Budget 2026: Key takeaways for Irish farmers
Minister Jack Chambers delivering his Budget 2026 statement
Farm succession, funding for TB eradication and support for the tillage sector are amongst the farming measures announced in the Budget.
In his speech, Minister for Finance Paschal Donohoe said he would extend the Farm Consolidation (Stamp Duty) relief, Farm Restructuring (CGT) relief and the Young Trained Farmer (Stamp Duty) relief to the end of 2029.
Also announced was the extension of the Accelerated Capital Allowance scheme for slurry storage facilities for an additional four years. Minister Donohue highlighted that these measures constitute State Aid and must comply with EU State Aid rules.
In regard to climate, the Minister of Finance announced that an increase in carbon tax will bring the tax to €71 per tonne of CO2 emitted, which will come into effect tomorrow, October 8, for auto fuels and will apply from May 1 2026, for all other fuels.
Additional revenue as a result of the carbon tax increase is estimated to be €121m in 2026. The full-year additional yield is estimated to amount to €157m.
“These revenues will be ring-fenced to ensure that the carbon tax policy is progressive. We will spend this revenue on social welfare measures and other measures to prevent fuel poverty and to ensure a just transition; a socially progressive national retrofitting programme, and funding to encourage and incentivise farmers to farm in a greener and more sustainable way,” Minister Donohue said.
Minister of Agriculture, Martin Heydon, said Budget 2026 provides for a 9% increase in funding when compared to 2025. The newly announced TB Action Plan will receive €85m in additional funding more than doubling the allocation for Bovine TB eradication. This results in a total budget of €157m for TB.
"This will allow the revamped TB programme to focus on tackling disease levels through the implementation of the measures laid out in the new TB Action Plan which I launched last month. It is vital we ultimately reduce the cost of this disease for all in the coming years. This allocation will support and enable farm families who are currently dealing with the stress of a TB outbreak to navigate a way out of a TB restriction and protect those herds currently free from TB from the stress of a TB outbreak," said the Minister of Agriculture.
Funding for the Agri-Climate Rural Environment Scheme (ACRES) will increase by €20 million to reach €280 million in 2026, continuing to support over 53,000 farmers within the scheme.
The National Sheep Welfare Scheme will receive €20m, allowing for the continued assistance of the 17,000 sheep farmers.
Minister Heydon has also announced an allocation of €88m to the Targeted Agricultural Modernisation Scheme (TAMS) in an effort to support competitiveness on Irish farms, generational renewal and important investments such as slurry storage.
Regarding the tillage sector minister Heydon said he would need a consultation with stakeholders after his announcement of €50m to be applied to several named schemes.
“The tillage sector is a critical part of the agri-food sector, producing high quality animal feed, bedding and ingredients for the food and drink industry. At a challenging time for the sector, I will be supporting the tillage sector in 2026 with funding of at least €50m through the Protein Aid Scheme, the Straw Incorporation Measure and a Tillage Support Scheme. Having secured a funding allocation for this scheme, I intend to consult with stakeholders on its design and operation in due course. These measures will help support tillage farm incomes and provide a strong base to protect the future of tillage farming in Ireland.’’
