IFA President John Bryan said: “While acknowledging that the introduction of a Carbon Tax is a key principle of Government, and particularly the Green party, it is unacceptable that its introduction will result in an 8.7% increase in the price of Farm Diesel, as opposed to a 4.4% price increase for road diesel. The Carbon Tax must be applied more equitably by reducing the rate of the tax on Farm Diesel.”

He added: “the imposition of the tax at this rate will have a severe impact on all farmers and especially the grain industry, which is on its knees after two loss-making harvests. The viability of the grain industry and the 10,000 jobs it supports are in real doubt. The Government must show its commitment to the industry at this difficult time by reducing the proposed rate.”

“The Carbon Tax will be an additional cost on production for farmers as (i) no alternative fuels are available, (ii) farmers cannot pass on the extra cost to the market, and (iii) it comes on top of a 30% decline in farm incomes in 2009. Furthermore, it will make Irish agriculture less competitive within the EU, as many countries have not introduced such a tax,” said the IFA leader.

The current percentage rate being charged on road diesel is 4.4 per cent. The IFA has requested the Government to apply this percentage rate to on farm diesel.

The IFA president concluded saying: “This would have the effect of reducing the anti-competitive costs of the Carbon Tax on farm production and removing the discrimination between the increased pricing of Farm Diesel and road diesel under the tax.”

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