The Farming Social Hub - a voice for the farming community

Farming inputs continue to soar in price

Farmers have had to endure a staggering 23 per cent rise in the cost of inputs in the past six months, with cereals and oil seed rape suffering the highest rises in prices.

The figures, supplied by the AF Aginflation Index, reports double digit inflation for animal feed, fuel and fertiliser, with increases at 27 per cent, 29.4 per cent and 107.7 per cent respectively.

For consumers this inevitably means a rise in the price of food and the weekly shopping bill with the total food Retail Price Index rising over the same six months period by an average of 5.6 per cent. However, while the cost to consumers is beginning to follow the sharp upward curve of Aginflation it is not at a rate to supply prices to farmers that cover their increased costs.

The only food group showing negative inflation is potatoes at -2.3 per cent. Dairy enterprises are seeing inflation of 21.23 per cent in the past six months but a rise in value to 19 per cent is going some way towards closing the gap.

AF chief executive David Horton-Fawkes said the latest figures illustrated the crisis many farmers were facing, and the consequences would be felt across society.

‘The causes are deeply rooted and go beyond the appalling events in Ukraine and the continued lockdowns in China,’ he explained.

‘Farmers are inherently resourceful, but cash flow now poses an existential threat to many businesses because some simply won’t be able to afford to grow crops or raise livestock next year.’