According to the Farm Contractors of Ireland (FCI) there has been a 36% increase in agricultural diesel fuel costs – to €0.75/L (including VAT) in 2018.

This increase, it says, will add more than €500 per day in fuel costs to the overall expense of running a modern (contractor’s) silage harvesting system.

The FCI is very concerned by the increases in the cost of agricultural diesel – up dramatically from €0.55/L (including VAT) this time last year.

In response, the FCI is seeking the removal of the ‘Carbon Tax’ from agricultural diesel used by contractors – to allow them to maintain silage harvesting charge-out rates at 2017 levels.

It has written to both the Minister for Finance Paschal Donohoe and the Minister for Agriculture Michael Creed – pressing for action to be taken.

Farmers worldwide are feeling the pinch as fuel costs rise to near four-year highs just as they plant and harvest their fields, eroding agricultural income already hamstrung by depressed crop prices.

The price of ultra-low sulphur diesel used for farming equipment and transporting crops has not been this high in May since 2014.

The good news is that diesel prices continue to slowly fall. They are some 3c/l to 4c/l lower than the recent peak in late May.

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However despite the fall over recent weeks, oil prices are still about 60% higher than 12 months ago.