Plant protection product prices have surged 47.6% over the past year, according to Defra
British farmers face mounting financial pressure as production costs climb while farmgate returns fall, with new government figures revealing sharp increases in pesticide, fuel and fertiliser prices.
The latest Defra agricultural price indices, published on 29 October, show that farm input prices increased by 8.6% in the year to August 2026, while prices received by farmers for their produce fell by 5.4%.
The figures highlight a growing squeeze on agricultural businesses, with dairy, pig and potato producers among those experiencing particularly steep declines in returns.
Plant protection products recorded the largest individual price increase, surging by 47.6% compared with August 2025, while energy and lubricants rose by 23.3%.
Fertilisers and soil improvers became 13% more expensive, with straight feedingstuffs increasing by 19%, adding further pressure on farms reliant on purchased inputs.
According to Defra, plant protection products and energy and lubricants were the biggest contributors to overall agricultural input inflation, each adding 2.1 percentage points to the annual increase.
Fertilisers and straight feedingstuffs also played a significant role, each contributing a further 1.4 percentage points.
The rising costs come as several major farming sectors face considerably weaker prices for their produce.
Potato prices recorded one of the sharpest falls, dropping by 31.9% year-on-year, while milk prices declined by 17.3%.
Pig prices were 14.7% lower than in August 2025, with cattle and calf prices falling by 7.1%.
Overall, prices for livestock and animal products declined by 9.1%, with milk accounting for the largest downward contribution to the agricultural output price index.
However, the picture was more positive for some crop producers, with wheat prices increasing by 15.6% and barley rising by 11.6%.
Fresh vegetable prices also climbed by 10.1%, helping overall crop output prices increase by 1.3% despite the substantial decline in potato prices.
The figures reveal a wider shift in the relationship between agricultural production costs and returns during 2026.
Defra reports that the input price index overtook the output price index in April, reversing a trend that had seen output prices remain above input prices since December 2023.
By August, the input index stood at 137.9, compared with 134.6 for agricultural outputs, with both measured against a 2020 baseline of 100.
The latest monthly figures indicate that input price pressures have continued, with costs rising by a further 1.4% between July and August, compared with a smaller 0.9% increase in output prices.
Across the first eight months of 2026, the average agricultural input price index was 5.7% higher than the 2025 annual average, while the output index was 4.2% lower.
The contrasting trends raise concerns about the ability of farming businesses to absorb higher operating costs, particularly in sectors already experiencing weaker farmgate returns.
However, the indices measure changes in prices rather than actual farm profitability, which also depends on production volumes, yields and individual business circumstances.
Defra cautioned that most agricultural input price data remain provisional, while plant protection product figures could be subject to larger-than-usual revisions as the department reviews its weighting methodology.
The findings underline the financial pressures facing British agriculture, with farmers paying more for essential production inputs while receiving lower prices for several major commodities.