EU Cuts Subsidies For Energy Crops In 2010 – Romanian Agriculture Min

„In 2009, the European Commission decided not to grant financial support for energy crops, as the objective to increase production was met sooner than it was initially foreshadowed,” the Agriculture Ministry said in a press release Thursday.

According to the ministry, the EC regulation no. 73/2009 states that „due to recent developments in the bio-energy sector and, in particular, to the strong demand for such products on international markets and the introduction of binding targets for the share of bio-energy in total fuel by 2020, there is no longer sufficient reason to grant specific support for energy crops.”

Subsidies for energy crops were granted until this year to all farmers in the EU member states who signed contracts with bio-fuel producers, or first-stage processors to produce alternative energy.

The maximum value of the subsidies granted at an EU level was established at EUR45 per hectare for no more than 2 million hectares.

In 2007, Romania received subsidies totaling around EUR682,519 for about 22,000 hectares. In 2008, the country was granted EUR1,470,000 in subsidies for 32,650 hectares and is about to receive other about EUR3.128 million representing subsidies allotted for last year for 69,509 hectares.