A sharp rise in fuel costs because of the Middle East conflict could see the cost of producing silage "double" a farming organisation warned today (Monday, March 23)

Ahead of an expected meeting later today between coalition leaders to sign off on a package of support measures to offset rising fuel prices, the Irish Cattle and Sheep Farmers' Association (ICSA) has said "token" measures will not be enough.

Instead ICSA president, Sean McNamara, has called on the government to "take decisive action" to offset the surge in fuel and fertiliser costs.

“Fuel prices have surged in a matter of weeks, with agricultural diesel up by as much as 65-70% and road diesel up around 30%.

"These are not marginal increases that farmers can absorb, they go to the very heart of whether it is viable to produce food at all,” he added.

Costs

According to the ICSA farmers are now heading into a season "where the cost of producing silage, keeping livestock, and growing crops could double".

McNamara added: "This is an extraordinary situation and it demands a serious response from government.”

"If current trends continue, we will see reduced stocking rates and lower levels of production. This will have direct consequences not just for farm families, but for food supply and prices.”

The ICSA has urged coalition leaders to implement a targeted package of measures, it is calling for:

A "significant reduction" in excise on green diesel and a suspension of carbon tax on agricultural fuel;
Immediate engagement at EU level to address fertiliser supply issues;
Recognition of primary food producers as a "critical sector requiring specific support".

Fertiliser supply

Separately Fertilisers Europe - which represents 15 fertiliser manufacturers in the European Union and nine national fertiliser associations - has said that "European producers are working to maintain reliable supply during this period of heightened uncertainty".

However the organisation has also warned that if the situation in the Middle East were to persist or further exacerbate then "EU institutions should consider reinforcing aid and assistance to European farmers, while supporting the resilience of Europe's fertiliser industry".

"Ensuring farmers’ access to fertilisers goes hand in hand with maintaining a stable, competitive European production base that can serve agriculture in the long-term," the organisation said.

Last week Minister Michael Healy-Rae told the Dáil that it was "understood that there may be sufficient fertiliser stocks to last until mid-April" in Ireland.