Farm and forestry contractors in Ireland have been hit with the perfect storm of cost increases over the past year.
The recent increases in diesel prices have been the straw that broke the camel’s back; but even before the war in Iran, farm contractors were going to have to raise their prices for the 2026 season.
The auto-enrolment pension scheme and an increase on minimum wage have seen contracting business owners face significant increases in their wage bill. Furthermore, lubricating oil have gone up 20%, whilst AdBlue and servicing parts such as filters have increased by 25%. Insurance and electricity cost increases of almost 10% have come at a time when new machinery costs are soaring.
Solidarity
This is a temporary crisis and FCI are stressing that solidarity between farmers and contractors is key to both groups surviving these turbulent times. Calls for contractors to “pass on” the government’s income support scheme are unhelpful and incendiary during this time of crisis.
FCI Managing Director Ann Gleeson Hanrahan said: “Agriculture/Forestry contractors and farmers have a symbiotic relationship in rural Ireland. For both groups to survive it is important that farmers understand the uncertain nature of the Income Support Scheme. The scheme is offering payments of up to 20 cent per litre, however, if the scheme is oversubscribed, the actual payment to contractors will be significantly less than 20 cent per litre. Contractors will not know the amount they will receive until the scheme is closed and the calculations are made by the department.”
“FCI are recommending that, in order to survive the crisis and have a sustainable future for their business, their members should increase their 2025 prices by 20%” she concluded.
