Irish Farmers Association (IFA) president Francie Gorman has called on Government to put its carbon tax on ice to alleviate escalating energy costs for farmers, contractors and the wider economy.

This follows an IFA call to the European Commission earlier this week seeking a suspension of the EU carbon border adjustment mechanism (CBAM) levied on fertilisers imported into the EU as the farm sector grapples with another spike in input costs.

The IFA has told Minister for Finance Simon Harris that farmers and agri contractors are “particularly vulnerable” to increases in diesel price, with there being no viable alternative to diesel to power farm machinery.

The price of green diesel surged 21c/l between Friday last and this Wednesday, an Irish Farmers Journal survey found.

Stabilise

“While the Government cannot stop rising international oil and gas prices due to this conflict, they can significantly help stabilise energy prices here by removing the additional cost of carbon tax,” Gorman said.

“Energy costs have an impact on every facet of the economy from transport to home heating costs.

"Irish electricity costs are already the highest in Europe - that is why it is even more critical that the Government acts rapidly to try to minimise any further price increases.”

The IFA said that farming is heavily reliant on the use of green diesel that is currently subject to a carbon tax of 17c/l.

Natural gas and liquefied petroleum gas (LPG) on which the poultry sector relies is also subject to significant carbon tax charges, the association added.

IFA farm business chair Bill O’Keeffe said the Commission should also move to suspend CBAM temporarily, as it has said it could if evidence emerged of market disruption.

“It is clear that the EU fertiliser market will be disrupted as a sizeable amount of global fertiliser travels through the Strait of Hormuz. It is now imperative that our Minister for Agriculture pushes the Commission for the immediate suspension of CBAM tariffs on fertiliser,” O’Keeffe said.