Irish accountancy and advisory firm ifac, one of Ireland's top ten accountancy practices, is advising farm business owners to take immediate steps to protect cashflow and manage rising fuel and input costs, as global oil prices surge following geopolitical disruption in the Middle East.

Donegal News reported that Brent crude has surpassed $100 per barrel following disruption to global supply routes, with sharp increases already recorded in the cost of green diesel, road diesel, and home heating oil in Ireland, alongside growing pressure on fertiliser prices.

The Irish Government has announced a €235m emergency fuel package, including temporary reductions in excise duties, but ifac has warned the measures will not offset the full extent of cost increases being experienced on the ground.

Joe Lambe, partner at ifac's Raphoe office, said: "Farmers are once again dealing with a sudden and significant cost shock, driven by factors entirely outside their control. While the Government's measures will provide some short-term relief, they will not offset the full extent of the increases we are seeing on the ground."

Lambe added: "What is critical now is that farmers take a proactive approach and understand their exposure, manage consumption where possible, and plan ahead for further volatility. We have seen before how quickly energy costs can escalate, and early action will make a real difference to cashflow over the coming months."

Ifac is advising farm businesses to review fuel usage across machinery, transport, and heating, plan ahead without panic-buying where storage capacity allows, and monitor supplier pricing closely.

Lambe said the situation also highlights the importance of longer-term planning, adding that investments in on-farm energy efficiency are becoming increasingly relevant in an environment like this.

Access the full ifac advisory on managing farm fuel costs.