State willow subsidy ‘inadequate’

THE Government subsidy to farmers growing willow as fuel for renewable energy uses is woefully inadequate and will not provide them with the necessary incentives to invest, according to the Wood Energy Association.

WEA spokesman Raymond O’Neill said farmers face a seven-year pay-back period after taking into account the subsidy of up to €1,450 per hectare.

But annual average net income over a 10-year period is estimated at less than €270 per hectare, not counting the cost of any borrowings which may be involved.