FCI Statement on Launch of Fuel Income Support Scheme

The Association of Farm and Forestry Contractors in Ireland (FCI) welcomes the launch today of the government’s fuel income support scheme. However, the association is keen to stress that this hard-fought relief is only a splash in the pan for farm and forestry contracting, a sector which is becoming less and less viable every year.

The implementation of the fuel income support scheme marks the first time in the history of the state that farm and forestry contractors have received direct financial support from the government, which highlights the seriousness of the threat facing our sector.

FCI is keen to stress to that diesel is a cost, it is not all of the cost.

“In addition, recent wage increases, driven by government policy relating to minimum wage and pension requirements, have had a particularly significant impact on our sector. At the same time, the cost of key consumables - including electricity, spare parts, filters, oil and AdBlue - have all risen sharply and show no indication of easing. Furthermore, the cost of acquiring and insuring new machinery has also increased to unprecedented levels” said Ann Gleeson Hanrahan, managing director of FCI.

“For many years, we have absorbed rising costs in recognition of the strong relationships we share with our valued customers. However, we have now reached a point where continuing to do so is no longer sustainable. As a result, we have been left with no alternative but to implement price increases beyond those originally outlined in our 2026 Contractors Price Guide” she added.

There is a lot of misunderstanding within our customer base about how contractors should approach invoicing this season. Some farm organisations are urging their members to demand that the contractor passes on the rebate, however, farm and forestry contractors will not know the amount per litre that they will receive until the scheme closes in three weeks and the total number of successful applicants is known by the department.

FCI National Chairman Norman Egar explains the situation on the ground for Irish contractors:

“Our members have recently been experiencing instances of misunderstanding from their clients. In some cases, customers are referencing a figure of a 20 cent per litre rebate that the contractor is going to get. But that is purely speculation at this point, because if the scheme is oversubscribed then the actual payment to contractors will be significantly less than 20 cent per litre. There is only 100 million in the pot and that has to stretch across a couple of different sectors.”

FCI Managing Director Ann Gleeson Hanrahan says:

“Agriculture/Forestry contractors and farmers have a symbiotic relationship in rural Ireland. For both groups to survive it is important that farmers understand the uncertain nature of the Income Support Scheme. The scheme is offering payments of up to 20 cent per litre, however, if the scheme is oversubscribed, the actual payment to contractors will be significantly less than 20 cent per litre. Contractors will not know the amount they will receive until the scheme is closed and the calculations are made by the department.”

“FCI are recommending that, in order to survive the crisis and have a sustainable future for their business, their members should increase their 2025 prices by 20%” she concluded.

The price of new machines and the skilled labour to operate them has rapidly increased in recent times