Watch: 100ac of silage set to cost €2,855 extra as diesel soars
The current situation with green diesel has left farmers wondering what to prioritise in 2026 - the tax bill or silage for livestock?
According to Ann Gleeson Hanrahan, managing director of the Association of Farm & Forestry Contractors in Ireland (FCI) farmers may have to brace themselves for significant price rises this year.
The managing director of the FCI said that since the Middle East conflict unfolded in February, the cost of harvesting 100 acres of silage ground with a full self propelled unit has risen by €2,855 plus vat per day.
Gleeson Hanrahan told Agriland that a single tractor is costing "€237 extra per day in diesel costs".
The managing director said that the contracting sector burns 350 million litres of diesel per year, and with the way prices currently stand, the sector is looking at an extra cost of €224 million in 2026.
This is before the additional costs of depreciation, maintenance, insurance, labour, and more are added on.
"Down the line, whether people realise it or not, this is going to affect food security and food cost." said Gleeson Hanrahan
She noted that in the last economic downturn, contractors were able to 'slowly absorb' costs, 'effectively acting as the bank for farmers'.
However the managing director said that will not be the case in 2026, stating that 1% margins will prevent them from absorbing the costs.
The current climate in 2026 will leave contractors in a position where the money from today's job will be needed for tomorrow's fuel.
This has sparked concerns that many farmers are already producing for the cost of production and will not be able to absorb the costs either - which has the potential to cause disruption in the food chain.
Green diesel
The government confirmed a reduction of 3c/L to the cost of green diesel, as well as a cut of 2c/L to the National Oil Reserves Agency (NORA) levy.
This follows an approximate price increase of 73c/L for green diesel over the last month.
In the same package, petrol was reduced by 15c/L while auto diesel was reduced by 20c/L.
Meanwhile the government also increased the maximum repayment allowable under the Diesel Rebate Scheme from 7.5c/L up to 12c/L of diesel for hauliers and passenger bus operators.
FCI is now calling on the government for a 50c/L rebate in a bid to protect the industry.
According to Gleeson Hanrahan contractors are the 'forgotten race'.
She said: "We don't ever get that support that we need.
"We need that support to get us through this volatile time".
The managing director has warned that contractors can manage with €1 litre, but are unable to work with these current prices.
The organisation has said that intervention is essential for the Irish food supply as well as jobs within the sector.
