Minister Heydon announces €100 million fuel support package for farmers, contractors and fishers

Minister for Agriculture, Food and the Marine, Martin Heydon TD, today announced a comprehensive €100 million Fuel Subsidy Support Scheme to assist farmers, agricultural contractors and fishers facing unprecedented increases in fuel costs. The payments will cover the months of March up to the end of July which coincides with peak fuel usage on farms.

The package comes in response to the sharp rise in the price of Marked Gas Oil (MGO), commonly known as green diesel, which has nearly doubled since February due to ongoing geopolitical instability in the Middle East. Prices have risen from €0.97 per litre in late February to €1.80 per litre in recent weeks, placing severe financial pressure on key sectors of Ireland's food production economy.

Targeted support during peak season

The scheme will provide €20 million per month in supports, with funding directly linked to fuel usage last year to ensure those most impacted by the fuel price increase receive the greatest assistance.

Farmers and agricultural contractors will benefit from a support rate equivalent to approximately 20 cents per litre of MGO (marked gas oil) used based on verified fuel consumption in 2025. The funding will be distributed proportionally a point that was strongly emphasised in ongoing engagements with the representative farm and farm contractor groups.

Supports for farmers and contractors

Approximately 120,000 farmers and 1,500 full-time agricultural contractors will be eligible to apply for support. Payments will be made through a single application process, with funding allocated based on fuel usage last year.

Eligibility will require applicants to demonstrate active farming or contracting status, tax compliance, and verifiable fuel usage. A system of checks and inspections will be implemented to ensure accountability. EU state aid cover will also be necessary.

Dedicated support for fishers and specialist sectors

Up to €5 million per month of the fund will be used to support fishers and other sectors affected such as forestry and specialist horticulture. Fishers are facing acute challenges, exacerbated by very high fuel costs. A tailored fuel support scheme for fishers will be developed, subject to EU State Aid requirements.

Minister's statement

Announcing the package, Minister Heydon said:

"This Government recognises the exceptional pressure that rising fuel costs are placing on our farmers, contractors and fishers. This targeted and practical support package ensures that those most exposed to these increases will receive meaningful assistance at the most critical time of year."

"We have worked intensively with representative stakeholder groups in recent times, and I believe that this represents a fair and effective scheme based on actual fuel usage, taking account also of the vital work played by farm contractors in our farming systems. This approach ensures that funding is directed where it is needed most, helping to sustain essential food production and rural economic activity."

Ministers of State at the Department Noel Grealish, Michael Healy-Rae and Timmy Dooley, also welcomed the supports announced on Sunday following an intensive period of engagement with the stakeholder groups in the sectors affected.

Implementation and next steps

The Department of Agriculture, Food and the Marine has commenced intensive preparations to implement the scheme as quickly as possible. Given the scale and complexity timelines will be carefully managed to ensure efficient delivery. Stakeholders will be kept informed as the scheme is finalised and rolled out.