Market Report
Growing-wise it was a favourable season for most sub-sectors of horticulture. In the vegetable sector, growers experienced a favourable planting season overall, with many crops going into the ground in good time. Planting windows were utilised effectively and the warmer, more settled spell during the spring allowed many crops to establish strongly. However, although the planting phase was positive, some lines faced a dip in consumption during the hotter summer months, which slightly dampened overall market performance for those crops most sensitive to heat and reduced moisture. For protected crops, the growing season was favourable. Consistent light levels enabled timely harvesting and good-quality produce. The warm weather experienced contributed to strong consumer and retail demand throughout the summer months. Similarly, it has been a positive year for amenity growers, with favourable growing conditions and weather conditions driving consumer demand. It has been an extremely challenging period for the mushroom sector. Sustained periods of warmer weather and poor economic confidence/household budgets, stretched in the UK and at home, led to approximately 6% decline in consumption during the summer months. This, coupled with labour challenges and input cost increases has caused a very difficult season for the sector. While many crops achieved good yields and quality, the economic backdrop is difficult. Average input costs in the horticulture sector have risen markedly over recent years. Markedly, the increase in the minimum wage announced in Budget 2026 will have a huge impact on all sub-sectors.
Staffing
The cost and availability of staff is a major concern for growers. The sector has been hit hard by acute staff shortages, driven by Ireland’s low unemployment rate and a lack of a structured and permanent work permit scheme. This reliance on non-European labour is further strained by rising wage demands, including the sharp 2024 increase in the Minimum Annual Remuneration (MAR) for General Employment Permits. A pilot of the seasonal work permit scheme took place over the summer months. Several growers originally volunteered for the scheme; however, many had to withdraw because of timing, issues with visa applications and the impracticality of operating a two-tiered wage structure. A report will now be prepared on the findings from the pilot scheme. IFA continues to engage with the Department of Enterprise to make this scheme fit for purpose for industry. A committee was established for the duration of the Seasonal Employment Permit pilot. IFA continues to engage with this grouping and provide written feedback on the current challenges which the pilot scheme poses.
Food Regulator
IFA continues to engage with the office of the Food Regulator and further meetings with the CEO are arranged. The office will play a very important role in bringing fairness back into our food supply chain and level the playing pitch in negotiations between farmers, processors and retailers. IFA continues to lobby for a Statutory Instrument to give the office additional powers to compel actors in the food chain to provide information to the office of the regulator upon request.
Horticulture Grant Aid Scheme
The 2026 Scheme of Investment Aid for the Development of the Commercial Horticulture Sector is now officially open for applications. The scheme is part of an increased budget of €8.8 million secured for horticulture in 2026. Further details here.
Residential Zoned Land Tax (RZLT)
Budget 2026 gives another opportunity for landowners subject to RZLT in 2026 to request a change from their Local Authority in the zoning of their land and avail of an exemption from RZLT liability.
“There will be an exemption from the 2026 RZLT liability if a landowner applies for a rezoning to reflect the “genuine economic activity currently being carried out on the land”
This remains a temporary solution from a tax that is unfair to genuine farmers of land that fall within the scope of RZLT. Responsibility to gain the exemption, and the cost associated with gaining the exemption falls back on the landowner. IFA has campaigned to have a permanent solution that will remove actively farmed land from the scope of residential zoned land tax. This remains the policy of IFA. IFA position remains that landowners with declared agricultural activity must be removed from the scope of residential zoned land tax.
