Farmers face soaring fuel and fertiliser costs

Summarised from 2 outlets · Updated 19 Oct, 06:01 · Archive

Red diesel now costs an average of £1.18 a litre, 40 per cent more than a year ago.

Red diesel prices have become increasingly volatile, creating difficulties for farming businesses. The latest bulk delivery cost farmers 20p a litre more than in July, with further increases since. Red diesel now costs an average of £1.18 a litre, representing a 40 per cent increase compared to the same time last year. The Treasury provided some relief by cutting duty in June, but farmers say they cannot predict price movements from week to week or build reliable business strategies around such financial uncertainty.

Fertiliser costs are also rising. On 1 January, the government will introduce a new tax based on the carbon footprint of all synthetic fertiliser imported into the UK, adding another cost to farming operations. These price pressures are compounded by unpredictable extreme weather.

A further concern is the potential impact of Donald Trump's threatened ban on diesel exports. Around 30 per cent of UK red diesel supply is currently shipped from the United States. While the UK's supply line has not faced issues to date, future volumes could be affected if the export ban is implemented. These combined pressures are already being reflected in food prices, affecting consumers as well as producers.

How it is being reported

• OPINION: Farming roulette as fuel and fertiliser prices soarTHE current volatility in red diesel prices is a big worry for farmers and that cost hike should concern us all.South Wales Guardian · 19 Oct, 05:42
• OPINION: Farming roulette as fuel and fertiliser prices soarTHE current volatility in red diesel prices is a big worry for farmers and that cost hike should concern us all.Tivyside Advertiser · 19 Oct, 05:42

In this story: UK · Donald Trump · United States · Treasury

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