I welcome the opportunities presented by the development of the wood energy sector. Wood fuel from Irish forests is a sustainable, renewable, carbon-neutral and indigenous source of energy and has significant potential to replace imported carbon emitting fossil fuels. Indeed, wood biomass is already making a significant contribution to Ireland's renewable energy targets. My Department operates a number of initiatives to promote farmer participation in forestry and to realise the opportunities presented by the emerging wood energy sector.
Farmer participation in forestry is supported and encouraged through a range of attractive financial incentives and supports. In 2010, some €116 million has been allocated for expenditure by my Department specifically in the forestry sector. The Afforestation Grant and Premium Scheme combines 100% grants for planting and attractive premiums payable for 20 years for farmers. My Department has already paid out over €70 million this year in annual forestry premiums to private forest owners, most of whom are farmers, and a further €20 million in planting grants.
My Department, in conjunction with Teagasc, has assisted in the formation of 16 forest owner producer groups. The primary purpose of these groups is to encourage farm forest owners to co-operate in the various aspects of forest management and in the marketing of the timber produced in order to achieve economies of scale. This support is aimed at increasing the supply of forest thinnings to, inter alia, local wood energy facilities.
My Department also undertakes significant promotional activities to encourage increased farmer participation in forestry. Funding is also provided to Teagasc who plays an important role in the development of forestry in Ireland through promotion, training and advice. Forestry Advisers at Teagasc offices run a number of training courses, information evenings and field days and provide free and independent advice on all aspects of forestry to farmers.