Skyrocketing input and energy costs are rapidly creating a crisis for British growers, and not only affecting their ability to plant crops next year, but also whether they will be able to invest in the technologies required to reduce carbon emissions from the sector.
New research from NatWest has revealed that 99% of farmers and growers have seen at least one routine expense rise above the general UK CPI inflation rate of 9%. The research also revealed that 70% of farmers surveyed have experienced their energy bills rise above inflation, while 66% had seen fuel, 54% had seen feed and 48% had seen fertiliser costs exceed inflation respectively.
Farmers and growers also reported frustration at not being able to take planned action on climate measures due to the cost crisis. Ian Burrow, Head of Agriculture at NatWest Group, said, “Climate change is a global challenge, but the farming industry can play a critical part in helping the UK reach Net Zero… However, the challenge of input cost rising squeezing margins is currently hampering efforts. We want to provide the financial means and accessibility for farmers to pursue their climate ambitions.”
Elsewhere Farmers Guardian also highlighted the effects of rising costs on growers. Speaking at the NFU hustings event with Conservative leadership hopeful Rishi Sunak, Nottinghamshire farmer Oliver Cunningham, who grows arable and root crops, said his electricity bill was expected to rise 500%.
On Twitter, the Lea Valley Growers Association said the electricity bill for one of its members, Jimmy Russo who grows tomatoes and cucumbers, had risen from £900,000 a year to £14.6 million.
A Government spokesperson told Farmers Guardian, “We understand farmers are facing increased input costs for manufactured fertiliser, livestock feed, energy and fuel and we have announced measures to help mitigate these challenges, including bringing forward 50 per cent of the Basic Payment Scheme payment.
“We are also reducing employer national insurance by increasing the Employment Allowance, slashing fuel duty, introducing a 50% business rates relief and putting the brakes on bill increases by freezing the business rates multiplier.”