Although no increase in the carbon tax on fossil fuels was announced in the recent Budget, agricultural diesel prices have risen substantially over the past 12 month period.

Last week, farmers around the country were quoted prices for agricultural diesel in the region of 85c/l, in comparison to 69c/l for the same period last year.

We compiled a graph demonstrating diesel prices throughout the 2017 and 2018 calendar year to date. This graph has indicated agricultural diesel is trading on average of 11c/l more expensive this year in comparison to 2017 prices.

So what does this 11c/l increase mean for the farmer?

The increase in price will affect every farmer differently, depending on tractor size and usage etc. The most popular tractor sold in the Irish market nowadays is in the 120hp bracket.

Irish farmers out there are clocking up anywhere from 500 to 1,000 hours per year.

The graph illustrates the significant variations of agricultural diesel prices throughout the 2017 and 2018 calendar years. Diesel usage is traditionally higher in the summer months due to the obvious activities such as silage cutting.

In May this year, we saw agricultural diesel prices jump by 21c/l compared to 2017 prices. This significant price jump had a huge effect on both farmers and contractors. At the time, this price hike was estimated to be costing high output efficient silage harvesting outfits in excess of €500 per day in comparison to 2017 figures.

Estimates from the CSO and SEAI show that the 69,852 tractors in Ireland in 2012 consumed 288m litres of diesel.

This means that the 11c/l increase in agricultural diesel prices to date this year could potentially set the industry back by over €31.6 million.

However, depending on how the diesel prices go for November and December could change this figure. The price volatility of the fuel market demonstrates how vulnerable the Irish agricultural sector is to fluctuations.