The Department of Agriculture, Food and the Marine (DAFM) has been allocated over €2 billion as part of Budget 2025, which amounts to a total of €10.5 billion, as announced by the government in the Dáil today (Tuesday, October 1). This allocation marks an increase from last year’s budget for DAFM, which stood at €1.9 billion. However, it is worth noting that this year’s allocation is still lower by 17% compared to the budget in 2023, which was €2.141 billion.
Over €716 million has been earmarked for agri-environmental schemes in 2025, including initiatives such as the Agri-Climate Rural Environment Scheme (ACRES), the Areas of Natural Constraint (ANC) scheme, forestry, and organic farming. Budget 2025, signed off by the Cabinet this morning, was presented to the Dáil by Minister for Finance, Jack Chambers, and Minister for Public Expenditure, NDP Delivery, and Reform, Paschal Donohoe.
The funding allocated to the agriculture sector in Budget 2025 includes various provisions such as €30 million for a new tillage scheme to support farmers in planting field crops, €10 million for animal health measures to enhance biosecurity, €22 million for the continuation of the National Sheep Welfare Scheme, and €8 million to increase payment rates on the National Beef Welfare Scheme. Additionally, €143 million from Carbon Tax funding will be directed to DAFM in 2025 to aid farmers in improving biodiversity, climate, air, and water quality outcomes.
Minister Donohoe emphasized that the funding allocated will continue to support farmers in their efforts to enhance various environmental aspects. Furthermore, the DAFM is set to administer over €1.2 billion of EU funding in direct payments to farmers, as announced by the minister in the Dáil. Minister Donohoe highlighted the broad support across sectors, ensuring assistance to farmers, fishers, and foresters. He emphasized the significance of the agri-food sector in rural communities, describing it as a vital part of the economy that contributes to biodiversity preservation and landscape protection.
In the previous year, a substantial portion of DAFM’s budget, amounting to €968.1 million, was allocated to the farm sector supports and controls programme. This program mainly focused on schemes related to the Common Agricultural Policy (CAP), with over €700 million designated for farmers participating in environmental schemes like ACRES, ANC, forestry, and organic farming.
As part of Budget 2025, the Carbon Tax will see an increase of €7.50 per tonne, bringing the total revenue available for investment to €951 million. The government announced that half of this amount will be utilized to enhance the energy efficiency of homes, with an additional €89 million allocated compared to the previous year. The increase in the carbon tax rate per tonne of CO2 emitted for petrol and diesel will come into effect from October 9, rising from €56.00 to €63.50. For other fuels, the rate adjustment will occur in May 2025, post the winter home-heating season.
Minister Chambers highlighted that the revenue generated from the carbon tax increase will be utilized to safeguard vulnerable individuals from unintended impacts, contribute to a socially progressive national retrofitting and energy efficiency program, and support farmers in transitioning towards greener practices.
