Question to the Department for Environment, Food and Rural Affairs:

To ask Her Majesty's Government what further steps they will take to support farmers with increased fertiliser and fuel costs.

We are very aware of the significant turbulence in international commodity markets following Russian’s invasion of Ukraine and are closely monitoring the market situation.

Agricultural commodity prices have always been strongly correlated to the price of energy. Farmers face the challenge of rising inputs costs, particularly fertiliser costs, due to the sharp increase in the price of gas. The solution will require us to pioneer new technologies to manufacture more organic based fertiliser products, and to rediscover traditional, more established techniques such as using nitrogen fixing legumes and clovers as an alternative to fertiliser.

The Government has recently announced steps to assist farmers with the availability of fertilisers for the coming growing season to help address uncertainty amongst growers and keep costs down for farmers. These include delays to changes to the use of urea; revised and improved statutory guidance on the use of slurry; and the publication of further details of the Sustainable Farming Incentive. The Government has announced that it will pay farmers to help with the costs of sowing nitrogen fixing plants and green manures to reduce dependence on manufactured fertilisers, and that farmers will be further supported through new slurry storage grants.

We recognise that fertiliser pressures on the livestock and arable sectors may differ, particularly over the farming seasons. On the 31 March, Minister Prentis hosted the first meeting of the Fertiliser Roundtable with key industry bodies to discuss potential mitigations to the challenges which global supply pressures are causing. Ministers will continue to meet with key industry bodies for further fertiliser round-table sessions in the coming months, to help identify and mitigate potential risks

Further support in the form of guidance from fertiliser suppliers and agricultural organisations such as National Farmers Union can be found from various public sources. Defra is aware that AHDB have published many helpful public pieces of guidance, advice and webinar recordings on mitigating high fertiliser prices. They can be found on the AHDB website.

We are also seeing high costs for red diesel and we are working with the industry to identify where mitigations are available. We continue to keep the market situation under review through UK Agriculture Market Monitoring Group, which monitors UK agricultural markets including price, supply, inputs, trade and recent developments. We are increasing our engagement with industry to supplement our analysis with real time intelligence.