Farmers and other primary producers are set to be excluded from a new €200m energy support scheme.

The proposed Ireland-Ukraine Enterprise Crisis Scheme will provide funds ranging from €20,000 to €2m to enterprises which are facing additional costs or liquidity challenges due to severe increases in natural gas and electricity prices.

While farmers are not eligible, companies involved in the processing and marketing of agricultural products can avail of funding under the condition that it is not passed on to farmers or other primary producers.

According to the Central Statistics Office (CSO), farmers’ electricity bills have increased by 40%, while their fertiliser costs are up 133% as a consequence of an extremely bullish energy market.

The Government estimates that up to 700 companies will be eligible for the fund, although this number may fluctuate. The aid will be available in the form of direct grants, repayable advances, equity and/or loans.

Unacceptable

Speaking on the development, Irish Farmers' Association (IFA) president Tim Cullinan said: “It is completely unacceptable and a further blow to a farming sector greatly exposed by the cost of living crisis.

“There’s huge fear and uncertainty among farmers. Rising input prices are eroding on-farm margins and output prices across many sectors are under increased pressure.

"It’s relentless and the upcoming additional hikes in electricity prices, which are not yet factored in, will only make matters worse. The Government must reconsider any decision to exclude farming from the direct energy support scheme,” he said.

Solar and AD

The IFA recently called for new measures including a new roof-top solar scheme and anaerobic digestion support scheme, financed by the Department of Environment, Climate and Communications, independent of TAMS, to help boost increased investment in renewable energy sources.