Silage season just weeks away and costs to jump €2,855 a day over fuel crisis, warn agri contractors

THE ASSOCIATION of Farm and Forestry Contractors in Ireland (FCI) have secured a meeting with Tánaiste and Minister for Finance Simon Harris, and Minister for Agriculture Martin Heydon this Wednesday evening.

FCI say with silage prices jumping by €2,855 a day due to fuel crisis, "No contractors equals no silage, no harvesting".

The FCI will voice the serious concerns of their members, and propose solutions that government could implement in order to support the agricultural contracting and farming sector during this period of extreme uncertainty and financial strain.

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“The agricultural contracting sector is facing unprecedented cost pressures due to extreme fuel price volatility.

Immediate, targeted intervention is required to ensure the continuation of essential farming operations and to protect rural economies,” said an FCI spokesperson.

Ann Gleeson Hanrahan (FCI Managing Director) will also hand deliver to the Tánaiste, the list of requests compiled on Saturday night at the public meeting in Portlaoise by the multi-sectoral group.

The IFA will also be in attendance at this meeting. IFA President Francie Gorman said the want the Government to review the decision of last week and "properly address fuel costs for farmers and agri contractors". 

"The excise duty reductions announced did very little to lower the cost, with a temporary five cent reduction for the sector.

“This is simply nowhere near enough to address the issue for the farming sector as agri-diesel has increased by over 50% in recent weeks. The five cent reduction amounts to a 3% price reduction,” he said. 

Mr Gorman said without Government action, the increased cost of agri diesel will drive up costs on farmers and agri contractors significantly.

"There is no room with current margins to absorb these additional costs. The inevitable result of this current fuel shock will be economic inflation, and food is massively exposed to the cost of fuel and energy. Consumers need to be aware that carbon tax is contributing to higher food costs,” he said. 

“Carbon tax currently adds 17cpl to agri diesel and is due to up by a further two cent again next month. As agricultural machinery has no alternative to using diesel, the tax cannot achieve its stated objective of encouraging the use of alternative energy,” he said.