Budget 2027 includes new fertiliser support, an extension to fuel support, increased funding for farm investment and changes to farm succession tax relief. Here are the main announcements and what they could mean for your farm.
Fertiliser and Fuel Support
Approximately €46 million in combined EU and national funding has been announced for a new fertiliser support scheme. DAFM is expected to confirm eligibility, application arrangements and payment rates shortly.
The Fuel Income Support Scheme is being extended to cover August to December 2026, following the original March-to-July period.
Although announced as part of Budget 2027, these measures relate to costs incurred during 2026. Farmers should retain relevant purchase records and watch for further application instructions.
Increased TAMS Funding
Approximately €93 million has been allocated to TAMS for 2027, supporting investment in eligible farm buildings, facilities and equipment.
TAMS remains particularly relevant for farmers considering slurry storage, safety improvements or other qualifying investments. The increased allocation is the overall scheme budget; it does not automatically increase individual grant percentages or guarantee approval.
Farmers planning an investment should check the relevant scheme conditions and approval requirements before starting work.
National Sheep Welfare Scheme
An allocation of €22 million has been announced for the National Sheep Welfare Scheme.
This provides funding for the scheme, but the Budget announcement alone does not confirm the 2027 payment per ewe, required actions or application dates. These details should be checked when DAFM publishes the scheme conditions.
Higher TB Compensation Ceilings
Compensation ceilings under the TB On-Farm Valuation Scheme are to increase by €500.
This raises the maximum compensation available within the relevant categories. It does not mean that every farmer will receive an additional €500 for each reactor: the actual payment depends on the animal’s valuation and the applicable ceiling.
Changes to Farm Succession Tax Relief
The Succession Farm Partnership tax credit will increase from €5,000 to €10,000 for qualifying partnerships registered from 1 January 2027.
The three-year waiting period before succession is also being removed for new applications from that date.
These changes may be relevant to families planning to bring a successor into the farm business. The credit applies to qualifying succession partnerships and is not an automatic payment for transferring a farm. Advice should be sought on the partnership, transfer and tax conditions before proceeding.
VAT and Farm Safety Measures
The farmers’ flat-rate VAT addition will increase from 4.5% to 4.8%. For a qualifying sale worth €10,000 before the addition, this would increase the addition from €450 to €480.
VAT on livestock respiratory vaccines will reduce from 23% to 9%.
Accelerated capital allowances for qualifying farm safety equipment are being extended for three years, with 12 additional items being added. This relief allows eligible expenditure to be deducted more quickly for tax purposes; it is separate from a cash grant.
Farmers should check the commencement dates and final eligibility rules for these changes.
Water Quality, Biodiversity and Tillage
An additional €21.6 million has been announced for water quality and biodiversity European Innovation Partnerships. Opportunities for farmers will depend on the individual projects, their locations and eligibility requirements.
The Straw Incorporation Measure will receive an additional €4 million. This increases overall funding but does not, by itself, confirm a higher payment per hectare.
What Should Farmers Do Next?
The immediate priority is to watch for the detailed rules for fertiliser support and the extended fuel scheme. Farmers considering TAMS investments or succession arrangements should also review how the announcements may affect their plans.
Budget allocations are not the same as confirmed individual payment entitlements. Application dates, qualifying conditions and payment rates must be checked against the final DAFM scheme documentation.
For assistance with farm scheme applications, TAMS, slurry storage planning, soil sampling or nutrient management plans, contact Alicia Temple at Temple Agricultural Consultancy.
This article reflects Budget announcements available on 7 October 2026. Further scheme details and legislative provisions may follow.
