Independent TD, Michael Healy-Rae, has declared that with “massive” increases in fertiliser costs, agricultural contractors are “facing an awful dilemma”.
During a Dáil debate on Tuesday, March 22nd, 2022, he stated that we “desperately” need the government to support the fact that agricultural diesel is “so expensive now”.
At this point, he said the only support farmers and agricultural contractors have received from government is “2c by way of the rebate scheme”.
He told the house that “any day of the week, one now has to put €650 worth of agricultural diesel into a tractor that will be mowing or going hard all day”.
“It is impossible for these contractors to say that they are going to be able to provide a service to farmers – their customers – this year.”
He believes that it is a “matter of absolute urgency” that the government reviews this.
“We need our farmers to produce. First, we need them to be able to have silage and, second, hay has to be grown and saved for us to have our food produce,” he concluded.
Ag contractors call for carbon tax removal
Meanwhile, last week, we reported that the FCI has called on the government to immediately remove carbon tax from all MGO (green diesel) contractors use for the next five years.
It has outlined that such a move would:
- Allow “adequate” time for the international machine development and supply sector to provide alternatives to Internal Combustion Engines (ICE). The body suggested these could come in the form of “market-ready” zero-carbon systems to meet the Climate Action Plan’s objectives.
- Reduce costs.
Besides, the body has also expressed over rising AdBlue prices.
It stated that the cost of AdBlue has doubled since November 2021 due to scarcity issues with the urea base product.
Furthermore, the association revealed that this has resulted in almost €5 million in fuel-related costs for Irish farm & forestry contractors in that period.