UK farm input costs rise sharply over past five years – AHDB

Input costs have increased by an average of 44% since 2019

Farm input costs have increased by an average of 44% since 2019, according to AHDB research.

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 were also included in the analysis.

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.

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

While farm input costs increased by more than 40%, the total funding for agriculture in the UK has remained constant at £2.4-billion since the 2019–24 parliament.

“According to our analysis, the farming budget would need to increase by 44% to £3.4bn just to offset the effect of inflation,” added Megan Hesketh, AHDB Lead Data Analyst. “This is without taking into account any other spending required to support the farming sector.”