Department of Agriculture announces €100m fuel support
National Fuel Protest at Shannonpark Roundabout Cork on the N28. Picture: Larry Cummins
A fuel support package was announced by Minister for Agriculture Martin Heydon in an effort to support farmers, contractors and fishers.
Following the announcement that white diesel and petrol will be cut by 10c, and green diesel will be cut by 2.4c, with Carbon Tax not being applied now till the end of October, minister Heydon announced the department’s support package.
The €100m Fuel Subsidy Support Scheme aims to assist farmers, agricultural contractors, and fishers facing an increase in fuel costs. The payments will cover the months of March up to the end of July, which coincides with peak fuel usage on farms.
Key points are as follows:
- The support package comes to a total of €100m, and €20m will be issued to eligible support participants each month.
- Farmers, contractors, and fishers will be able to apply for support through a single application process.
- To be eligible, an applicant must have: active farming/ contracting status, tax compliance, and verifiable fuel usage.
- €5m a month will be issued to the fishing, forestry and specialist horticulture sector.
Approximately 120,000 farmers and 1,500 full-time agricultural contractors will be eligible to apply for support. Payments will be made through a single application process, with funding allocated based on fuel usage last year.
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Prices have risen from €0.97 per litre in late February to €1.80 per litre in recent weeks, placing severe financial pressure on key sectors of Ireland’s food production economy, resulting in almost week-long protests around the country.
Announcing the package, Minister Heydon said: “This Government recognises the exceptional pressure that rising fuel costs are placing on our farmers, contractors and fishers. This targeted and practical support package ensures that those most exposed to these increases will receive meaningful assistance at the most critical time of year."
The scheme will provide €20m per month to those who qualify for the support. Farmers and agricultural contractors will benefit from a support rate equivalent to approximately 20cpl of green diesel used based on verified fuel consumption in 2025.
The department said funding will be distributed proportionally, a point that was strongly emphasised in ongoing engagements with the representative farm and farm contractor groups.
Eligibility will require applicants to demonstrate active farming or contracting status, tax compliance, and verifiable fuel usage. A system of checks and inspections will be implemented to ensure accountability. EU state aid cover will also be necessary.
"We have worked intensively with representative stakeholder groups in recent times, and I believe that this represents a fair and effective scheme based on actual fuel usage, taking account also of the vital work played by farm contractors in our farming systems. This approach ensures that funding is directed where it is needed most, helping to sustain essential food production and rural economic activity,” Minister Heydon said.
Up to €5m per month of the fund will be used to support fishers and other sectors affected, such as forestry and specialist horticulture. The department has said a tailored fuel support scheme for fishers will be developed, subject to EU State Aid requirements.
Ministers of State at the Department Noel Grealish, Michael Healy-Rae and Timmy Dooley, also welcomed the support announced on Sunday following an intensive period of engagement with the stakeholder groups in the sectors affected.
The department has stated that it has commenced intensive preparations to implement the scheme as quickly as possible. Given the scale and complexity, timelines will be carefully managed to ensure efficient delivery. Stakeholders will be kept informed as the scheme is finalised and rolled out.
