This year, some 3,745 tillage farmers undertook to set-aside 36,753 hectares of arable land under the EU arable area aid scheme. Payments began in October 1994 and are ongoing so final figures are not available. It is estimated the EU funded subsidies in respect of set-aside totalling some £12.4 million will be paid. This represents an average payment to each farmer of £3,300.
Under the EU arable aid scheme, under which compensatory payments are made for eligible crops grown as well as land set-aside, total payments of £67.5 million have been applied for by 15,778 tillage farmers. To date £42.5 million has been paid out to 12,743 of the applicants.
Under EU regulations set-aside land may be used for the growing of crops for manufacture within the EU of products not primarily intended for human consumption. A range of annual and perennial crops is permitted under the scheme but of most interest to us is oilseeds and sugar beet for the production of biofuels and pharmaceutical materials. Forest trees with a short harvest cycle of ten years, may also be grown for the production of biomass for burning in power stations for energy. There is major interest in the EU in this scheme and this year the estimated area of crops sown for non-food purposes was 685,000 hectares, an increase of 160 per cent and the previous year. While the use of set-aside land for non-food purposes has been relatively small in Ireland, I am encouraged by the development of a pilot project in the Leinster area where over 480 hectares of oilseeds have been grown for use in the pharmaceutical industry.