Budget 2027: Fertiliser and fuel supports for farmers
Macra president Josephine O’Neill warned 'fixing a flaw in an existing scheme is not the same as investing in succession.' File picture: Andy Gibson.
A €31m fertiliser support scheme, a five-month extension on fuel support and stronger incentives to support farm succession were among the big-ticket items for farmers in this year’s Budget.
The €2.3bn allocated for the Department of Agriculture (DAFM) for 2027 was met with a mixed response from farming and industry organisations.
The headline figure is unchanged in cash terms on last year, representing a real-terms reduction once inflation is taken into account, while overall Government expenditure rises by approximately 6%.
It means that farming has a smaller slice of the overall budget pie, with DAFM's allocation representing just 1.8% of the planned 2027 Government spend.
Among the key measures announced were a €31m fertiliser support scheme, planned to launch before the end of the year to help farmers facing higher fertiliser costs.
Minister of Public Expenditure Jack Chambers also confirmed a five-month extension of fuel supports, with €31.2m earmarked to extend the Fuel Income Support Scheme for farmers and agricultural contractors, alongside related horticulture and fisheries schemes for a further five months in 2026.
Finance Minister Simon Harris announced that incentives to encourage farm succession partnerships will be strengthened in the form of an annual tax credit, which doubles from €5,000 to €10,000, available for five years, for partnerships registered from January 1, 2027. Farmers applying to the Succession Farm Partnership scheme from January 1, 2027, will also no longer have to wait three years before transferring farm assets to their successor.
However, Macra president Josephine O’Neill remained sceptical, stating: “Fixing a flaw in an existing scheme is not the same as investing in succession.”
ICMSA president Denis Drennan backed the sentiment, adding: “Our politicians and civil servants do not appear to understand the succession crisis that’s already looming up in front of Ireland’s flagship farming and food sector.”
€8.4m has been allocated to animal health and welfare, with the VAT on livestock respiratory vaccines also set to fall from 23% to 9%.
The Farmers’ Flat Rate Addition will increase from 4.5% to 4.8% in 2027, compensating flat-rate farmers for VAT on inputs — a measure ICOS livestock and environmental services executive Ray Doyle said was a "fair and sensible outcome for farmers and marts".
An additional €21.6m will support Water Quality and Biodiversity European Innovation Partnerships, helping farmers improve water quality.
The National Sheep Welfare Scheme will receive €22m, while funding for the Straw Incorporation Measure will increase by €4m.
The accelerated Wear and Tear Allowance for Farm Safety Equipment will be extended to December 31, 2029, with 12 additional equipment items becoming eligible.
