Farming organisations call for unused fuel support to remain in the sector
Macra, IFA and ICOS have all called for the Government to invest unused farmer supports back into he agricultural sector.
Farming organisations have added to the recent call for unallocated funds from the €85m Fuel Support Scheme to be recirculated within the agricultural sector.
Following Macra na Feirme's recent call to redirect unspent farmer fuel supports back into the agricultural sector, the Irish Farmers’ Association (IFA) and Irish Co-operative Organisation Society (ICOS) have voiced their agreement.
IFA farm business chair Bill O’Keeffe said any unallocated funds from the fuel support funding provided to the agricultural sector must remain within it.
“It is now clear that a sizeable portion of the €85m allocated under the fuel income support scheme to help the agricultural sector through the energy crisis will not be utilised. However, it is absolutely vital that these funds do not return to the exchequer and instead stay with the Department of Agriculture,” Mr O’Keefe said.
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According to the department, payments are expected to total about €27m, leaving up to €58m available after this round.
Mr O’Keefe said: “The energy crisis has had a huge impact on costs within the sector. In addition to fuel, we have also seen fertiliser costs substantially increase.
"While fuel costs briefly returned to more normal levels last month, we have seen a 40% increase again in recent weeks, so we may need an additional run of payments to assist with this volatility.”
He suggested a “logical option” to reinvest unclaimed supports would be to assist farmers during periods of high fertiliser costs.
“There are plenty of other ways we can use these funds to support the sector through this energy crisis, but the absolute number one priority must be that these funds are fully spent within agriculture,” Mr O’Keeffe added.
Following a pre-budget discussion between an ICOS delegation and agriculture minister Martin Heydon, ICOS president Edward Carr urged the government to recognise the levels of uncertainty and volatility within Irish agriculture and to consider redirecting unclaimed fuel funds.
"This is adding extra cost and labour pressures. In addition, the sector must deal with complex regulatory, environmental and generational renewal pressures, which require targeted action,” Mr Carr said.
“ICOS is calling on the Government to retain the funding unallocated under the fuel support scheme for the farming sector due to the unprecedented challenges it is facing.
"We outlined to Minister Heydon the importance of co-funding the EU fertiliser package to provide meaningful support to farmers given the risks associated with fertiliser availability, price volatility caused by the Iran war and the ongoing closure of the Strait of Hormuz.”
He said the conditions for the fuel supports were steered toward heavy users of agricultural fuels, with Mr Carr suggesting many farmers did not apply to the scheme as a result.
Mr Carr also highlighted the elevated price of fertilisers, which remain volatile with the unfolding situation in Iran, which “must be recognised and acted upon”. Mr Carr thanked Mr Heydon for a constructive meeting, in which ICOS raised its key priorities ahead of Budget 2027.
He added “the Government must urgently address the funding challenges facing the Farming for Water EIP and the TAMS programme for slurry storage to protect the future of Ireland’s Nitrates Derogation.
“ICOS is open to working with the minister to address the income volatility challenges facing the sector. It must also be noted that we remain very disappointed by the unwillingness of Government to engage in the development of a new taxation measure to address the extreme fluctuations in income experienced by primary agriculture, which is unique compared to any other sector in the economy.”
