Dáil Éireann Debate, Wednesday - 20 March 2013
438. Deputy David Stanton asked the Minister for Agriculture, Food and the Marine if he has investigated the economics of growing miscanthus by farmers as an energy crop; and if he will make a statement on the matter. [14088/13]
Amharc ar fhreagraThe Deputy will be aware that Teagasc, as part of its statutory remit, provides advice in agriculture matters, and this includes advice relating to research and innovation in the agriculture sector.
Teagasc has been carrying out long-established research into energy crops at its Crops Research Centre, Oak Park. Best Practice Guidelines have been produced for both miscanthus and willow, and were first published by Teagasc in 2007. Subsequently, Teagasc and its counterpart in Northern Ireland - the Agri-Food and Biosciences Institute (AFBI) – jointly published best practice guidelines in 2010 (updated in 2011). These guidelines are reviewed and updated as appropriate in the light of new research as it emerges. The guidelines include a section on the economics and market returns associated with the crops, including a table of payback calculations over 20 years. In calculating the payback in respect of miscanthus, consideration is given to factors such as yield, price per tonne, bank interest, inflation, the crop establishment cost and the benefit of the grant-aid available under my Department’s Bioenergy Scheme.
A copy of the Best Practice Guidelines is made available as part of the information offered to potential applicants under the Bioenergy Scheme and may also be found on my Department’s website at (http://www.agriculture.gov.ie/ruralenvironment/climatechangebioenergybiodiversity/bioenergy/bioenergyscheme/ ).
The Bioenergy Scheme Terms and Conditions advises potential applicants to obtain independent technical advice as to the suitability of their land for planting willow and miscanthus crops and as to the necessary husbandry, particularly weed control, and management requirements for optimum establishment.
The returns that can be achieved from energy crops may be significantly influenced by the location of the crop relative to the market. As the energy crops industry is still relatively young, the supply/demand situation is constantly evolving, and this can influence the economics of growing biomass crops for early adopters.
An Excel calculator for energy crops, which provides details of the economic returns over the lifetime of the crop, is available at Teagasc offices throughout the country. This is a useful tool to help inform potential applicants in the decision making process when considering whether to plant energy crops.
