§ Patrick MercerTo ask the Secretary of State for Environment, Food and Rural Affairs what subsidies there are to encourage British farmers to produce crops capable of being transformed into biofuels. [100217]
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§ Mr. MeacherTransport biofuels can be produced from crops such as oilseed rape, wheat, potatoes and sugar beet. The Government are promoting the production of these biofuels through the existing 20 pence/litre cut in duty for biodiesel compared to ultra-low sulphur diesel, and the intention announced in November's pre-budget report to reduce the duty for bioethanol by 20 pence/litre compared to ultra-low sulphur petrol.
This Department has allocated £29 million under the Energy Crops Scheme for establishment grants for short rotation coppice (SRC) and miscanthus, and for SRC growers to set up producer groups. The Woodland Grant Scheme and Farm Woodland Premium Scheme provide grants to create and manage woodland, which can help in the production of wood fuel. £66 million is available to develop markets for biomass in heat, combined heat and power and power generation. A further £3.5 million has been allocated to develop the supply chain required to harvest, store, process and supply biomass to energy end-users.
Non-food crops receive support under the European Union's Arable Area Payments Scheme and can be grown on set-aside land.