Farmers continue to face high fertiliser bills despite government efforts to lower import costs
Farmers could benefit from cuts to fertiliser import tariffs next month, but the NFU has warned that cheaper imports may not translate into lower prices on farms.
The Treasury has announced plans to remove tariffs of between 2% and 6.5% on selected fertiliser products as part of a wider package aimed at easing rising costs.
The changes are expected to take effect on 26 November, potentially allowing suppliers to source fertiliser more cheaply from overseas.
However, the NFU has questioned how much difference the measures will make to agricultural businesses already struggling with high input costs.
NFU president Tom Bradshaw warned that any benefits would depend on which fertilisers were included and whether suppliers passed on the savings.
“Any impact at farm level will depend hugely on whether the products covered are those UK farmers use and whether those reductions are passed through the supply chain,” he said.
The tariff reductions do not mean farmers will automatically see fertiliser bills fall by between 2% and 6.5%.
Actual savings will depend on the products purchased, their country of origin and how importers and merchants respond.
The government's earlier consultation identified several fertiliser products for potential tariff suspensions, including urea, ammonium sulphate, diammonium phosphate and certain compound fertilisers.
However, urea ammonium nitrate (UAN) was excluded from the initial list, and the final detailed product coverage has yet to be confirmed.
The government previously proposed a temporary, one-year suspension of fertiliser tariffs rather than permanent removal.
Defra Secretary Dame Angela Eagle said the measures were intended to ease pressure on agricultural businesses and improve access to fertiliser supplies.
“This government is taking decisive action to help ease rising input costs, giving farming businesses more room to breathe,” she said.
“Cutting fertiliser tariffs is a straightforward way to back British agriculture, strengthen supply chains and support the sector.”
The government believes reducing import duties could encourage suppliers to purchase fertiliser from a wider range of countries, potentially increasing competition and lowering costs.
The announcement follows a difficult period for British agriculture, with fertiliser prices remaining under pressure from international market volatility and higher energy costs.
However, the NFU is also concerned about the introduction of the Carbon Border Adjustment Mechanism (CBAM) on 1 January 2027.
The mechanism will apply a carbon-related charge to certain imported products, including fertilisers, based on emissions associated with their production.
It is intended to ensure imported goods face a comparable carbon price to those produced domestically.
The NFU fears the additional charges could increase fertiliser costs for farmers, potentially offsetting some of the benefits from lower import tariffs.
With the Autumn Budget due on Wednesday (28 October), the union is urging ministers to address these concerns and provide further support for farming businesses.
“The government still has time to back British farming and our food producers in tomorrow’s Budget,” Mr Bradshaw said.
The NFU also wants the government to expand investment allowances for agricultural infrastructure, including on-farm reservoirs.
It is continuing to call for changes to Agricultural Property Relief and Business Property Relief to be reversed, arguing that the reforms threaten farm investment and succession planning.
Alongside fertiliser, the Treasury is planning to remove the 4% import tariff on kerosene, which is widely used for heating oil in rural homes and businesses.
The measure could reduce import costs for suppliers, although any savings for households will depend on whether lower costs are passed on.
Both measures form part of a wider government package removing tariffs on more than 100 products to ease financial pressures on businesses and consumers.
For farmers facing high production costs, however, the key question remains whether lower import duties will deliver meaningful savings when fertiliser is purchased.
With CBAM approaching in 2027, the overall impact on farm input costs remains uncertain.