The Irish Grain Growers Group (IGGG) has described the government’s fuel measures as “discouraging” to tillage farmers, and suggested a range of options to help the industry.

In a statement, it said: “A 3 cent (per litre) cut to green diesel is discouraging to tillage farmers and contractors at the very moment they need real support.

“At the same time, the important fertiliser used to grow our staple crops has risen 25-30%.”

The government yesterday (Tuesday, March 24) announced cuts to mineral oil tax (MOT) for petrol, diesel and green diesel and a cut to the National Oil Reserves Agency (NORA) levy.

The measures took effect from midnight and will remain in effect until May 31.

IGGG added that “fuel isn’t optional in spring - it’s essential”.

“This will not address what will ultimately lead to food inflation that the consumer ends up paying for.”

The group also said that the government “must go back to the drawing board to offset costs to the farmer and in turn the consumer”.

IGGG suggested a number of options for the Tánaiste and Minister for Finance Simon Harris to examine.

These include:

Suspension of carbon tax on green diesel;
Introduction of a diesel rebate of 12c/L;  
Increasing the excise cut to green diesel from the announced 3c/L to 10c/L;
Fuel linked direct payment - €20/ha to compensate for the extra production costs.

Clive Carter, secretary of IGGG, told Agriland: “Because tillage farming has such a low carbon footprint, in many cases it’s a carbon sink, suspension of carbon tax would be a way of encouraging more tillage.

On the subject of increasing the excise cut, Carter suggested “just an extra 7c/L to give the extra support to farmers”.

He added that prices are “going up nearly by the hour in some places”.

“Personally, I was holding off topping up tanks until something was announced.

"It’s debatable whether I made the right decision or not.”