Funding increase for energy crop growers

Farmers venturing into energy cropping this year are now eligible for half-rate grant funding from a scheme administered by Natural England.

The Energy Crops Scheme (ECS) provides grants to landowners for the establishment of biomass crops such as miscanthus grass and short rotation coppice, primarily willow. From 1 January 2010 the rate of funding available has increased from 40% to 50%.

Payments will be made to cover half the cost of cultivation, ground preparation, rhizome/rootstock supply and planting. The main provisos are that a minimum of 3ha (7.4acres) of biomass cropping is established and that this must be retained for at least five years.

Most importantly, the crop must be used to produce electrical power and/or heat. But those farmers growing the crop solely for rhizome multiplication – often the most profitable option – will not be eligible for grant aid.

The higher rate of funding will also be available to farmers that made grant applications in 2009, but haven’t yet started getting the crop established, as long as no costs have been incurred.

With the government’s targets to reduce greenhouse gas emissions, Natural England is keen to encourage the planting of biomass energy crops for use as a substitute for fossil fuels in power stations, combined heat and power (CHP) units and biomass heat boilers.

This will come as good news to the developing energy cropping sector which suffered a major setback when the industry’s biggest player, Bical, went into administration in November last year. A new company, Renewable Energy Crops, has since taken on Bical’s existing supply contracts and growers.

New growers are urged to get their grant application forms in as soon as possible to allow as much time as possible for processing before the spring planting season begins.