Application window for €100m fuel scheme supports will open in May

Farmers can apply for the fuel support scheme as early as next week, with payments currently scheduled to be distributed by the end of June

Farmers and contractors successful in their application for the fuel scheme could receive the five-month lump sum by the end of June.

The application window for the promised €100m fuel support scheme will open in early May.

Agriculture minister Martin Heydon said he intended to have applications open as early as next week.

The department, after engagement with farming organisations and contractor representatives, has agreed on a four-week application window for farmers and contractors to make an application for the support scheme.

The supports will be measured on 2025 fuel usage, with Mr Heydon also announcing new contractors or young farmers will also be included within the supports.

“We also have a measure in there for new entrants, where we can support those who this is their first year as a farm contractor, or as a new young farmer,” he said.

Currently, the department has suggested farmers should expect payments by the end of June. The fuel support scheme for farmers and farm contractors will be backdated to March, and will run until the end of July, with further payments dependent on the average national diesel prices.

The department said farmers and agricultural contractors would benefit from a support rate equivalent to about 20cpl or €200 per 1,000l of marked gas oil, based on verified fuel usage in 2025.

The minimum level of payment will be €100, in line with regular department schemes, and the maximum rate will be dependent on the level of applications, but will be, in any event, under the ceiling set by the upcoming temporary State aid framework.

Registered farmers will be able to apply through their AgFood system portal for the scheme, but contractors will have to submit applications through a “paper-based system” if they are not also registered farmers.

Under the scheme, there will be one payment per applicant to cover a full five-month period rather than monthly payments.

The minister explained farmers would have to submit their entire 12 months of fuel usage in 2025 with their application. With those figures, the department will then calculate the support payments “based on five months pro rata”. 

For farm and forestry contractors, the scheme will require they must be registered for VAT, tax-compliant, and must supply services for the primary production of agricultural products (including forestry) on the farm.

Mr Heydon also highlighted that if fuel was bought at the end of 2024 but used in 2025, it is still eligible for consideration and must be included in a farmer's application.

The support scheme for fishers and aquaculture tailored to the specific needs of that sector will be operated separately by Bord Iascaigh Mhara (BIM) on behalf of the department. It is anticipated the scheme will also be open in May.