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    Markets & Policy

    Farm input costs rise by almost 50% in past five years

    Evie ClarkBy Evie ClarkOctober 4, 20242 Mins Read
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    Farm input costs have risen by an average of 44% since 2019 according to research carried out by the Agriculture and Horticulture Development Board (AHDB). The research calculated consumer price inflation using a ‘basket of goods’ based on goods and services consumed by a ‘typical’ household.

    Straw costs (bedding) more than doubled between December 2019 and May 2024 with electricity, fertiliser, animal feed and motor fuels increasing by 38-50% over the same period.

    Cereal and mixed farms had a 43% increase with fertiliser and machinery-related costs causing their sharp rise.

    Pig farming saw the greatest input costs gain. Feed prices were the main driver of the 54% increase.

    Dairy and beef farms suffered a similar fate with their 44% and 39% respective increases also driven by feed prices.

    Other costs such as veterinary treatment, machinery, transport and labour expenses were also included in the research.

    Amandeep Kaur Purewal, AHDB senior economist, said: “Our research highlights the challenges faced by farmers as rising input costs continue to put pressure on their businesses.”

    AHDB lead data analyst Megan Hesketh added: “According to our analysis, the farming budget would need to increase by 44% to £3.4 billion just to offset the effect of inflation […] without taking into account any other spending required to support the farming sector.”

    While costs have increased by more than 40%, funding for agriculture has remained unchanged at £2.4 billion since the 2019-24 parliament.

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    Evie Clark

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