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Fuel Subsidy Scheme: Key Information for Farmers and Agricultural Contractors

Government launches temporary subsidy scheme in response to rising diesel prices

Last updated 12 May 2026 | First published 12 May 2026

The Government has announced a €100 million Fuel Support Scheme to help farmers and agricultural contractors manage the severe spike in green diesel prices following recent global supply disruptions. Marked gas oil has risen from €0.97 to €1.80 per litre since February, creating acute pressure during peak seasonal activity.

The scheme provides a direct per litre subsidy, calculated using verified 2025 fuel usage, ensuring support is targeted at those most affected.

This subsidy forms part of a broader package of temporary fuel-related support measures introduced to ease rising operating costs across the agricultural and fisheries sectors including a 3 cent per litre reduction in excise duty on green diesel and a temporary reduction of 2 cent per litre in the NORA levy for a two-month period. In addition, the planned increase in carbon tax has been deferred until October 2026.

Commenting on the situation TaxAssist Accountants Managing Director, Alison McGinley, said “Our clients across the farming and contracting sectors have been under significant pressure due to sustained increases in fuel costs. While this scheme will not fully offset the unprecedented rise in fuel prices, it does provide meaningful short-term relief at a critical point in the farming calendar.”

See added that “For agricultural contractors in particular, where fuel can account for between 35% and 50% of operating costs, the subsidy should help to stabilise margins and maintain essential service capacity across the sector.”

Key Features of the Scheme

Farmers and contractors considering an application should be aware of the following key aspects of the scheme:

Subsidy value is approximately 20 cent per litre of marked gas oil
Reference period is based on 2025 fuel consumption from March to July 2026, aligning with silage, planting and contracting season
Back up documentation required included receipts, invoices and delivery dockets
Eligible sectors include active farmers, agricultural contractors and mixed farm/contractor operators
The portal opened for applications at MyAgFood.ie on 6th May and closes on 27 May 2026

Who qualifies for the subsidy?

As with all government subsidy supports applicants will need to meet a number of eligibility and compliance conditions in order to qualify for support. To qualify, applicants must:

Be actively farming or contracting during 2026
Be fully tax compliant (ROS filings up to date and current tax clearance cert)
Provide verifiable evidence of 2025 green diesel purchases
Comply with Department of Agriculture checks and EU State Aid rules

What farmers & contractors should do now?

At TaxAssist Accountants we are advising farmers and agricultural contractors to prepare documentation and to make an application through the Department of Agriculture, Food and the Marine's online portal at MyAgFood.ie

Applicants should compile all relevant 2025 fuel documentation, including invoices, receipts and delivery dockets, and check that their tax compliance and ROS filing obligations are fully up to date.

It is also advisable to estimate the level of support likely to be available based on 2025 litre usage and to monitor Department of Agriculture, Food and the Marine (DAFM) updates for application dates and detailed guidance.

In addition, businesses should review their cashflow projections for the 2026 season and factor in the expected timing of subsidy payments.

Applications should be made before the portal closed on 27th May 2026.

Last updated 12 May 2026 | First published 12 May 2026

Gearoid Condon, FCA

Gearoid is a highly experienced Chartered Accountant with 25 years of expertise in business consultancy, specialising in supporting SME business owners. Gearoid has worked with start-ups and with established businesses to improve the way they run, with particular focus on growth, efficiency, and structuring operations. Through his experience Gearoid has a strong understanding of the tax system and business regulations in Ireland.

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