NFU urges farmers to keep a close eye on costs

May 8 2008 by Sam Wood, The Journal

FARMERS have been particularly badly affected by the rise in fuel prices and the NFU is urging its members to keep a close eye on costs.

Red diesel has shot up from 17p per litre in 2002 to its current price of around 60p per litre, over triple in just six years.

And fertiliser has seen huge price rises in the past 12 months. Pre-ordered fertiliser for this spring has cost between £180 and £250 a tonne. But the current price is £300 a tonne and is expected to rise further.

One of the key drivers has been the massive global demand for cereals, while rising oil and gas prices have impacted on manufacturing costs.

This has led the National Farmers Union to advise farmers not to be afraid to shop around to make sure they get the best deal on inputs like fuel and fertiliser.

In a bid to help members keep on top of the situation the NFU will be setting up a new monthly “Inputs Monitor” price comparator and input update report which will provide them with the latest information on costs.

NFU deputy president Meurig Raymond said it was important members were not distracted by higher output prices and made sure they were getting the best deal they could, especially given the effect rising input costs were having on farm businesses.

He said: “While some sectors are seeing high output prices at the moment it is important farmers keep their eyes firmly fixed on the cost of inputs and shop around to make sure they’re getting the best deal. The new monthly price comparison report will ensure members can stay up to date with the latest situation.

“As well as dealing with rising input costs, farmers are also extremely frustrated by the recent Budget proposal regarding Vehicle Excise Duty and particularly how it will affect genuine working vehicles. We will be lobbying strongly against the retrospective element of the VED proposal and looking at ways to improve the situation for working vehicles which farmers have no choice but to use on their farms.”