Farm businesses are facing renewed pressure as fuel, fertiliser and energy costs continue to rise
Farmers are being squeezed by rising input costs and weaker output prices, prompting the Ulster Farmers’ Union to warn that domestic food production is coming under growing pressure.
The latest UK agricultural price figures show fertiliser costs were at least 25.9% higher in June than a year earlier, while energy costs were up 20%.
At the same time, the agricultural output price index was 4.3% lower year-on-year, adding to pressure on farm margins.
Six months after the onset of the fuel crisis, the UFU said continued volatility in energy and agricultural input markets was putting further pressure on farm businesses.
Northern Ireland’s agricultural accounts also underline the scale of the industry’s cost base.
Expenditure on fertilisers and lime increased by 32% to ÂŁ133 million in 2025, while total gross agricultural inputs reached ÂŁ2.18 billion.
UFU deputy president Glenn Cuddy said: “Six months on, the impact of geopolitical instability continues to be reflected in the costs facing our farm businesses.”
He said fuel, fertiliser and energy remained fundamental agricultural inputs, with sustained price increases affecting margins, investment decisions and farms’ ability to maintain viable production.
The union is also calling on the government to extend the current reduction in duty on rebated fuel beyond the end of December 2026.
Cuddy said the extension was needed to prevent a sharp rise in fuel costs for agricultural businesses.
But the UFU said its concerns extend beyond fuel taxation, arguing that domestic food production needs to be given a more prominent role in national security and contingency planning.
Cuddy said: “Food security is national security. That cannot simply be a phrase used during periods of international instability, it must be reflected in policy and in the way government values our sector.”
The union argues that Northern Ireland’s established farming base, skilled producers and wider agri-food sector make an important contribution to the UK’s food-producing capacity.
However, it warned that maintaining that capacity depends on farm businesses remaining financially sustainable and able to invest.
The UFU is particularly concerned about what it sees as a disconnect between rising production costs and the returns available to farmers.
Cuddy said producers were being asked to absorb additional costs while also investing in productivity, meeting environmental commitments and maintaining food supplies.
“There must be a sustainable return for agricultural produce which properly reflects the cost and risk involved in its production,” he said.
The union is calling for a more joined-up approach from government, alongside greater public recognition of the pressures facing primary producers.
It said farmers were accustomed to managing volatility, but warned that their capacity to absorb continually rising costs was not unlimited.
The UFU argues that without sustainable returns at farm level, confidence and investment could weaken, putting greater pressure on domestic productive capacity.
Cuddy concluded: “Protecting food security means protecting the productive capacity that underpins it, and that starts with ensuring farmers can secure a sustainable return for what they produce.”