Farmers will be able to reap better returns by cultivating food grains than growing raw material for bio-fuels given the surge in world food prices, reported the Irish Independent.
Farmers need to be cautious while investing in fuel crops as profits on bio-fuels depend on sops such as tax rebates provided by the governments and also on the disposal of the waste.
The closure of National Toll Roads’s bio-diesel plant in Germany is an example to investors on the non-profitability of the industry.
The newspaper suggested that taking up forestry could prove to be more viable as use of wood log is regaining popularity.