Farm input costs in the UK have increased by an average of 44% since 2019 according to research by the Agriculture and Horticulture Development Board (AHDB).
The research 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 costs were also included in the analysis.
Farm input costs
When broken down by sector, pig farming saw the greatest input costs increase at 54%, with feed prices the main driver.
Dairy farms and beef and sheep farms saw a 44% and 39% increase respectively, with feed again making a considerable contribution.
For cereals and mixed farms, inputs increased by 43%, with fertiliser and machinery related costs being the key drivers.
AHDB senior economist, Amandeep Kaur Purewal 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 pot for agriculture in the UK has remained constant at £2.4 billion since the 2019-2024 parliament.
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.
“This is without taking into account any other spending required to support the farming sector.”