Denis Naughten
Question:31 Mr. Naughten asked the Minister for Agriculture and Food the incentives in place to encourage diversification from conventional production; and if he will make a statement on the matter. [14065/02]
Written Answers. - Crop Production.
I presume the question by the Deputy refers to diversification of production in the arable crops sector, from the traditional cereals crops to other crops such as oilseed rape and protein crops. In general decisions made by producers will be influenced by the cost of production as compared to returns from the market, the rate of area aid available, and the suitability of the particular crop to Irish conditions.
Under the Agenda 2000 agreement the rate of area aid for oilseeds was aligned with that for cereals, which from this year is €383.04 per hectare. The effects of this alignment on production will be assessed as part of the mid term review of Agenda 2000. Protein crops which consist of peas, field beans and sweet lupins receive a premium of €9.5 per tonne over cereals, which in Ireland translates into an additional €57 per hectare over cereals.
Oilseed rape traditionally has been used as a break crop in Ireland, on land used to produce wheat. The absence of crushing facilities here has meant that virtually all of the harvested crop has had to be exported, and this has reduced potential returns to producers. The area under this crop in Ireland has been insignificant with less than 1,000 hectares grown in 2001. Production of protein crops, although higher, only amounted to about 2,900 hectares. These figures should be looked at in the context of a total of some 240,000 hectares of land in the arable crops scheme.
Production of oilseeds and a range of other crops for non food uses such as bio fuels, is permitted on set aside land without affecting the farmers entitlement to the set aside payment. The area of land used for this purpose in Ireland in 2001 was 350 hectares.
It is not open to me, under EU rules, to provide additional incentives over and above the area aid, to produce these crops.