Farmers and land managers planting miscanthus and short rotation coppice have until the end of August this year to submit any applications for new agreements under the current Energy Crops Scheme (ECS).

Natural England has announced that the deadline is officially 31 August for new agreements to start by the end of December 2013, with applications subject to an environmental appraisal including a site visit.

Established as part of the Rural Development Programme for England 2007-2013, the ECS aims to support the planting of miscanthus and short rotation coppice in appropriate locations.

Due to the programme finishing at the end of the year, no agreements under the current scheme can be entered into after that date.

Energy crops are used as a substitute for fossil fuels. They can contribute to a reduction in greenhouse gas emissions and help to combat climate change - thus proving extremely beneficial to farmers and land managers.

Approved crops under the scheme are short rotation coppice, including willow, poplar, hazel, silver birch, sycamore, sweet chestnut and lime, and miscanthus, also known as Elephant Grass.

Payments handed out cover 50% of the costs of establishing the crop, with ECS participants able to plant in one year, or choose to phase the planting for up to three years.

This means that those applying under arrangements for the current scheme can plant in 2013, 2014 and 2015.

Crops must be used for heat, combined heat and power or power generation, while plantings can also be combined with Environmental Stewardship options to increase the positive contribution of the crop to the environment.

It is not yet known how energy crops will be supported after the current scheme comes to an end, although work is underway to develop the next Rural Development Programme.

In the meantime, Natural England has moved to assure ECS customers that all existing agreements, along with all new agreements that are finalised and signed before 31 December this year, will continue until their agreed end date.

Robin Earle, land agent in Strutt & Parker’s Morpeth office, said: “With demand for biomass energy crops rising, and the number of users likely to continue increasing in the coming years as property owners are encouraged to improve the carbon performance of their assets through measures such as the Green Deal, those with suitable land should consider energy crops as an enterprise.

“Those in viable locations would be wise to consider the Energy Crop Scheme while the window is still open in order to take advantage of the rising energy markets.”