The Bioenergy Scheme for 2010 offers establishment grants of up to €1,300 per hectare or 50% of the cost to farmers to plant Miscanthus and Willow. The closing date for submission applications for pre-planting is quickly approaching – Wednesday, 31^st of March 2010.

Why willow?

Willow is native to Ireland and flourishes in our cold, rainy climate.  Little to no problems exist in establishing this crop and it grows quickly. In winter it can be cut back to ground level and then left in the ground to re-sprout the following spring.

However, there are no financial returns until the third year after planting as willow needs to mature for three years before its first harvest, but significant grants for the establishment of willow plantations exist in the Bioenergy Scheme.

Advantages and disadvantages of growing willow

John Keely, Manager of the Willow Project in Farrelly Brothers, has noticed an uptake in inquiries, “It’s difficult to judge how many will end up as growers but there certainly has been a lot of interest in willow.  However, in these economic times people are understandably cautious, money is the big thing, they want to know exactly what their return will be.”

He added, “This year they should get €200 an acre on good land, on average that would be more like €145.  It’s very easy to establish as a crop, we’ve had absolutely no establishment problems and all the growers have a guaranteed market. We give them a contract to buy it back from them. We’re not recommending it to be planted on poor land because you’ll get poor crops but this is the same with any crop.”

Raymond O’Neill, Biomass Manager at Natural Power Supply (NPS), pointed out further advantages, “Once the crop of willow is planted a farmer doesn’t have to spray it or mind it. There’s a ready market as willow is used for woodchip in domestic boilers and power stations, so people should feel confident that the end market is plentiful and growing.”

“Luckily for us willow likes rain, in fact it grows better in wet conditions and has a huge capacity to absorb water, though willow should not be planted or harvested on overly wet land. Actually, our climate facilitates the growing of willow much better than the Scandinavian countries like Sweden where willow is an established crop,” Raymond said.

“In Sweden willow is grown on over 22,000 hectares whereas in Ireland it’s only grown on about 500 hectares, so we have room for expansion,” said John Keely.

Additionally, with the introduction of carbon tax and the increase in the cost of oil, John Keely expects the demand for woodchip is set to grow and grow as people move away from using oil as their main heating fuel.

“In the last year oil prices have increased by as much as 30%, that price is determined by international forces, whereas on a national basis woodchip gives a secure and stable supply of energy, you’re not subject to the knock-on effects of international events,” John said.

Willow particularly suits part-time farmers, or farmers who are growing a variety of crops and who have another source of income for the first three years while the crop is being established.

Why Miscanthus?

Miscanthus, also known as Elephant Grass, is a fast growing, perennial woody type grass that originated in South East Asia.  The crop has low nutrient requirements, produces high yields, suffers from no known pests or diseases, and is environmentally friendly. It can be harvested every year after the first two years.

Miscanthus (Photo courtesy of JHM Crops Ltd.)

Once established the crop does not require fertilizers, disease control or weed control. The crop sheds its leaves over the winter and they fall to the ground forming a covering that soaks nutrients into the soil, replenishing it.

Miscanthus grows to such a height and thickness that it prevents substantial growth of weeds or other grasses once it is in its established form. This low level of maintenance plus the fact that it remains in the ground for 15-20 years yielding a crop every year after the initial two years has made it a popular choice with farmers.

It has been shown to be very suited to the Irish climate and soils and a yield of 6-7 tons per acre can be achieved from the fourth year onwards.

Miscanthus is one of the most efficient and environmentally friendly means of producing sustainable biomass for renewable energy and other markets. It produces biomass three times more efficiently than wheat, yielding a quality product that can be used across a range of markets.

With more stringent environmental regulations and biodiversity laws coming online, crops such as Miscanthus, provide farmers who require a steady return from their land with an alternative land use option.

A Miscanthus Farmer

Helen and Joe Hogan manage a family farm, which is located in Gortnagrour, Adare, Co. Limerick. They grew the first commercial crop of Miscanthus in Ireland and have now successfully formed JHM Crops Ltd. which promotes Miscanthus as a viable alternative crop.

JHM Crops already has almost 4,000 acres of Miscanthus growing under contract around the country, and the renewal of the Bio-Energy Scheme shows the determination of the Government to promote and expand the industry into the future.

Cost involved

“Predominantly Miscanthus is grown by part-time farmers, typically someone with a job and who has land at home but hasn’t time to put into it. The only drawback is the initial financial investment involved. It costs about €1,200 per acre to plant but you’ll receive a 50% grant so that cost is reduced to €600. By year three you’ll get a net profit of in or around €300-350 per acre and the crop doesn’t have to replanted, you simply harvest each year thereafter,” Joe Hogan, of JHM Crops Ltd explained.

He added, “Misperceptions do exist about Miscanthus and I think this is because in the early days there was a lack of information and doubt about the market for this crop. However, now there is no denying the fact that a superb market exists. We personally can’t get enough supply to meet the demands of our own market. For example, we turn our crop into round logs suitable for domestic use in fires and stoves, they give off tremendous heat and this fuel is also kind to the environment. We supply shops with this product and find the demand is increasing.”

New carbon laws which are months away from being introduced will mean that the miscanthus logs will become cheaper than the alternatives in the market, so JHM Crops Ltd sees their market increasing even further, particularly because this crop has over twenty-five different uses.

“I’m confident that miscanthus will grow in popularity, certainly if the level of enquiries we’ve received is anything to go by, however, there is some concern about securing finance for the initial investment but what people and financial institutions have to remember is that the return is good and growing,” Joe said.

Further Information:

• For information and application forms for pre-planting approval visit the Bioenergy Scheme section of the Department of Agriculture, Food and Fisheries web site

For further information from this article:

• Farrelly Brothers, Meath, 046-9249392
• JHM Crops Ltd – www.jhmcrops.ie
• Natural Power Supply - www.nps.ie