The Association of Farm and Forestry Contractors in Ireland (FCI) has welcomed the government's fuel support scheme for contractors and farmers.

Minister for Agriculture, Food, and the Marine, Martin Heydon today (Wednesday, April 24) announced the full details of the €100 million scheme.

The minister confirmed that the scheme will open for applications from next week, with payments expected by the end of June.

Farmers and contractors will be eligible to receive a one-off lump-sum payment of approximately 20c/L (€200 per 1,000 litres) of green diesel used in 2025, on top of the 7.4c/L excise tax reduction.

FCI

The FCI said that details of the new scheme follow a series of meetings between the Department of Finance, Department of Agriculture, Food, and the Marine (DAFM), and contractor representatives.

During those meetings, the FCI said the impact of the significant increases in fuel costs on the survival of the sector were "clearly highlighted".

Up to 1,500 full-time agricultural and forestry contractors are expected to be eligible for this fuel income support scheme.

Once the scheme is open, contractors will be eligible to receive payments to cover the months of March 2026, up to the end of July 2026 which includes the first cut silage harvest period.

“The combination of this new Fuel Income Support Scheme and the reduction in excise duty on green diesel, which together equates to a reduction of €274 for every 1,000 litres of green diesel, is very welcome for our agricultural and forestry contractor sector at a time of very significant inflation cost pressures," Ann Gleeson Hanrahan, FCI managing director, said.

"While this government initiative is very welcome, it only goes part of the way to alleviating the huge inflation costs increases, in terms of fuel, lubrication oils, AdBlue and replacement machinery costs," she added.

Fuel support scheme

The FCI is urging its members to plan now for the support scheme which will be open for applications for a 3-4 week window.

Payments under the scheme will be in the form of a single payment covering the full period, rather than monthly instalments.

"We are now urging all FCI members to prepare now for the introduction of the Fuel Income Support Scheme for agricultural and forestry contractors, where we understand that the maximum payment is expected to be €50,000 based on a self-declaration from 2025 receipts or statements from oil suppliers," Gleeson Hanrahan added.

Contractors

The FCI managing director said the government’s recognition of the essential role of the contractors by being included in this scheme, is "a very significant milestone" for the sector.

"FCI will continue work with the newly-formed Department of Agriculture, Food, and the Marine's Contractor Working Group, on behalf of agricultural and forestry contractors, to develop training, support and taxation measures for our sector.

"Our teams will continue to support new opportunities that may exist through wider use of agricultural and forestry contractor services to support a sustainable agriculture and forestry sector," Gleeson Hanrahan said.