The Association of Farm & Forestry Contractors in Ireland (FCI) has said it is unable to provide a fixed quote for any increase in the cost of contracting work due to the uncertainty surrounding the price of agricultural diesel.

Speaking to Agriland, FCI managing director, Ann Gleeson Hanrahan said that the sharp rise in fuel costs is a major challenge.

Gleeson Hanrahan said: "Recent changes have resulted in approximately a 50% increase in the cost of green diesel, a rise that is hugely disproportionate compared to the roughly 10% increase in road diesel."

The managing director highlighted the uncertainty surrounding the price of agricultural diesel, stating that the diesel market has not yet stabilised, as prices continue to fluctuate daily.

Gleeson Hanrahan said this is 'making it impossible to predict fuel costs with any accuracy'.

As it stands, the 50% increase in fuel costs will add another €1,500 per day to contractors daily fuel bill, based on a usage level of 3,000 litres per day.

Cost breakdown

Contractors harvesting an average 100 acres per day will have an additional fuel cost of a minimum of €15/acre.

Considering Irish contractors use an estimated 350 million litres ofagricultural diesel each year, the rise will translate to an additional €175 million cost to the sector annually, according to the association.

FCI have calculated the total operating costs of a single tractor per week for 2026, based off of a 40-hour work week.

It is worth noting, that during the silage season, the hours worked nearly triple, with the majority of contractors needing numerous machines to get through the workload before the weather turns.

Even if a contractor was only doing 40 hours a week, but had five tractors on the road (e.g one tractor each for a mower, tedder, rake, baler, and wrapper), their tractor operating costs would be sitting at €21,720/week.

Gleeson Hanrahan said: "This is an enormous financial burden on a sector that already faces high machinery costs, labour expenses, insurance, and ongoing maintenance.

The managing director said that the cost of running a contracting business has 'risen dramatically', leaving tight margins of approximately 1% for operators.

Contractor concerns

Gleeson Hanrahan highlighted a number of further concerns to the current diesel situation.

One of which is the potential risk of diesel shortages if the conflict in the middle-east continues.

She said if a shortage did arise, agricultural diesel would have to be 'ring-fenced' for the farming and contracting sector.

The managing director said: "Protecting fuel supplies for agriculture is critical in order to avoid potential food shortages."

Gleeson Hanrahan also rose the issue of payment, stating that contractors can not afford to absorb delayed payments.

She said: "During the last major economic collapse, manycontractors effectively acted as the bank for farmers by carrying unpaid invoices for extended periods."

Gleeson Hanrahan called for government intervention on the issue to ensure essential agricultural services can continue without disruption.