Under the energy crops scheme, introduced by Council Regulation No. 1782/2003, crops such as miscanthus may qualify for aid of €45 per hectare provided they are intended primarily for use in the production of biofuels and electric and thermal energy produced from biomass. The aid, payable in addition to the single payment, is granted in respect of areas where production is covered by a contract between the farmer and a processor, except in the case of processing undertaken by the farmer on his-her holding. In addition, miscanthus is among the non-food crops that may be grown on set-aside land to activate set-aside entitlements under the single payment scheme.
As part of the EU strategy for biofuels, it is intended to review the operation of the energy crops scheme during the coming year. In that context I will be seeking to have the scheme made more attractive to farmers. Teagasc is conducting research into the potential use of miscanthus and other arable crops and residues as heating fuels.