The Department of Agriculture, Food and the Marine (DAFM) has said it is currently focused on ensuring that all valid claims under the Fuel Income Support Scheme are "processed and paid in a timely manner".

Last week, it was confirmed that the first batch of payments under the scheme totalling over €20 million to almost 30,000 farmers and contractors had commenced.

The average payment for a contractor is approximately €4,000 in this batch of payments, with farmers receiving over €600.

The scheme followed a spike in fuel prices in the spring and was designed to support applicants for the five-month period covering March to July 2026.

Payment is based on the equivalent of five months usage of the total litres of marked gas oil (MGO) used by an applicant in 2025, multiplied by 20c.

Fuel scheme

The department confirmed that the total final payments under this scheme will be approximately €27 million.

However, the scheme had been allocated a budget of over €80 million.

The Irish Creamery Milk Suppliers' Association (ICMSA) president claimed that the scheme "failed to recognise" periods of heaviest fuel usage.

Denis Drennan added that "lower fuel usage during the shoulder months of the year is artificially pushing down the average figure for the March to July period".

He called for a review of the decision, adding that the €58 million remaining from the scheme must be retained within the farming sector and paid to farmers.

A spokesperson for DAFM told Agriland: "Payments under the scheme have been made at the rate indicated in the scheme terms and conditions and in line with the sanction received from the Department of Public Expenditure Infrastructure Public Service Reform and Digitalisation".

"Applications have closed for the Fuel Income Support Scheme.

"No new applications will be accepted except in situations where due to exceptional and unforeseen circumstances e.g. a sudden medical emergency, an applicant was unable to apply at the time.

"Any such applications must be evidenced to support their late application," they added.