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The subsidy works out at €12 per bale of silage or haylage and €8 per bale of hay or straw – understood to be standard-sized bales.
The transport subsidy only applies if a farmer is hauling the bales over 100km. To get the payment, the farmer must produce a receipt from the haulage company for the transport cost.
Farmers, who have an identified fodder shortage, having completed a fodder budgeting exercise with their agricultural advisor, will be eligible to receive a financial contribution towards offsetting the costs of transport of fodder.
Financial assistance under the Fodder Transport Support Measure is payable in accordance with Commission Regulation (EU) No 1408/2013 on de minimis aid in the agricultural production sector.
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The much-anticipated fodder transport subsidy will be paid to the farmer buying the fodder, not the seller, the Irish Farmers Journal understands.
Minister Creed said that application forms for the scheme will be available later this week.
Speaking at the launch of the measure, Minister Creed said: "Fodder remains available across the country but I am conscious of the significant additional cost to farmers where fodder has to be transported over significant distance to areas where it is most needed.
"This measure builds on my early supports to farmers through prioritisation of farm payments last autumn and the additional availability of advisory support to farmers in these areas by Teagasc to facilitate fodder budgeting over the recent period."
The minister also acknowledged the effective contribution of the fodder task-force he convened last December in ensuring a co-ordinated response to the fodder problem across all the main stakeholders including Teagasc, feed merchants, co-ops, banking and the farming bodies.
Minister Creed said: "As fodder is traded between farms on a regular basis, it is essential that the support measure being announced today is targeted at those who most need it and does not impact on the normal functioning of the market for fodder.
"This is now the case and I am grateful that the co-op structure is supporting the practical implementation of this measure."
Reactions
Farming organisations gave the measure a cautious welcome. IFA President Joe Healy said it would help to alleviate fodder problems, but more is needed. He added that the 100km rule was too inflexible and among several impractical aspects.
Both the IFA and the ICSA said a meal voucher system would have been better. The ICSA also called for flexibility on the 100km rule.
"The priority must be for money to flow in to the scheme as soon as possible. Red tape must be minimised,” said ICSA president Patrick Kent.
Fianna Fáil agriculture spokesperson Charlie McConalogue said the decision to offer fodder transport only was "flawed" and the solution should include meal vouchers. "The Minister’s short-sighted scheme completely ignores this option, focusing solely on fodder transportation, therefore driving up the demand, and most likely the price."
Trading suspended
On Wednesday morning, fodder dealers and hauliers said that sales of hay, straw and silage were effectively suspended as buyers and sellers awaited details of the scheme.
Farm organisations had called for a transport subsidy and meal voucher system. While the minister said a transport subsidy would be given the green light, he ruled out any prospect of a meal voucher system.
Reporting by Hannah Quinn Mulligan, Paul Mooney and Amy Forde.
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