The Association of Farm and Forestry Contractors in Ireland (FCI) has called for the Minister for Finance Paschal Donohoe to postpone the €6/t carbon tax increase due to come into effect on 1 May 2020.

It has also asked that the farm and forestry contractors have equal access to the double deduction for carbon tax already offered to all farmers in Ireland.

This is now being converted into increasing debt to the many farm and forestry contracting businesses

It has called for Irish farmers to be provided with financial support mechanisms that are ring-fenced to fund the payment of their contractor services during 2020.

The consequences of the coronavirus outbreak are already having disastrous impacts on cashflow on many Irish farms, the FCI has said.

“This is now being converted into increasing debt to the many farm and forestry contracting businesses that we at FCI represent and who provide essential farm machinery services to more than 80% of Irish farmers.

Payment resistance

“Our concern now is for the future impacts of many farm and forestry contracting businesses, as there is huge uncertainty around farm product prices,” the FCI said in a letter to Minister Donohoe.

“This has significant consequences for payments for contracting services during 2020,” it said.

The letter also said that many farm and forestry contractors are now experiencing new levels of payment resistance from their farming client customers.

“Against this ever-changing financial background, we are requesting that you now postpone the planned introduction of the proposed carbon tax increase of €6/tonne on all green diesel used for agriculture.”