Farming is being caught in a 'green squeeze' between the imposition of environmental taxes and the non-delivery of incentive schemes for the fledgling biofuels sector.
Figures released by Teagasc this week show that the carbon tax is harvesting €23.7 million per annum. This is more than twice the figure projected by the IFA when the tax was introduced in May.
The tax is costing the average farm €225 annually. For tillage farmers, the carbon tax is costing €476, which equates to 3% of their 2009 income.
At the same time, it emerged that the REFIT tariff proposal - in the pipeline for two years now and announced by Energy Minister Eamon Ryan in May as the carbon tax was being levied - has still not been sent to Brussels for approval. This is despite assurances given three weeks ago that the proposal was ready for delivery.
With another willow and miscanthus harvest about to begin, both stores and cash reserves of bioenergy companies are stretched to breaking point. Without the REFIT, they will incur heavy losses.
© 2010 Argentine Beef Packers
