Budget 2027 delivers €2.344 billion boost for rural Ireland
A landmark Budget 2027 package worth €2.344 billion will underpin support for farmers, fishers and rural communities. The allocation targets water quality, animal welfare and generational renewal across Ireland’s agri-food sector.
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Gov.ie / MerrionStreet
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⏱️ 2 min read
A historic funding package of €2.344 billion has been secured for 2027 to bolster supports for farmers, fishers, foresters and rural communities nationwide. The allocation, announced today by Minister for Agriculture, Food and the Marine Martin Heydon TD, builds on existing progress while addressing rising input costs and environmental challenges facing the sector.
The budget includes €2.019 billion for current expenditure and €325 million for capital programmes, with targeted measures to enhance water quality, animal health and farm safety. An additional €31.2 million will extend fuel supports for farmers and agricultural contractors through December 2026, while €46.1 million in new funding will assist those affected by fertiliser and energy cost increases linked to the Middle East crisis.
Minister Heydon emphasised the package’s focus on long-term resilience, stating, “This budget will strengthen the economic and environmental sustainability of our agri-food sector while protecting rural livelihoods.” Key initiatives include a €93.35 million allocation for the TAMS on-farm investment scheme—the largest annual budget in its history—to support slurry storage, modernisation and generational renewal. The extension of the nitrates derogation remains a priority, with over €21 million earmarked to improve water quality through European Innovation Partnerships.
Animal health measures receive an €8.4 million uplift, alongside a reduction in VAT on non-oral respiratory vaccines from 23% to 9% to encourage uptake. The TB Action Plan continues to yield results, with herd incidence down 10.9% in 2026 compared to the previous year. A further €142.4 million will fund bTB measures in 2027, while the On Farm Market Valuation ceilings will rise by €500 for all reactor categories from Budget Day.
Generational renewal remains central, with the Succession Farm Partnership Tax Credit renewed and the Growth and Sustainability Loan Scheme expanded. The tillage sector benefits from €54 million in targeted supports, including €30 million for the Tillage Sustainability Support Scheme and €14 million for the Straw Incorporation Measure. Meanwhile, the fishing and seafood sector receives €174.8 million, including €20 million to address quota cuts and support sustainability measures.
Forestry and research also see significant investment, with €93 million allocated for forestry programmes and €20 million for agri-food research and development. Minister Heydon concluded, “This budget recognises the vital role of our agri-food sector in sustaining rural economies and communities, while ensuring long-term viability for farmers and fishers.”
The budget includes €2.019 billion for current expenditure and €325 million for capital programmes, with targeted measures to enhance water quality, animal health and farm safety. An additional €31.2 million will extend fuel supports for farmers and agricultural contractors through December 2026, while €46.1 million in new funding will assist those affected by fertiliser and energy cost increases linked to the Middle East crisis.
Minister Heydon emphasised the package’s focus on long-term resilience, stating, “This budget will strengthen the economic and environmental sustainability of our agri-food sector while protecting rural livelihoods.” Key initiatives include a €93.35 million allocation for the TAMS on-farm investment scheme—the largest annual budget in its history—to support slurry storage, modernisation and generational renewal. The extension of the nitrates derogation remains a priority, with over €21 million earmarked to improve water quality through European Innovation Partnerships.
Animal health measures receive an €8.4 million uplift, alongside a reduction in VAT on non-oral respiratory vaccines from 23% to 9% to encourage uptake. The TB Action Plan continues to yield results, with herd incidence down 10.9% in 2026 compared to the previous year. A further €142.4 million will fund bTB measures in 2027, while the On Farm Market Valuation ceilings will rise by €500 for all reactor categories from Budget Day.
Generational renewal remains central, with the Succession Farm Partnership Tax Credit renewed and the Growth and Sustainability Loan Scheme expanded. The tillage sector benefits from €54 million in targeted supports, including €30 million for the Tillage Sustainability Support Scheme and €14 million for the Straw Incorporation Measure. Meanwhile, the fishing and seafood sector receives €174.8 million, including €20 million to address quota cuts and support sustainability measures.
Forestry and research also see significant investment, with €93 million allocated for forestry programmes and €20 million for agri-food research and development. Minister Heydon concluded, “This budget recognises the vital role of our agri-food sector in sustaining rural economies and communities, while ensuring long-term viability for farmers and fishers.”
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