Budget 2020 was dominated by prudence with no big winners or losers.

While the carbon tax brings a marginal change in price of fuel for cars and home heating, what impact will this have? A marginal increase in price, for a good which is not highly sensitive to change, due to a lack of alternatives, will not likely result in major change in current consumption for many rural dwellers.

The Government’s approach enables us to be more strategic in our decision-making, allowing us to consider our options for greener alternatives now and in future years.

The bottom line is that once CO2 is emitted into the atmosphere it contributes to increasing temperatures

What is unclear is how the Government will support a just transition.

The bottom line is that once CO2 is emitted into the atmosphere it contributes to increasing temperatures.

Options include heavy taxation or to cease activity, such as recent closure of our power stations in the midlands.

The reality is, we need our Government to support us in making these transitions

The reality is that the effect of burning fossil fuels today remains in the atmosphere for thousands of years, well beyond the burden of taxation.

The message here is that mitigation is not enough. We need to stop and make the transition to a carbon-neutral economy, sector by sector.

The reality is, we need our Government to support us in making these transitions.

An overnight change is not likely or possible in some instances, but we must start somewhere and change what we can immediately.

Transition

The big challenge for agriculture is the transition to a carbon-neutral economy and the digital transition.

Budget 2020 provides for a new Just Transition Fund worth €6m and the appointment of a commissioner.

Farmers and rural dwellers will welcome that fund priorities will be locally driven but will also be anxious to know how soon this fund will be available and how it will be allocated.

The UK market is valued at €5.6bn

Brexit is another unprecedented and immediate challenge for Irish agriculture.

The UK market is valued at €5.6bn. The economic contribution of Irish agriculture is still strong with exports valued at €13.7bn.

It also accounts for approximately 12% of industry turnover. These are important in terms of national ownership and retention of profits in Ireland.

The agri-food sector represents 8% of national employment, with over 80% based outside of Dublin.

As a result, Brexit will have a disproportionately larger effect on rural Ireland. The conditional allocation of €650m in no-deal Brexit funding in Budget 2020 is positive.

On a per-farm basis, this may amount to very little depending on the terms and conditions of such schemes

Of this, €110m is allocated to the Department of Agriculture, with clear expenditure distributions: €85m for beef, €14m for fisheries, €6m for livestock and mushrooms and €5m for food and drinks. On a per-farm basis, this may amount to very little depending on the terms and conditions of such schemes.

Looking beyond this, will farmers be eligible for the €110m allocated for investment in vulnerable but viable firms? Also, through the €45m Transition Fund and €42m Rescue and Restructuring Fund, farmers are transitioning and potentially restructuring.

The remaining €390m of unknown contingency expenditure will also raise some questions, with eyes firmly on the pot in the event of a no-deal.