A substantial support package for farmers, farm contractors, and fishers has been put in place following close contact with representative bodies in recent weeks. It includes the full removal of all non-carbon excise on green diesel of 7.4 cents per litre, and a further payment equivalent to 20 cents per litre through an income support scheme. These supports, totalling 27.5 cents per litre, exceed by almost 6 cents the entirety of excise (carbon and non-carbon) charged on green diesel prior to the conflict in the Middle East.
Details of the €100 million Fuel Support Scheme were presented to Cabinet this week. The scheme for farmers and farm contractors will provide temporary support for undertakings active in primary production of agricultural products. For farmers and agricultural and forestry contractors, this targeted and practical support package based on actual fuel usage last year ensures that those most exposed to these increases will receive meaningful assistance at a critical time of year on farms. This approach is in line with discussions we have had with stakeholders and ensures that funding is directed where it is needed most, helping to sustain essential food production and rural economic activity. Approximately 120,000 farmers and 1,500 full-time agricultural contractors will be eligible to apply for support. The scheme for farmers and agricultural contractors will be operated by my Department, and subject to the necessary sanctions and state aid processes, will be open for applications in early May.
A separate fuel support scheme for fishers and aquaculture tailored to the specific needs of that sector will be operated separately by Bord Iascaigh Mara (BIM) on behalf of the Department. It will also be calculated on the basis of fuel consumption with specific eligibility criteria for the different categories of fishers. It is anticipated that this scheme will also open in May.
Furthermore, I am also engaging with the main banks asking that they show forbearance with the agri-food and fisheries sector where cashflow issues are emerging and continue to support these sectors during periods of financial pressure with access to the appropriate levels of short-term finance.