News.

Farmers are currently facing significant increases in input costs, particularly for red diesel and fertiliser, driven by ongoing global pressures and instability in the Middle East.

Much of the world’s urea supply, used in fertiliser production, is currently affected by disruption in the Strait of Hormuz. As a result, fertiliser pricing is volatile, with many suppliers now pricing at the point of delivery rather than offering pre-booked rates.

Indicative prices as of 25th March:

• Nitrogen: approximately £500 per tonne
• DAP (maize fertiliser): approximately £800 per tonne

Red diesel prices are also rising rapidly. As of 24th March, prices are ranging between 115p–125p per litre, with increases of up to 10p per litre in a single day.

With spring workloads now intensifying, including planting potatoes and cereals, alongside preparations for first cut silage, diesel demand is expected to increase significantly in the coming weeks. Farmers are being advised to monitor fuel levels closely and plan ahead to avoid disruption.

There are also wider cost pressures to consider:

• Rising costs for oils and servicing
• Increased prices for silage wrap
• Contractors introducing surcharges due to higher operating costs

Combined with high fertiliser prices and potential global impacts on feed crop production (including soya and maize), there is concern that feed prices could rise further into the autumn. Alongside continued pressure on milk prices, this presents a challenging outlook for many farming businesses.

If you have concerns, need advice or would like to talk things through, please get in touch with Edward Richardson on 07775 667825 or edward@farmcornwall.co.uk, we’re here to help.