European Commission EC Energy Crop Scheme

Website: ec.europa.eu/agriculture/index_en.htm




To find similar Items, click on a keyword below:
Publications



EC Support for Energy Crops

Energy Crops (119 Kb PDF)

COM(2006) 500 final, Brussels, 22.9.2006 (176 Kb PDF)

REPORT FROM THE COMMISSION TO THE COUNCIL, on the review of the energy crops scheme (under Article 92 of Council Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers). Proposal for a COUNCIL REGULATION amending and correcting Regulation (EC) No 1782/2003 establishing common rules for direct support schemes under the common agricultural policy and establishing certain support schemes for farmers and amending Regulation (EC) No 1698/2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD).

Background Information

The reform of the Common Agricultural Policy introduced new aid to encourage the production of crops for use as fuels for the production of electricity or liquid transport fuels. While the existing scheme for set-aside land to be used for the cultivation of crops for non-food uses continued, the reform offers farmers two systems for the encouragement of energy crops, via the new energy crops aid and through the set-aside scheme (allowing growing of crops for many non-food uses, one of which is energy production).

In September 2006 Under the proposed scheme, the maximum land area eligible to benefit from the EU premiums would be extended from 1.5 to 2 million hectares to make room for countries such as Poland and the Czech Republic that joined the EU in 2004. The new scheme would begin in 2007, following approval by the Council of Ministers.

At the time the new scheme was introduced, support for energy crops consisted of allowing the industrial crops to be grown on set-aside land. While energy crops account for the largest amount of non-food production on set-aside land, specific aid for energy crops is introduced with the objective of decreasing fossil carbon dioxide.

This aid is available to farmers who produce energy crops. Initially it was to be applied on a maximum guaranteed area in the whole EU, of 1 500 000 hectares. Farmers qualify to receive the aid if their production of energy crops is covered by a contract between the farmer and the appropriate processing industry.

Where the processing occurs on the farm concerned no contract is necessary. The farmer and processor do not have to be in the same Member State. Penalties are applied in the form of reductions of aid if the EU maximum guaranteed area is exceeded (the area per farmer for which aid is claimed is reduced proportionately in the year in question).

By definition Energy crops are crops supplied essentially for the production of

• biofuels or other renewable fuels for transport
• electric and thermal energy produced from biomass.