The Department of Agriculture, Food and the Marine (DAFM) has confirmed that payments received from the fuel support scheme will be subject to "tax rules".

Farmers, agricultural and forestry contractors had until midnight on Tuesday, June 2 to make an application to the Fuel Income Support Scheme.

The rate of payment is anticipated to be 20 cent per litre of green diesel used, based on verified fuel consumption in 2025.

The payments will cover the months of March up to the end of July.

It has been estimated that around 120,000 farmers and 1,500 full-time agricultural contractors will be eligible to apply for support.

According to the Minister for Agriculture, Food and the Marine, Martin Heydon, there has been "a strong response" to the support scheme.

The minister has previously said that average contractor could see "a payment of more than €6,000 with larger contractors potentially receiving multiples of that" from the Fuel Income Support Scheme.

He also indicated that "for farmers the average payment is in the region of about €650.”

Fuel scheme

According to DAFM the Fuel Income Support Scheme "has been introduced as a targeted income support to assist farmers and agricultural/forestry contractors facing unprecedented increases in fuel costs".

In a statement to Agriland the department also outlined: "Tax liability is a matter for the Revenue Commissioners but payments under the scheme are a direct income support and hence will be subject to the same tax rules as other support payments issued by the Department of Agriculture, Food and the Marine". 

In order to be eligible for the scheme farmers and agricultural and forestry contractors had to prove that they were:

Actively farming in 2025, or started actively farming in 2026;
Have continued to actively farm in 2026;
In the case of contractors, be VAT registered and tax compliant and be carrying out agricultural contracting in primary production (including forestry) on farms.