In a joint statement, the four unions, NFU Cymru, Ulster Farmers’ Union, National Farmers’ Union (NFU) and NFU Scotland, have highlighted the significant uncertainty facing farmers as volatility in global energy markets, linked to ongoing tensions in the Middle East, continues to drive fluctuations in the cost and availability of key inputs such as red diesel and fertiliser.
Increasing pressure
The union leaders said: “Farm businesses across the UK are facing increasing pressure as a result of global events beyond their control. Volatility in fuel and fertiliser markets is creating real uncertainty at farm level, with implications for food production, supply chains and ultimately consumers. Of particular concern is the lack of transparency in how prices for key agricultural inputs are set. Many farmers are being asked to commit to purchases without clear or timely information, making it extremely difficult to plan and manage already tight margins. We welcome moves by regulators to increase monitoring of fuel and fertiliser markets, but more must be done to ensure fairness, transparency and accountability across the supply chain.”
The unions are calling on governments across the UK to take coordinated action, including:
- Improving transparency in the pricing of red diesel and fertiliser, including more frequent and accessible market data.
- Ensuring fair market practices, with close monitoring of supply chains to ensure resilience
- Strengthening resilience within the agricultural sector, recognising the essential role of domestic food production in times of global instability.
- Providing clarity on future policy measures, including the development and implementation of the Carbon Border Adjustment Mechanism (CBAM), and its potential impact on agricultural inputs such as fertiliser.
Vulnerability
The unions added: “Global political tensions are increasingly exposing the vulnerability of UK food production to external shocks. It is essential that governments work with the industry to build resilience and ensure that farmers are not left bearing disproportionate risk. A stable and sustainable farming sector is essential for the UK’s food security, economic stability and environmental goals, but this can only be achieved if farm businesses are profitable. Profitability underpins everything. We are ready to collaborate constructively with governments to tackle both the immediate challenges and the longer-term implications of this crisis.”