Budget 2027 takes place on 6 October 2026 against a backdrop of escalating input costs, mediocre output prices and the lingering effects of drought.
It is therefore not surprising that there are mounting calls for greater support funding to alleviate pressure at farm level and help farmers keep their businesses afloat.
There are a number of critical schemes in receipt of national exchequer funding, much of which has been allocated under the Common Agricultural Policy (CAP) Strategic Plan 2023-2027 or the National Rural Development Plan. These are built into budget spending as a formality.
However, there are also a number of schemes solely funded by the national exchequer which must receive annual funding to operate, such as the Tillage Support Scheme and beef and sheep welfare schemes, and also a number of new asks for funding support in 2027.
Budget 2027 is taking place against a reported Government mandate for the Department of Agriculture to find savings of €26m for 2027 to cover overspending in other departments.
Minister Martin Heydon is on record as stating that he will be seeking to build on a 9% increase in funding achieved in Budget 2026 and farmers will be hoping this materialises.
The hot topic in the spotlight is co-funding support under the EU Fertiliser Action Plan. Ireland’s share of the €540m fund is €15.3m and the Government has the potential to implement the maximum national co-funding top-up of 200%.
Minister Heydon has stated that he is seeking support from his cabinet to make this happen and deliver a fund worth up to €45.9m. This is required to deliver any meaningful level of support with estimates for support working out at approximately €11/t for each tonne of fertiliser purchased in 2025 and up to €33/t if the maximum funding is allocated.
Speaking on the Irish Farmers Journal stand at the National Ploughing Championships Taoiseach Micheál Martin conveyed his support for farmers in combating fertiliser prices but was coy on suggestions of unspent funds from the fuel support scheme being added to this pot of funding. He said that discussions are ongoing and that no decision has been made on how such unspent fuel scheme funds may be reallocated.
The Taoiseach empathised with tillage farmers commenting that something needs to be done to support the sector but did not expand on what this could look like. The tillage and horticulture sectors received support of €32.36m in 2025 and €30m in 2026, setting a precedent for similar support in 2027. This funding was packaged into an overall sector support package of €50m to include the Protein Aid Scheme and the Straw Incorporation Measure (SIM).
Tillage editor Siobhán Walsh reported a few weeks ago that there was €34.4m spent on SIM in the first three years and potentially up to €15m required to fund the scheme in 2026. This means that additional funding will likely be required for SIM in 2027. It is hoped that at least a similar funding pot of €50m will be allocated for 2027 which should hopefully cover the final year’s spend for SIM and provide the basis for a Tillage Support Scheme to support cash-strapped growers.
The big surprise in Budget 2026 was an increase in funding of €85m for the Ireland’s bovine tuberculosis (TB) programme. This brought total funds allocated to a massive figure of €157m. TB reactor numbers for the first half of 2026 are down 20% (43,290 to 34,886) after increasing by 70% in the previous two years.
There is a quiet expectation that this performance might be carried through to the end of this year, meaning that there may be some scope to free up funding from this area. The savings will not be in line with the 20% reduction in TB reactor numbers as there are additional costs to implementing the bovine TB action plan.
The National Beef Welfare Scheme was allocated €28m in Budget 2026. This was not sufficient to cover the increase in the payment rate from €50 to €75 per calf along with an increase from 40 eligible calves to 45 eligible calves. The payment rate was subsequently cut to €67 per calf. The Department has already set out its stall when opening the scheme in 2026 stating that in the event that the scheme is oversubscribed in 2026, linear cuts will apply. As such it is expected that the funds allocated will remain at €28m in Budget 2027.
Funding allocated to the National Sheep Welfare Scheme in Budget 2026 looked to be initially reduced by €2m but was quickly revised to the previous year’s figure of €22m. The €13 per ewe payment figure was cut to €11.50 per ewe as the scheme was oversubscribed for the funding allocated.
The scheme is critical given the trend of reducing output in the sheep sector. Similar to the Beef Welfare Scheme, the Department has stated that linear cuts will be implemented in the case of the scheme being oversubscribed so it is fair to expect a similar budget for 2027. Farm organisations have stated that linear cuts are a red line flag for them so it will be interesting to see how this develops.
The level of funding allocated to the Organic Farming Scheme has steadily grown in recent years in line with growing participation. The number of new applicants accepted into the scheme has slowed considerably but there is still an appetite to get more tillage and dairy farmers converted to organic production.
There will be a limited budget increase allocated for this aim but it is highly likely that there won’t be a big jump from last year’s figure capable of supporting a significant intake of new livestock farmer participants.
It is likely there will be higher funding allocated to the Agri-Climate Rural Environment Scheme again in 2027 to meet existing commitments. Funding for ACRES has been allocated under the programme for Government but there has still been some pressure on budget allocations for particular years and this is likely to remain unchanged. There was a significant number of farmers paid in January 2026 suggesting that the scheme is dipping in to the next years budget to cover payments.
The National Dairy Beef Weighing Scheme returned in 2025 following strong calls for its reintroduction. The €4m budget was heavily oversubscribed with the number of calves eligible for the €20/head payment, reducing from 50 calves to 31 calves. Despite calls for more funding, reports suggest it could remain unchanged in the region of €4m.
Some €10m has been delivered in recent years under the umbrella of animal health. Much of this funding has been utilised by the Targeted Advisory Service for Animal Health (TASAH) and a bovine viral diarrhoea tissue-tag support payment.
The wait goes on for an infectious bovine rhinotracheitis pilot control programme but this has rolled over in recent budgets. There are no real changes expected on the overall budget in the upcoming budget.
Taoiseach Micheál Martin, Tánaiste Simon Harris and Minister for Agriculture Martin Heydon honed in on the importance of generational renewal when speaking at the Irish Farmers Journal stand at the Ploughing.
Harris floated the prospect of tax incentives while Martin confirmed that the Government had no intention of altering current inheritance policies.
It is probable that there may be some incentives to encourage succession or farm partnerships.
Funding of €2.5m was allocated in recent years for farm safety. The popular red clover silage and multispecies swards measures is likely to remain absent. Spending on forestry has been well below target in recent years so budgetary constraints are not likely to be an issue. Spending on the TAMS will remain as per budget, with capital allowances remaining
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