Fertiliser price shock sparks NFU call for resilience plan

British farmers could face difficult decisions over whether to plant crops for 2027 unless fertiliser costs are brought under control, the NFU has warned.

The union has outlined a new Fertiliser Resilience Plan in response to rising production costs linked to the conflict in the Middle East.

It says UK agriculture remains highly exposed to global energy and fertiliser markets, a vulnerability first seen during the war in Ukraine and now being felt again amid disruption around the Strait of Hormuz.

Fertiliser is one of the biggest input costs for arable growers and plays a central role in crop yields, making price spikes a direct threat to farm margins and food production.

The NFU said fertiliser prices in April were almost 40% higher than pre-conflict levels and remain elevated.

Prices have already exceeded £500 per tonne several times since the conflict began, with urea reaching £635/t and imported ammonium nitrate hitting £535/t in April.

The UK is particularly vulnerable to global shocks because around 60% of its nitrogen fertiliser is imported, while the rest is processed or produced in the UK using imported ammonia.

With farmers and growers already looking ahead to the 2027 growing season, the NFU said urgent action was needed to improve affordability, build resilience and safeguard domestic food production.

A key part of the plan is a call for government support to be triggered if imported ammonium nitrate reaches £500/t.

Under the proposal, ministers would launch a scheme mirroring EU compensation measures, allowing growers to claim support covering up to 70% of additional fertiliser costs, capped at £50,000.

The NFU said the figure should be kept under review based on commodity market conditions.

The plan also calls for the government to postpone the introduction of the Carbon Border Adjustment Mechanism, known as CBAM, and carry out a market review in 12 months.

The union warned that introducing CBAM could further increase fertiliser costs, create import friction and risk adding to food price inflation.

It is also urging AHDB to strengthen knowledge exchange on nutrient management, particularly where growers may switch products, delay applications or reduce fertiliser use due to cost pressures.

The NFU said better guidance would help reduce the risk of crop productivity being damaged by decisions on nutrient use.

The union also wants greater transparency in the fertiliser market, including more information on trade, stocks, usage and relative pricing.

It said this would help growers make more informed decisions when buying fertiliser.

NFU President Tom Bradshaw said: “British farmers and growers continue to be placed under immense pressure as a result of the conflict in the Middle East, which is squeezing budgets and knocking business confidence.

“The increasing costs of fertiliser, energy and fuel in the run-up to this year’s harvest has already made things incredibly challenging for farm businesses.”

He said that while the 2026 harvest had yet to begin, farmers were already looking ahead to next year’s crops.

“Fertiliser for 2027 must be affordable. If it is not, some farmers and growers could be left facing incredibly tough decisions about whether to try to grow a crop with reduced fertiliser applications, or whether to plant at all.

“It is vital both industry and government take the necessary actions now to help ease this strain.

“In the long term, it all comes down to resilience. We can't keep being collateral damage to global politics.

“We need to find ways to build fairness, transparency and support into our domestic food production system so we can continue to feed 70 million people three times a day.”

The announcement comes as the NFU launches its #YourHarvest campaign, aimed at promoting and celebrating the work of British arable farmers.

The campaign encourages farmers to share videos on social media showing how crops grown in British fields are turned into the country’s food and drink.

NFU Combinable Crops Board Chair Jamie Burrows said: “The #YourHarvest campaign is a great opportunity to shine a light on all the incredible work farmers are doing to produce the food and drink that keeps the nation going.

“This is especially important to highlight given the unprecedented challenges farmers and growers are facing at the moment.

“Fertiliser is a key input that British farmers rely on to grow the crops that eventually end up on your kitchen table.

“To ensure successful harvests both this year and in the years to come, we must ensure it is readily available at a reasonable cost to farmers.”