AHDB Reports 44% Rise in UK Farm Input Costs Over Five Years
Source: DairyNews.today
The cost of farming inputs in the UK has surged by an average of 44% since 2019, according to recent research from the Agriculture and Horticulture Development Board (AHDB). The study, which analyzed a “basket of goods” representing typical farm expenses, underscores the financial pressures faced by UK farmers as essential costs continue to outpace funding levels.
The AHDB’s research, spanning December 2019 to May 2024, reveals that the price of various inputs, such as straw (bedding), electricity, fertilizer, animal feed, and motor fuels, has risen by 38–50%. Notably, straw costs have more than doubled, reflecting significant inflation across the sector. Other costs, including veterinary services, machinery, transport, and labor, were also factored into the analysis.
When broken down by sector, pig farming has experienced the highest increase in input costs at 54%, largely driven by escalating feed prices. Dairy farms and beef and sheep operations have seen input costs rise by 44% and 39%, respectively, with feed again as a major contributor. Meanwhile, cereals and mixed farms recorded a 43% increase, driven by fertilizer and machinery-related costs.
Amandeep Kaur Purewal, Senior Economist at AHDB, commented on the findings: “Our research highlights the challenges faced by farmers as rising input costs continue to put pressure on their businesses.”
Despite the sharp rise in input costs, total agricultural funding in the UK has remained static at £2.4 billion over the current parliamentary period (2019–2024). AHDB Lead Data Analyst Megan Hesketh emphasized the need for increased support: “According to our analysis, the farming budget would need to increase by 44% to £3.4 billion just to offset the effect of inflation. This is without taking into account any additional spending required to support the farming sector.”
As UK farmers face the growing disparity between input costs and funding, the AHDB’s findings call attention to the need for revised financial support to sustain the industry. With many farmers already operating on tight margins, an increase in the agricultural budget could help alleviate the financial strain caused by inflation and ensure the continued viability of UK agriculture.
When broken down by sector, pig farming has experienced the highest increase in input costs at 54%, largely driven by escalating feed prices. Dairy farms and beef and sheep operations have seen input costs rise by 44% and 39%, respectively, with feed again as a major contributor. Meanwhile, cereals and mixed farms recorded a 43% increase, driven by fertilizer and machinery-related costs.
Amandeep Kaur Purewal, Senior Economist at AHDB, commented on the findings: “Our research highlights the challenges faced by farmers as rising input costs continue to put pressure on their businesses.”
Despite the sharp rise in input costs, total agricultural funding in the UK has remained static at £2.4 billion over the current parliamentary period (2019–2024). AHDB Lead Data Analyst Megan Hesketh emphasized the need for increased support: “According to our analysis, the farming budget would need to increase by 44% to £3.4 billion just to offset the effect of inflation. This is without taking into account any additional spending required to support the farming sector.”
As UK farmers face the growing disparity between input costs and funding, the AHDB’s findings call attention to the need for revised financial support to sustain the industry. With many farmers already operating on tight margins, an increase in the agricultural budget could help alleviate the financial strain caused by inflation and ensure the continued viability of UK agriculture.
