Biofuels Not All They're Cracked Up to Be

Willow, miscanthus, rape oil and other plant-based sources of fuel have all been touted as the saviour of farming, and our advisory services have put a lot of effort into promoting their production. But these crops seem to have always been dependent on either huge tax rebates on the fuel produced or, as in the case of willow, a means of profitably disposing of wastes such as sewage sludge, which otherwise have to be exported for further treatment.

With the recent dramatic rises in the price of grain, the competition between growing either food or fuel has increased and grain for food rather than for the production of ethanol would seem to be the safer bet. Oil is still by far the cheapest available source of fuel, despite hitting $120/barrel recently.

Caution is needed before investing in the production of unproven crops, which are often promoted with wild promises of great riches. There is no doubt that some fuel crops, such as oil seed rape and hemp, can provide an excellent break crop and they do have a real value, especially where sugar beet was previously grown. However, to put large sums of money into growing fuel crops on a continuous basis would need careful investigation.

We have seen many, apparently profitable farm enterprises rise and fall -- ostrich and deer farming come to mind -- and even the production of free range eggs became unprofitable when supply outstripped demand.

The one reliable and traditional fuel, the wood log, is regaining popularity, especially with the sophisticated systems now available for its use.

Perhaps anyone thinking of producing fuel should take a close look at forestry, especially with the generous establishment grants available.

View the Irish Independent story by clicking here.

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