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Alternative Farm Enterprises

Dáil Éireann Debate, Wednesday - 24 June 2015

Wednesday, 24 June 2015

Ceisteanna (149)

Seán Ó Fearghaíl

Ceist:

149. Deputy Seán Ó Fearghaíl asked the Minister for Agriculture, Food and the Marine if he has considered the development of an indigenous willow-growing industry located in the midlands and underpinned by long-term supply contracts; if he has examined incentive measures, including grant aid or tax breaks, with the Minister for Finance; and if he will make a statement on the matter. [25206/15]

Amharc ar fhreagra

Freagraí scríofa

My Department has had a Bio-Energy Establishment Scheme in place since 2007, and this Scheme specifically provides support for the establishment of willow plantations. The Scheme has been variously funded at different times solely by the Exchequer or by a combination of national and EU funds. At present, the scheme is wholly Exchequer-funded.

The 2015 Scheme focuses exclusively on the growing of willow and provides establishment grants to farmers of up to 40% of the crop establishment costs subject to a maximum grant of €1,040 per hectare. In the light of disappointing take-up in recent years, and in response to submissions from the sector, the eligible area for planting was increased substantially from 30 hectares to 50 hectares under the 2015 scheme. Despite this, interest in the scheme remains very low with just four applications this year for a total of 145 hectares of willow, much of which is not expected to proceed. In the circumstances, my Department is now reviewing its options for the future.

The following table shows planting levels under the Scheme since 2007.

Planting figures for the Bioenergy Scheme

Year

Miscanthus

Willow

Total Area Planted

Total Expenditure

(Hectares)

(Hectares)

(Hectares)

€m

2007

617

64

681

0.654

2008

775

128

903

1.077

2009

709

168

877

1.090

2010

159

185

344

0.594

2011

78

130

208

0.357

2012

64

99

163

0.258

2013

12

62

74

0.178

2014

0

103

103

0.087

Total

2414

939

3353

4.32

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