ON-FARM RENEWABLE ENERGY ENERGY CROPS Agricultural Accounts and Prices Working Party 2- 3 DECEMBER 2013 DOC. ASA/AAP/156 The aim of this presentation is to: • raise the topic of the on-farm Renewable energy production, biomass, biofuels and energy crops in the EAA; and • discuss about the “short rotation coppice” as a borderline issue between EAA and EAF BACKGROUND On-farm RE production has the potential to play a crucial role in the transition of European agriculture, In the last CPSA meeting held on 7-8 November 2013 in Eurostat, the issue of energy crops was highlighted by several delegations as one of the main priorities for discussion in the future Borderline issues between agricultural and forestry statistics ON-FARM RENEWABLE ENERGY (1/2) Renewable Energy is defined here as energy derived from natural resources which are renewable (being naturally replenished, e.g. sunlight, wind, rain, tides, geothermal heat, biomass) • represents an additional and stable income source, • often guaranteed for longer periods of time • farmers are not being subject to future energy price increases, • contribute to environmentally friendly energy production ON-FARM RENEWABLE ENERGY (2/2) On-farm Renewable Energy is produced on farms and covers energy generated by installations paid and/or operated by farms as well as by installations paid and/or operated by other legal entities (whether owned and/or managed by the farmer or not), • primary, intermediate and final Renewable Energy that is both produced and consumed on the same farm, • final or intermediate Renewable Energy that is consumed on one farm but produced on other farms, • final energy that is produced on the farm and that is exported, • final or intermediate Renewable Energy produced on farms from biomass or waste from non-farming activities, • intermediate and final Renewable Energy produced not on farms but using biomass or waste produced on farms ENERGY CROPS (1/3) As regard the supply of energy crops in the EU, the main species concerned are: - Esterification to biodiesel production: Oilseeds, and specifically rapeseed, soybean, sunflower, castor, palm, Brassica jarinata; Jatropha spp; - Fermentation to bioethanol production: Starchy crops (wheat, maize, barley, rye, sugar beet, sugar cane, sugar sorghum, potatoes); - Energy crops for biomass (including short rotation coppice): Reed canary grass (Phalaris spp), Willow, Poplar, Sycamore, Eucalyptus, Miscanthus, Hibiscus, Cynara cardunculus, Phalaris, Panicum,... ENERGY CROPS (2/3) In many of these cases the farmer does not necessarily know whether the agricultural products will be used for food, feed or energy production, when the farmer sells the production. In other situations, associations of farmers set up their own processing plants. Eurostat would welcome the opinion of the delegates about the general treatment of this issue, having in mind the variety of situations (“pure” contracts, own-processing by cooperatives of farmers, vertical integration). ENERGY CROPS (3/3) 1. Most of the crops used for energy purpose are classified in the same NC code as the same crop used for food or feed, e.g.: Barley for bioethanol in NC 01300 Barley 2. The specific energy crops are not used for purposes other than energy production and are cultivated on arable land, e.g. Miscanthus and Phakaris spp should be include in NC 02900 “Other Industrial Crops” as part of the aggregate NC 02000 'Industrial crops'. SHORT ROTATION COPPICE (SRC) (1/2) SRC consists of densely planted, high-yielding varieties of either willow or poplar, grown on previously arable land, and harvested on a 2 to 5 year cycle, (commonly 3) SRC is a woody, perennial crop, and a plantation could be viable for up to 30 years before re-planting. SRC are classified as woody energy crops and due to the fact that the land on which the SRC plantation is established remains in agricultural use,… SRC output value should be recorded in the EAA or in the EAF? SHORT ROTATION COPPICE (SRC) (2/2) (Two TF Eurostat): As regard the approach followed by other domains (agriculture/ forestry), no definitive conclusions were reached. In general further clarifications are needed because in some countries the area concerned is considered as part of the UAA, in others as part of woodland. It was agreed to do further work on clarifying whether it should be counted in agricultural or forestry statistics. However it was agreed as a starting point that: · Statistics on short rotation coppice are needed; and · Should be counted only once, either in forestry or agricultural statistics Questions to the delegates: • Eurostat is interested in the practice followed by the Member States concerning the register of both the production of on-farm renewable energy and biomass/ energy crops in the EAA. • Do the delegates agree with the proposed principles for the classification of crop output used for energy production? If not, which could be the most appropriate method for its recording? • Eurostat is in particularly interested to know the opinion of the AAP Working Party about the most appropriate way of recording of Short Rotation Coppice in the EAA/EAF. Thank you for your attention! Eurostat
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