Biofuels

Part of Oral Answers to Questions — Environment, Food and Rural Affairs – in the House of Commons at 10:30 am on 9th June 2005.

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Photo of Elliot Morley Elliot Morley Minister of State (Environment and Agri-Environment), Department for Environment, Food and Rural Affairs 10:30 am, 9th June 2005

There are not many farmers involved in onshore wind farm businesses, although some receive a rental income from them. There is a range of diversification available to farmers, in which biofuels play an important part. Farmers are allowed to grow biofuel crops on set-aside land, for example, and a 20p reduction in fuel duty is available to encourage the use of biofuels. We are also considering other measures to encourage their use, including a potential biofuel obligation on oil companies. About £50 million is also available to encourage the development of biofuels.