Agriculture Minister Martin Heydon has announced a €100 million fuel support scheme aimed at farmers, contractors and fishers facing “exceptional pressure” from rising fuel costs.
In a Department of Agriculture press release published today, the Fine Gael Minister said the scheme is intended to provide “targeted and practical support” and is expected to open for applications before mid-May for a period of three to four weeks.
“The Government recognises the exceptional pressure that rising fuel costs are placing on our farmers, contractors and fishers,” he said.
“Subject to the necessary sanction and state aid processes, it is planned to open the scheme for application before the middle of May for three to four weeks, with payment to issue thereafter.”
Heydon said the scheme would be based on actual fuel usage and aimed at those most affected by increases in the cost of market gas oil.
“This targeted and practical support package based on actual fuel usage ensures that those most exposed to these increases will receive meaningful assistance,” he said.
“This approach is in line with discussions I have had with stakeholders and ensures that funding is directed where it is needed most, helping to sustain essential food production and rural economic activity.”
The Minister also confirmed that farm contractors would be eligible for direct support under the scheme for the first time.
“It will also for the first time provide a direct support to farm contractors, recognising the vital work they play in our farming systems,” he said.
“I am also conscious of liquidity and cashflow concerns in the sector at this time and am engaging with the main banks in this regard.”
Under the scheme, farmers and agricultural contractors will receive support equivalent to approximately 20 cent per litre, or €200 per 1,000 litres, based on their verified actual fuel usage in 2025.
Applicants will receive a single payment covering the five-month period from March to the end of July, rather than monthly payments. They will be required to submit details of their fuel usage for the 12 months of 2025 based on receipted expenditure, with self-declarations subject to risk-based checks.
Eligibility is limited to marked gas oil used in the primary production of agricultural products, including forestry. Contractors must also be VAT registered, tax compliant, and providing services related to on-farm production.
The scheme includes a minimum payment of €100, while the maximum payment will depend on overall demand but remain below limits set under a temporary State Aid framework that is yet to be published.
A separate fuel support scheme for fishers and aquaculture operators will be administered by Bord Iascaigh Mhara on behalf of the Department, with payments also based on fuel consumption and sector-specific criteria. This scheme is also expected to open in May.
The €100 million package is in addition to the removal of all non-carbon excise on green diesel, valued at approximately 7.5 cent per litre. The combined supports are estimated at around 27.5 cent per litre, exceeding the total excise previously applied to green diesel before the conflict between the US, Israel and Iran.
Fuel costs have been a significant input expense for agricultural and fishing operations, with increases in market gas oil prices affecting production costs across the rural economy, leading to significant fuel protests in recent weeks.