Farm input costs have increased by an average of 44% since 2019, according to new research from AHDB.
The data examined how farming costs have changed in line with inflation between December 2019 and May 2024, taking into account a ‘basket of goods’ based on typical costs incurred by farms.
Straw costs (bedding) more than doubled, while electricity, fertiliser, animal feed and motor fuels increased by 38-50%. Other costs such as veterinary treatment, machinery, transport and labour were also included in the analysis.
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When broken down by sector, pig farming saw the greatest input costs increase at 54%, with feed prices being the main driver.
Dairy farms and beef and sheep farms saw a 44% and 39% increase respectively, with feed again being a considerable contributing factor.
For cereals and mixed farms, inputs increased by 43%, with fertiliser and machinery-related costs being the key drivers.
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.”
While farm input costs increased by more than 40%, the total funding for agriculture in the UK has remained constant at £2.4bn since the 2019-24 parliament.
Megan Hesketh, lead data analyst, at AHDB added: “According to our analysis, the farming budget would need to increase by 44% to £3.4bn just to offset the effect of inflation. This is without taking into account any other spending required to support the farming sector.”
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