The NFU is renewing its call for government backed, interest-free loans to help farmers following a message from the UK Fertiliser Farming Stakeholder Group about fertiliser supplies ahead of the upcoming growing season.
NFU Deputy President Paul Tompkins said: “The Middle East conflict followed by one of the worst droughts on record, has led to a terrible combination of high production costs and low yield, meaning many farmers will be struggling to break even, let alone make a profit.
“We are facing an immediate crisis in cashflow and confidence. That’s why we’re calling for a government backed, interest-free loan, linked to the losses caused by this summer’s drought, which would give farm businesses the working capital to produce next year’s food.
“Fertiliser is a crucial component in producing much of the nation’s calories. Some breathing space and financial stability will boost confidence and hopefully help prevent a spike of late fertiliser orders, but we need action now or it will be too late.”
The Agricultural Industries Confederation (AIC) has raised concerns over supply this season, warning there is less flexibility than previous seasons.
There is uncertainty over Russian-origin fertiliser with ongoing strikes in the Black Sea and the possibility of sanctions and banking restrictions. At the same time, disruption in the Gulf region has added pressure to the global nitrogen market.
As a result, the AIC warns that products that might previously have been available from one origin may not be available on the same terms, at the same time or with the same confidence. If major global buyers compete for alternative supply, smaller markets such as the UK can become exposed to tighter availability and higher replacement costs.
