My Department continues to monitor trends in agricultural input costs as reported in the Central Statistics Office monthly Agricultural Price Indices release, including Energy costs, comprising Electricity, Motor Fuels and Lubricants, and Fertiliser costs, with nitrogen-based fertilisers being closely related to energy prices and the cost of natural gas.
Geopolitical crises in recent years and the current conflict in the Middle East have entailed significant volatility in energy markets and this resulted in increased costs pressures for the agri-food sector, which are a risk to viability and competitiveness.
The Government recognised the exceptional pressure that rising fuel costs are placing on our farmers, contractors, and fishers, and has been in close contact with representative bodies in recent weeks. A substantial support package has been put in place, with the full removal of all non-carbon excise on green diesel of 7.4c/l. I announced a further income support payment worth up to 20c/l through the €100 million Fuel Support Scheme, designed to assist farmers, agricultural contractors and fishers facing the significant increases in fuel costs. Further information is available at: www.gov.ie/en/department-of-agriculture-food-and-the-marine/services/fuel-income-support-scheme/.
With regard to fertiliser supply, my Department tracks the stocks of fertiliser available in Ireland through the National Fertiliser Database, which was established in 2023 by this Government. Ireland and other Member States await the initial draft of the EU Commission Fertiliser Action Plan in the first half of this year.
In relation to costs, the Government has supported the proposed inclusion of a mechanism to allow for the suspension of the Carbon Border Adjustment Mechanism (CBAM), which adds a carbon levy to the import of third country nitrogen fertilisers and urea, in the event of serious and unforeseen disruptions. The Department of Finance continues to engage with the EU Commission in this regard.
My Department will continue to engage with key agri-food stakeholders on energy security and supply matters over the coming months in response to the evolving situation.