ICSA Rural Development chair Edmond Phelan has said the Government's fuel support package fails to reflect the scale of the crisis facing farmers and agricultural contractors. "Deferring the planned increase in carbon tax is a practical step, but the overall level of support falls well short of the costs now being faced on the ground. Green diesel prices have risen from around €0.97 per litre in February to approximately €1.80 in recent weeks. The speed and volatility of these increases are making even short-term planning very difficult for farmers," he said.

Continuing, Mr Phelan said the pressure on farm businesses is now being felt in very real terms. "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. In another case, a young farmer trying to get established said 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. Even allowing for the proposed supports, equivalent to around €0.20 per litre, that still leaves a shortfall of close to €2,000 per day that must be absorbed."

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

 Mr Phelan 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."

 He said 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. 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."