Ifac urges farmers to start preparing now for fuel support scheme

Farmers are expected to receive approximately 20cpl on green diesel under the new scheme, with payments based on verified 2025 fuel usage and backdated to March 2026. File photo

Irish farmers have been urged to take immediate steps to reduce costs and secure available support from the government's fuel relief support scheme.

The measures include a new €100m Agricultural Fuel Subsidy Scheme, alongside temporary excise reductions and the deferral of the planned carbon tax increase.

Irish Farm Accounts Co-operative Society Limited (Ifac) advisors have said that while fuel supply has now stabilised, the coming weeks will be critical for farmers looking to maximise the benefit of these supports.

Farmers are expected to receive approximately 20cpl on green diesel under the new scheme, with payments based on verified 2025 fuel usage and backdated to March 2026.

Head of Farm Supports at Ifac, Philip O’Connor, said: “There’s a tendency to wait for full details before taking action, but in this case, farmers will be better off starting now. Get your records together, review your fuel use, and be clear on what you’re eligible for.

"The practical step now is to take control of what you can, get your records in order, look at where fuel is being used, and plan ahead where possible. That’s where we’re focusing our time with farmers at the moment, because those small steps will add up over the season.” 

Ifac is advising farmers to take strategic action now:

• Prepare fuel records.
• Plan ahead of the carbon tax increase.
• Review fuel consumption.
• Ensure machinery is operating efficiently.
• Reassess fertiliser purchasing.
• Monitor pricing closely.

For preparing fuel records, claims under the subsidy scheme will be based on 2025 fuel usage. Farmers should gather all receipts, invoices and delivery dockets immediately and follow up on any missing documentation.

The increase in carbon tax has been deferred until October. Ifac advisors say that there is currently a window to plan fuel purchasing, particularly for those with storage capacity.

A full review of fuel consumption use across machinery, drying, heating and transport can deliver meaningful savings, even with modest reductions.

Poorly maintained equipment can significantly increase fuel use. Servicing and basic checks can reduce unnecessary spend and ensure machinery is working efficiently.

Fertiliser prices remain under pressure due to higher energy costs. Ifac are advising farmers that purchasing decisions should be aligned with both production needs and cash flow.

In regards to monitoring pricing, with excise reductions now in place, farmers should ensure these are being passed on and raise concerns where pricing appears excessive.