§ Mr. LlwydTo ask the Secretary of State for Environment, Food and Rural Affairs what financial incentives are available for those who wish to grow biomass crops. [84198]
§ Mr. MeacherThis Department has allocated£29 million under the Energy Crops Scheme, part of the England Rural Development Programme, for establishment grants for short rotation coppice (SRC) and miscanthus and for SRC growers to set up producer groups. The Government are also providing £70 million of funding through a package of measures which will develop markets for biomass, including energy crops, in heat, combined heat and power and electricity generation. Short rotation coppice and miscanthus can be planted on set-aside land and receive payments under the Arable Area Payments Scheme. The European Commission has published initial proposals for further reform of the Common Agricultural Policy to take effect from 2004. Under these proposals, no crops would be grown on set-aside land. A new carbon credit of €45 per hectare is proposed for energy crops, to be paid to producers entering into a contract with a processor. The proposal includes a maximum guaranteed area of 1.5 million hectares eligible for this additional payment.