Opinion: Budget 2026 must deliver for Irish tillage

There is a growing expectation in the tillage sector that Budget 2026 will recognise the support that is so badly required by Irish grain growers at the present time.

Tillage is the only sector within agriculture that is under severe economic pressure, a scenario that has been a reality for cereal producers stretching back over the past three years.

Assuming government does commit to a support package for crop production, two fundamental principles must be addressed: are we talking about a one-off payment or will Budget 2026 commit to longer-term and more strategic investment in Irish crop production?

Farmers will point to the fact that it may well take a number of years before international grain markets strengthen to a level that will sustain their businesses.

Tillage production costs

In the meantime, all their production costs look set to increase at an exponential rate during the period ahead.

Future fertiliser prices represent a case in point in this regard.

Significantly, tillage production has been officially recognised as being of fundamental importance in respect of Ireland’s response to climate change.

Ireland’s Climate Action Plan targets an increase in the area of tillage crops grown in Ireland by 2030. The target has been set at some 400,000ha, some 70,000ha above the footprint of the industry at the present time.

It is universally accepted that tillage will not meet this objective if it is not returned to some form of sustainability in the very near future.

Adding to the challenges faced by tillage farmers is their reliance on rented ground, a reality driven by the crop rotations they must follow, and the fact that they cannot compete with the conacre and longer-term leasing prices that the likes of dairy and beef producers can pay at the present time.

Meanwhile, growers are being bombarded with requests to purchase winter cereal seed - at a time when they have yet to be paid for the crops they harvested weeks ago.

Fundamentally, businesses survive on the back of a healthy cash flow. The polar opposite is the scenario that continues to unfold within Irish tillage at the present time.  

So we really have arrived at a pivotal point for Irish tillage. And all the main decisions rest with government.

There is considerable scope for Budget 2026 to deliver for the tillage sector. The Irish government can take real decisions to support the industry without having to get clearance from Brussels.

And let’s not forget that both Fine Gael and Fianna Fáil committed to supporting Irish tillage in the current programme for government.  So, let’s see what tomorrow (October 7) brings.

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