The Irish Cattle and Sheep Farmers' Association (ICSA) has demanded the abolition of carbon tax for green diesel in Budget 2027.

The farm organisation has set out a list of demands on fuel ahead of next week's budget.

Edmond Phelan, the association's rural development chairperson, said that the rising cost of fuel is "pushing farmers to the edge", and that that the cost of carrying out basic farm operations is "becoming increasingly unsustainable".

"Farmers are being squeezed from every direction and fuel is now becoming a crippling cost of producing food," Phelan said.

"Budget 2027 must deliver real action to bring down the cost of fuel and protect the viability of food production," he added.

"The tractor still has to run, livestock still have to be moved, slurry still has to be spread and essential work still has to be done. But farmers cannot pass these rising costs on in the marketplace," the ICSA representative said.

He added: "There is a very real danger that the cost of production is becoming unsustainable for more and more farmers."

The ICSA is calling on the government "to recognise the seriousness of the situation and act".

"This is not about giving farmers a little extra help. It is about whether farmers can continue to produce food when the cost of doing the basic work of farming is becoming too high," Phelan said.

The ICSA said it has submitted a list of demands to Taoiseach Micheál Martin; Tánaiste Simon Harris; Minister for Agriculture, Food and the Marine Martin Heydon; and Minister for Public Expenditure Jack Chambers.

The farm organisation is calling for the carbon tax component of the mineral oil tax on green diesel to be abolished; or if not abolished to be reduced by 80%; or, "at an absolute minimum", not increased for green diesel any further in the current farm input cost situation.

The ICSA also wants the government to cap how much it takes on tax from fuel.

The farm organisation is also calling for the VAT on green diesel to be reduced; the introduction of a permanent tax relief on fuel used in food production; the reopening of the Fuel Income Support Scheme without a minimum fuel usage threshold; and reducing VAT on Kerosene as a heating oil.

The ICSA also wants farmers to be protected from additional costs that may come as a result of the Carbon Border Adjustment Mechanism (CBAM), and where costs cannot be avoided, for these to be fully offset.

Phelan said the ICSA is also concerned with the potential for fuel availability to become an issue.

"If supplies tighten, farmers must be treated as a priority for access to fuel. Food production cannot be allowed to grind to a halt because farmers cannot access or afford the fuel they need to keep their farmers operating," he said.