Britain’s farmers are facing a new cost crisis as the ongoing conflict involving Iran causes fuel and fertiliser prices to soar, raising concerns about another wave of food inflation.
The price of red diesel—the fuel used to power tractors and agricultural machinery—has surged by around 55% since February.
Some farmers are now being quoted prices as high as 135p per litre, up from approximately 67p just weeks ago.
This price increase follows disruptions to shipping through the Strait of Hormuz, a crucial route for global energy and chemical supplies, which has effectively been shut down amidst escalating tensions.
Robbie Moore, the shadow farming minister, warned that this crisis is putting additional pressure on an already strained agricultural sector. “With the Strait of Hormuz closed, red diesel prices have dramatically increased,” he stated to GB News, emphasising that farmers are now dealing with rising input costs across the board.
Fertiliser prices have also risen sharply, with ammonia reaching a three-year high. Approximately 35% of nitrogen-based fertilisers and 45% of global sulphur exports—a key component of phosphate fertilisers—pass through the Strait, meaning any disruption has immediate global repercussions.
For many arable farmers, fertiliser accounts for nearly a quarter of their total costs, while fuel accounts for about 10%. Together, these two factors mean that over a third of core production costs are increasing simultaneously.
This latest shock adds to existing pressures from weak crop prices and a challenging harvest, leaving many farms in an increasingly precarious financial position. Mr Moore warned that the increased costs would eventually be passed on to consumers.
“All of this increases the cost of production,” he told GB News. “That will ultimately have consequences for food inflation, impacting the vast majority of people doing their weekly shopping.”
These warnings hint at the possibility of renewed price surges in supermarkets, just as households had begun to experience some relief from the cost-of-living crisis.
Analysts noted that this situation highlights how quickly geopolitical tensions can ripple through supply chains—from global shipping routes to supermarket shelves—placing farmers once again on the frontline of economic shocks.
