Survey launched on farm electricity costs amid food security fears

NFU Scotland warned that the "penny hasn’t dropped" with the government when it came to the impact of the energy crisis on farmers
NFU Scotland warned that the "penny hasn’t dropped" with the government when it came to the impact of the energy crisis on farmers

Farmers are being asked to provide details on soaring electricity costs and the impact that is having on their businesses, amid fears that some will leave the industry due to the crisis.

NFU Scotland said the evidence provided to it by farmers and growers would assist in lobbying the UK government and MPs on the ongoing energy crisis.

The union warned that the "penny hasn’t dropped" with the government when it came to the impact that the cost of energy was having on business viability.

Inflation is now currently running at 9.4%, but ‘aginflation’ – the rise in costs that farmers face for their key inputs - is over 23%.

One Scottish vegetable grower explained to NFU Scotland that their current electricity tariff of around 12p per unit will run out at the end of September.

They were quoted 71p per unit for a new contract which meant his electricity bill for the year, primarily to cool and store his potatoes and vegetables, would jump from around £140,000 to over £800,000.

NFU Scotland President Martin Kennedy said this was completely unsustainable: "Amid a food security crisis, he will just stop growing," he warned.

"This price hike, on top of serious issues around the availability and cost of labour, other big input price increases and a supply chain where prices aren't keeping pace with the cost of production makes the decision really simple.

"This is very typical of many farms now making decisions on how to make ends meet, and these decisions all point to a significant contraction in supply of food to feed ourselves."

Mr Kennedy said he feared that responses from many agri-food businesses to electricity price hikes would to simply stop growing, storing or freezing.

He urged MPs to visit farms to see first-hand the detrimental impact that surging electricity bills would have on future food production decisions.

"Unless something is done to address this quickly, we will be in serious short supply of home grown produce," he warned.

The union's survey asks for details on costs, contracts, renewals and whether businesses have renewable electricity sources on farm.

NFU Scotland will then collate a series of case studies to use as supportive evidence for its key asks to the government.

The survey closes for responses on 7 September.