Agriculture in Ireland and the EU is vulnerable to shocks in the availability and price of inputs, in particular fertilisers and fuel, due to limited internal production capacity and a reliance on imports. While Ireland has limited direct trade with the Middle East region for agricultural inputs, there is a risk of exposure to disruption in international supply chains and consequent pressure on fertiliser prices and other inputs.
My Department monitors trends in agricultural inputs and outputs. The Central Statistics Office (CSO) reports monthly on the Agricultural Output Price Index, which tracks the prices paid to farmers for their produce, and the Agricultural Input Price Index, which tracks the prices paid by farmers for purchases of goods and services. The latest data up to March 2026 captures the initial impact of the events in the Middle East, with the input price index rising 4.9% as compared to February. There were significant increases in the month in the price indices for fertilisers (12%) and motor fuel (35.2%).
The Government recognises the exceptional pressure that rising fuel costs are placing on our farmers, contractors, and fishers, and a substantial support package has been put in place following close contact with representative bodies in recent weeks (including the named organisation). 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. The Fuel Income Support Scheme opened for applications from farmers and agricultural contractors on 6th May and remains open until 27th May.
The CSO reports these costs on a monthly basis and my Department will continue to monitor these costs and their effects on farm income and viability.