The Irish Cattle and Sheep Farmers' Association (ICSA) has said the government’s fuel support package fails to reflect the scale of the crisis facing farmers and agricultural contractors.

The association acknowledged that deferring the planned increase in carbon tax is a practical step, but claimed that the overall level of support falls well short of the costs now being faced on the ground.

ICSA Rural Development chair, Edmond Phelan said: "Green diesel prices have risen from around 97c/L in February to approximately €1.80 in recent weeks.

“We are hearing directly from contractors and farmers about the scale of the increases involved.

"One contractor reported that the cost of filling a diesel tank has risen by more than €4,000 compared to last year, a cost that inevitably feeds back to farmers," Phelan added.

The ICSA chair also said that a young farmer who is trying to get established informed him that ploughing and cultivation costs were up by over €5,000 on last spring.

“In silage operations alone, daily fuel costs have increased from around €2,300 last year to €4,800 this year," Phelan continued.

"Even allowing for the proposed supports, equivalent to around 20c/L, that still leaves a shortfall of close to €2,000 per day that must be absorbed.”

Cashflow amid fuel crisis

Phelan stressed that cashflow is now emerging as another major issue.

“Many farmers and contractors are no longer being extended the same level of credit and are being asked to pay for fuel up front," he said.

"Given the scale of these increases, that will simply be impossible for many.”

The ICSA said that rising fuel, fertiliser and other input costs are also having a direct impact on farm decisions.

“This is no longer a short-term pressure. When fuel, fertiliser and other input costs are combined, many farmers are now questioning whether they can afford to keep producing beef and lamb or even put crops in the ground this season," Phelan said.

The farmer repesentative explained that while the €100 million package will provide some relief, it only covers a fraction of the extra costs facing the sector.

“The excise reductions will be felt across the economy, but they are general measures and do not reflect the scale or timing of fuel use in farming and contracting, where demand is highest during peak production periods," Phelan said.

"At current cost levels, the package is little more than a sticking plaster over a gaping wound, and many farmers are now seriously questioning their ability to continue producing.”