288 Mr. Barry asked the Minister for Agriculture, Food and Forestry if his Department will encourage and support non-food farming as a practical way of helping the Irish farming community; and if he will make a statement on the matter. [18474/96]

I am anxious to encourage the use of non-food farm crops to maximise the potential for our natural resources and to enhance the rural economy. Set-aside land may be used for the production of such crops and a wide range of crops are permitted under the regulations. For example, oilseed rape for bio-diesel, cereals and sugar beet for bio-ethanol and short rotation forestry for biomass production are permitted. Except for sugar beet, payments are made of all set-aside land used for the production of these crops.

In addition, under the Operational Programme for Agriculture, Rural Development and Forestry 1994-99, significant funds are made available for non-food uses of land. These relate to forestry and alternative enterprises, mainly horse and greyhound production.