Diesel, electricity, heating & transport costs — your second-largest farm expense after feed, and how to manage it.
Energy represents 15-25% of total farm production costs. With volatile global markets, managing these expenses is critical for farm resilience.
Typical range for Irish farms depending on size and enterprise
Dairy farms at higher end, tillage at lower end of range
Energy costs have risen dramatically, outpacing farm gate prices
Market prices for major energy inputs in Irish agriculture.
Green diesel
Primary Use: Tractors, machinery, heating
Avg Farm Use: 8,000-15,000 litres/year
Day/Night rates
Primary Use: Milking, cooling, lighting, ventilation
Avg Farm Use: 25,000-50,000 kWh/year
Kerosene
Primary Use: Farmhouse, calf housing, water heating
Avg Farm Use: 3,000-6,000 litres/year
Petrol & white diesel
Primary Use: Farm vehicles, pickup trucks, transport
Avg Farm Use: 2,000-4,000 litres/year
Farm energy costs are directly linked to global oil prices, geopolitical events, and currency exchange rates. While some price stabilization occurred in early 2026, the long-term trend remains upward due to production constraints and climate policies. Irish farmers face additional challenges with limited energy storage options and seasonal demand peaks.
Practical advice: Consider bulk fuel purchases during price dips, explore energy efficiency upgrades, investigate solar/wind options, and diversify farm income with low-energy crops like hemp to offset energy expenses.
Monthly average prices for agricultural (green) diesel in Ireland.
Install solar panels, wind turbines, or biomass systems. TAMS grants available for up to 60% of costs.
Upgrade to LED lighting, variable speed drives, efficient boilers, and proper insulation.
Shift some acreage to crops requiring less fuel-intensive operations like hemp, which needs minimal machinery passes.
Use hemp as cash crop to generate income specifically allocated to cover energy costs, creating a "fuel fund" for your farm.
How hemp's low fuel requirements compare to conventional crop production.
Hemp requires only 2-3 machinery passes (planting and harvesting) compared to 6-8 passes for conventional cereals. For a 100-acre farm switching 20 acres from winter wheat to hemp, annual diesel savings could reach €1,700 at current prices, plus the income from hemp sales. This dual benefit addresses both cost reduction and revenue generation simultaneously.
Challenge: Annual energy costs exceeding €18,000 (€12,000 diesel + €6,000 electricity) with limited control over price volatility.
Solution: Allocated 15 acres to hemp cultivation while maintaining core dairy and tillage enterprises.
"The hemp income now covers our annual electricity bill completely. We're using the fuel savings to invest in solar panels. Hemp gave us control over a cost we previously had no control over." — Michael O'Brien
You can't control global oil prices, but you can control how you respond to them.
Know exactly what you're spending on diesel, electricity, and heating. Review invoices from the past 12 months.
Look for efficiency improvements, bulk purchasing options, and renewable energy potential on your farm.
Consider allocating marginal land to hemp to create a dedicated "energy fund" for your farm operations.
