Farm Ireland

Thursday 19 April 2018

Farming in brief: Biofuels backing sought by the IFA

The Biofuels Obligation Scheme (BOS) has failed to support indigenous industry and will lead to significant job losses, the IFA has claimed.

JJ Kavanagh, chairman of its alternative land use project team, said the scheme would result in the closure of many biofuel production plants that were previously supported by the Mineral Oil Tax Relief (MOTR) scheme.

Mr Kavanagh said companies that had invested heavily in the industry through the Government incentive now found themselves in a precarious situation.

"Many in the indigenous biofuels industry are convinced that the obligated parties will choose to import the required transport fuel mix and pay the penalty as it will be cheaper and easier to administer," he said.

He added this would lead to limited market demand for the indigenous biofuels tradable certificates and would adversely affect the price of the tradable certificates.

"We cannot see how the new scheme can create a degree of certainty in the biofuels market, nor will it encourage investment in sustainable biofuel production," he said.

CAP vote is a boost for young farmers

YOUNG farmers have been given a boost following a majority vote on a report on CAP funding by the European Parliament's Agricultural Committee.

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The report by UK MEP George Lyon came out strongly in favour of maintaining the CAP budget beyond 2013.

It also suggests investment loans to meet high start-up costs to attract young farmers, including women.

Ireland East MEP Mairead McGuinness described it as a positive development for Irish farming.

"The report should help to influence the shape of the Commission's reform plan for the CAP, although pressure will need to be maintained on the Commission over the next number of months," she said.

Farm-to-farm grain trading doubles

Farm-to-farm trading of grain doubled in volume from 400,000t to 800,000t in the last harvest.

IFA president John Bryan said every €10/t extra paid to a tillage farmer was worth €20m to the tillage sector, while every €10/t saved by a livestock farmer was worth €35m to the drystock sector.

With feed ingredient prices up by €9-22/t this year, the trend is set to continue, according to the IFA.

Mr Bryan added that high quality and specification were critical to the success of farm-to-farm grain trading.

Irish Independent