This item was published during the term of a previous administration that ended in April 2007
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Study to examine biofuels within Scotland
04/11/2003
More of Scotland's farmland could be
used to grow energy crops under recent reforms to the
Common Agricultural Policy (CAP).
Speaking at the Scottish Crops
Conference at Perth, Environment and Rural Development
Minister Ross Finnie announced details of a study to
establish the availability of biofuels within Scotland, and
to identify any barriers to expansion of the sector.
The study by the Macaulay Land
Research Institute is being funded by the Executive.
Enhancing biomass power is a priority area in the
Executive's Forward Strategy for Scottish Agriculture.
The Executive is currently consulting
on the CAP reform package and the flexibilities available
within it.
From 2004 there will be a
provision for a new subsidy payment of €45
per hectare per year available for energy crops on land
other than that set-aside.
Mr Finnie said:
"The opportunities now open to us
under reform of the Common Agricultural policy mark a
crossroads for Scottish farming.
"The key achievement of the June
negotiations is to allow farmers the freedom to farm.
Farmers now have the opportunity to produce for the market,
not the subsidy.
Farmers across the board, must see
themselves as the first stage in the food - and drink
chain. There are other opportunities too.
"What is clear already is that
decoupling, breaking the links between subsidy and
production, is not optional. While there are limited
opportunities to recouple to address specific areas of
concern, decoupling will force agriculture to become more
market focused.
"The Forward Strategy for Scottish
Agriculture acknowledges that the production of non-food
crops, and the processing of animal residues into biofuels
and other products, offer considerable scope for
development.
"The Strategy also acknowledges that
Scotland must look to these new markets for solutions that
result in good economic returns to agriculture, while also
meeting our wider environmental objectives such as reducing
the use of non-renewable energy.
"The study will provide the basis for
future developments in the area of energy crops."
Mr Finnie also announced that as a
result of the exceptional weather conditions enjoyed this
year, provisional figures suggest that the Scottish cereals
harvest will be around 2.9 million tonnes in 2003, a rise
of 15% on the previous year.
Mr Finnie confirmed that payments for
2003 under the Arable Area Payments Scheme would start on
Monday November 17 - the first available day for payment
under the EU legislation.
The bulk of the
claims are expected to be paid within the
first 2 weeks.
Some £129m (£10m more than last year) is
expected to be paid out under the scheme by the end of
January 2004.
T
he June CAP Reform agreement provides for a new
energy aid scheme to be introduced from 2004. An
aid of €45 per hectare per year will be granted for areas
sown under energy crops, subject to a maximum guaranteed
area.
The aid will be granted only for those areas
covered by a contract between the farmer and the
processing industry.
The European Commission will review the energy aid
scheme by end of 2006, taking account of implementation of
the EU biofuels initiative.
The existing provision for growing energy crops
on set-aside land will continue under the Reform
agreement, although areas subject to an application to
the energy crops scheme will not count towards the
set-aside obligation.