Ifac, one of Ireland’s top ten accountancy and advisory firms, is advising Waterford farmers across Ireland to take immediate steps to manage rising fuel and input costs, as global oil prices surge following recent geopolitical developments in the Middle East.
Oil prices have risen sharply in recent weeks, with Brendt crude surpassing $100 per barrel after disruption to global supply routes. This has already had a significant impact in Ireland, with sharp increases in the cost of green diesel, road diesel and home heating oil, alongside growing pressure on fertiliser prices.
The Government has announced a €235m emergency fuel package, including temporary reductions in excise, but ifac is warning that farmers should act now to protect cashflow and manage costs in the months ahead.
Eoghan Drea, Partner at ifac’s Dungarvan office, said: “Farmers are once again dealing with a sudden and significant cost shock, driven by factors entirely outside their control. While the Government’s measures will provide some short-term relief, they will not offset the full extent of the increases we are seeing on the ground”.
“What is critical now is that farmers take a proactive approach and understand their exposure, manage consumption where possible, and plan ahead for further volatility. We have seen before how quickly energy costs can escalate, and early action will make a real difference to cashflow over the coming months.”
Ifac is advising farmers to focus on a number of practical steps to reduce the impact of rising costs:
- Review fuel usage and reduce consumption across machinery, transport and heating.
- Plan ahead without panic-buying, particularly where storage capacity allows.
- Monitor supplier pricing closely and challenge any disproportionate increases.
- Review wider input costs, particularly fertiliser, which is closely linked to energy prices.
- Ensure machinery is operating efficiently, as poor maintenance can significantly increase fuel consumption.
The Government’s package includes temporary reductions in fuel excise and adjustments to the NORA levy, alongside changes to the diesel rebate scheme. These measures are due to run until the end of May, with a review expected depending on market conditions.
Eoghan Drea added: “The key message for farmers is to stay calm and act early. Irish farmers have managed through energy shocks before, and the same practical, measured approach will be needed again”.
“At the same time, this situation highlights the importance of longer-term planning. Investments in efficiency and on-farm energy options are becoming increasingly relevant in an environment like this. Ifac is encouraging farmers to engage with their advisor to assess the specific impact on their business and identify the most appropriate response.”
With over 50 years in business, over 30 locations nationwide and 600 professionals, ifac continues to execute its ambitious national growth strategy, combining strong regional practices with the scale and technical depth of a leading firm.
