The Fuel Income Support Scheme has been introduced as an income support to assist farmers and agricultural/forestry contractors facing unprecedented increases in fuel costs.

The scheme opens today (Wednesday, May 6) for applicants.

This is a targeted income support calculated on marked gas oil (MGO) or ‘green diesel’ use in the agricultural and forestry sectors.

The Department of Agriculture, Food and the Marine (DAFM) has published further information on the opening of the scheme, eligibility, what supporting documents are needed and when and how payments will be made.

Who is eligible for the scheme?

Farmers and agricultural/forestry contractors are eligible to apply.

Farmers

For the majority of farmers, they must have submitted a Basic Income Support for Sustainability (BISS) application in 2025 and must have been deemed an active farmer in 2025.

Farmers must continue to farm in 2026 and submit a BISS application.

Farmers that don’t have to submit a BISS application, for example pig or poultry farmers, must have been registered with DAFM as a producer in 2025 and continue to do so in 2026.

New entrants who may not have a 2025 application can apply once a BISS 2026 application is made and they can demonstrate that they are actively farming.

They may be asked to supply some details showing they are actively farming to support their application.

Farmers in a farm partnership registered with the department are eligible to apply.

Applications should be made under the farm partnership number.  Receipts can be in the name of the farm partnership or any of the members of the partnership.

Contractors

A contractor must provide agricultural or forestry services, be registered for VAT and be tax compliant.

They must have operated as an agri/forestry contractor in 2025 and continue to operate as an agri/forestry contractor in 2026.

If someone is registered for VAT in the state but carries out agricultural contracting in Northern Ireland as well as the Republic of Ireland, they can apply but the estimate of MGO usage supplied can only include work carried out in the Republic of Ireland.

If someone is primarily a farmer, but also does some contracting in the winter but is not VAT registered as a contractor, DAFM said they can apply as a farmer and receive payment.

Once the contracting element is agriculture-related, they can claim for MGO usage as a farmer.

Where a contractor has used MGO in 2025 for non-agricultural uses they should ensure that these amounts are excluded from their claim.

DAFM said the estimate of litres of MGO used in 2025 should be solely for agricultural purposes and checks will be carried out to validate claims.

Applicants that have only commenced contracting in 2026 can apply for the scheme.

New entrants will be asked to supply additional information regarding the type and scale of the business. Applications will be examined on a case-by-case basis.

When is the scheme open and how do I apply?

The scheme opens on May 6 and will close on May 27 this year.

A farmer under the scheme can apply in one of the following ways.

An applicant who has made a 2025 or 2026 BISS application or is registered on MyAgFood.ie, can submit the claim via this system.

For an applicant who does not submit a BISS application and is not registered on MyAgFood, they can download the application form.

This form for farmers can be found on the department's website, and completed application forms can be submitted to fuelsub@agriculture.gov.ie

No receipts will need to be submitted as part of the application; however, they must be available for inspection on request.

A contractor can apply by downloading the contractor application form on the department's website and submitting it via email.

Contractors will be required to submit their completed application along with receipts or an account summary from their MGO supplier(s) for the purchase of MGO consumed in 2025 for farming activities.

When and how will payments be made?

Payments will issue under the scheme as soon as possible after the closing date, DAFM said.

A single payment will be made directly to an applicant's bank account.

In the event that the scheme is oversubscribed, a pro rata reduction will apply to all applicants under the scheme.

The minimum payment under the scheme is €100. 

The maximum payment is not yet determined but will be dependent on overall application levels and cannot exceed state aid limits, DAFM said.

What activities are eligible?

Activities under the scheme must be agriculture and/or forestry-related.

DAFM has provided examples of eligible agriculture and forestry activities.

Agricultural: activities include the production of agricultural products, such as livestock rearing and fattening; milk production, the growing of fodder crops (silage, hay), tillage and energy crops; and the maintenance of the agricultural areas.

Specific activities include on-farm hedge and drainage maintenance, construction and maintenance of farm roadways and farm buildings, on-farm crop drying, heating of farm buildings and powering back-up generators.

Forestry: the establishment, management and harvesting of forestry. For example, site preparation and clearance for planting; crop thinning and/or harvesting; and the creation and management of forestry roads and firebreaks.

Non-agricultural activities considered ineligible:  

Turf cutting, drying or collection;
Grass or hedge-cutting in public or amenity areas - motorways, sports clubs, golf courses;
Construction or maintenance of non-farming buildings and structures - dwelling house, commercial and retail buildings, quarrying, road building;
Road haulage.

What supporting documents are needed?

Applicants can be asked to provide receipts or an account summary from their MGO supplier(s) for the purchase of MGO consumed in 2025 for farming activities.

In the case of applicants who only purchase MGO from a supply once or twice a year, receipts dating back to October 2024 will be accepted.

Applicants may be required upon request to submit documentation or invoices verifying agricultural or forestry contracting service provided to customers in support of their claim.

The person or the entity that purchased the MGO must be the applicant and therefore their name and address must be detailed on the receipt or account summary.

MGO purchased for farming activity during 2025, from a garage forecourt in the Republic of Ireland, is eligible providing the applicant can provide a copy of the receipts if requested.

Applicants wishing to contact the department regarding the Fuel Income Support Scheme, can ring the direct payments helpline at 057-8674422 or email fuelsub@agriculture.gov.ie.