Budget 2027 provides "some relief" for farmers, but more is needed to improve farm viability, according to the Irish Cattle and Sheep Farmers' Association (ICSA).

Edmond Phelan, ICSA rural development chair, said Budget 2027 contains "some welcome measures for farmers".

However, he claimed the lack of any increase in the overall allocation to the Department of Agriculture, Food and the Marine (DAFM) "raises serious questions about whether the government is doing enough to support farm viability".

"Against that background, it is difficult to see how the government can deliver the level of support farmers need when there is no increase in the overall allocation to the Department of Agriculture," he said.

ICSA

While Budget 2027 provides "some short-term relief" on rising fuel costs, Phelan said these measures do not go far enough to help farmers.

"The extension of the Fuel Income Support Scheme will provide some welcome breathing space for farmers facing very high fuel costs.

"However, we have to question why €31.2 million has been allocated for the further five-month period when around €58 million of the original allocation remained unspent.

"Farmers need more than temporary relief. Fuel has gone from being a manageable part of the cost of running a farm to becoming a major and increasingly damaging cost," he said.

Phelan welcomed that reduced fuel excise rates will remain in place until the end of February, along with the suspension of further carbon tax increases.

However, he warned the phased restoration of excise from March to June next year "means that farmers will continue to face rising fuel costs".

"We need a lasting solution that gives farmers greater certainty over what it will cost to run their farms," he added.

Budget

In his initial reaction to funding allocations for national farm schemes, Phelan said the €22 million allocation for the National Sheep Welfare Scheme is "already a concern".

"This is the same allocation as last year, when payments were cut because the scheme was oversubscribed. That is not good enough for a low-income sector that needs support to remain viable.

"If a scheme is oversubscribed, that should be a signal that more funding is needed. It should not result in farmers receiving less," he said.

Phelan said the removal of the three-year holding period for Succession Farm Partnerships and the increase in the tax credit from €5,000 to €10,000 were positive steps.

He urged the government to take more action to support generational renewal.

"These measures are welcome, but the starting point has to be viable farms.

"The next generation will not take over farms if there is no sustainable income from farming," he said.

Fertiliser

The ICSA welcomed the €31 million national top-up to the EU Fertiliser Support Scheme, bringing the overall fund to almost €46 million.

"Fertiliser is a fundamental cost for farmers and this support is welcome, but the scheme needs to be rolled out quickly and farmers need clarity on the detail and when payments will be made," Phelan said.

The association also welcomed the extension of accelerated wear and tear allowances for farm safety equipment to the end of 2029, including the addition of 12 further items, as well as the increase in the farmer flat-rate VAT addition to 4.8%.

Phelan said ICSA would examine the full detail of the Budget measures before making a final assessment.

"There are positive measures in Budget 2027 and we welcome those that will make a practical difference to farmers.

"Farmers cannot build a future on temporary relief and underfunded schemes," he added.