A senator has called for "clarity and simplification" of government fuel supports.

Senator Victor Boyhan told Minister for Agriculture, Food and the Marine, Martin Heydon that agriculture and other sectors are under "enormous pressure" from fuel cost increases.

"Minister, you and I know that the pressure on farmers, hauliers, transport operators and those with private and commercial vehicles are under immense pressure," Boyhan said.

"We also know the importance of keeping supply chains flowing so we don’t encounter a rockets and feathers effect."

This month, the government announced a package of measures on fuel costs and to support the transport, farming and fisheries sectors.

Clarity

Senator Boyhan said these measures are an important intervention and an addition to the previously allocated and targeted supports to assist those experiencing real and immediate financial pressures.

However, he told the minister of the significance of setting out a pathway of implementation in simple terms.

"We need simplification and we need absolute clarity," the senator said.

"We also need to manage people's legitimate expectation in relation to these funds and supports."

Senator Boyhan stressed the importance of scheme payments being made in a timely manner and that stakeholders are kept informed as the schemes are finalised and rolled out.

Food production

Speaking in the Seanad, Minister Martin Heydon said government "recognises the exceptional pressure that rising fuel costs" have placed on farmers, contractors and fishers.

He said the further supports announced recently will "benefit both farmers and contractors recognising your central role in sustaining essential food production".

"This is about much more than just one sector, though," Minister Heydon said.

"It's about support for every citizen in the state, because when input costs rise, it puts pressure on the price and availability of food for all consumers.

"Unchecked, it will have a direct impact on the cost of living for all."

Minister Heydon said that by "supporting the agri-food sector and hauliers, and all of those reliant on fuel who pay a role in getting food from farm to fork, we support everyone".

"Approximately 120,000 farmers and 1,500 full time agricultural contractors will be eligible to apply for support," he explained.

"For farmers and agriculture and forestry contractors, this targeted and practical support package based on actual fuel usage last year ensures those who are most exposed to these increases will receive meaningful assistance at a critical time of the year on farms."

Payments

Payments will be made through a single application process, with funding allocated based on historic fuel usage in 2025, the minister said.

"The need for this scheme to be targeted was strongly emphasised in ongoing engagements with the farm representatives, bodies and the farm contractor groups and organisations," he said.

"My department has undertaken intensive preparations, since last week's cabinet meeting, to approve the €100 million fund, to implement a fuel support scheme as quickly as possible."

He said this week the department met with farm organisations and contracting bodies to "discuss in detail the planned implementation of the scheme, and I will shortly update my colleagues and cabinet on the same".

"Timelines will be carefully managed to coordinate with the existing payment schedule and ensure delivery of these supports as soon as it's possible," Minister Heydon added.

Meetings with banks

Minister Heydon said that liquidity and cash flow may arise as issues for some farmers and contractors in the coming months.

"Conscious of this, I've written to the main banking institutions, asking for them to show forbearance with the agri-food and fisheries sector, where cash flow issues are emerging, and continue to support these sectors during periods of financial pressure, with access to the appropriate levels of short-term finance," he said.

"I will be meeting the main banks in the coming days, and will emphasise these points to them also."