NFU proposes support measures, CBAM delay, and market reforms to protect UK farmers from soaring fertiliser costs.
The National Farmers’ Union (NFU) has introduced a comprehensive Fertiliser Resilience Plan aimed at protecting UK farmers and growers from escalating production costs caused by ongoing geopolitical tensions in the Middle East. The plan outlines a range of immediate measures that the government and agricultural industry should adopt to strengthen the resilience of domestic food production and reduce the impact of rising fertiliser prices on farm businesses.
The British agricultural sector remains highly vulnerable to disruptions in global energy and fertiliser markets. This vulnerability was first exposed during the conflict in Ukraine and has intensified further as instability in the Middle East continues to affect critical trade routes. In particular, disruptions linked to the Strait of Hormuz have placed additional pressure on fertiliser supply chains, contributing to higher input costs for farmers across the United Kingdom.
Fertiliser prices have risen sharply since the outbreak of the conflict. By April, prices were nearly 40% higher than levels seen before the war. Market volatility has remained significant, with fertiliser costs consistently staying above historical averages. Since the conflict began, fertiliser prices have repeatedly surpassed £500 per tonne. Urea prices climbed to approximately £635 per tonne, while imported ammonium nitrate reached around £535 per tonne during April, highlighting the severity of the cost pressures facing agricultural producers.
The UK's dependence on imports has further amplified its exposure to global market shocks. Approximately 60% of the country's nitrogen fertiliser requirements are imported directly. The remaining domestic production and processing capacity relies heavily on imported ammonia, meaning the nation remains vulnerable to international supply disruptions and price fluctuations regardless of where final production occurs.
As farmers begin planning for the 2027 growing season, the NFU is urging swift action to ensure fertiliser remains affordable and accessible. One of the key proposals is the establishment of a government-backed support mechanism that would be activated when imported ammonium nitrate prices reach £500 per tonne. Under this proposal, the UK government would introduce a compensation scheme similar to those implemented within the European Union. Eligible growers could receive support covering up to 70% of additional fertiliser expenses, with payments capped at £50,000 per farm business.
Another major recommendation concerns the planned implementation of the Carbon Border Adjustment Mechanism (CBAM). The NFU has called on the government to delay the introduction of CBAM and undertake a comprehensive market review over the next 12 months. According to the organisation, introducing the mechanism under current market conditions could further increase fertiliser costs, create additional import-related challenges, and contribute to rising food prices for consumers.
The resilience plan also emphasizes the importance of improving nutrient management knowledge among farmers. The NFU believes that the Agriculture and Horticulture Development Board (AHDB) should expand its efforts to address information gaps related to fertiliser usage and nutrient management practices. Better guidance could help growers make informed decisions and avoid reducing or delaying essential nutrient applications that may negatively affect crop yields and productivity.
In addition, the NFU is calling for greater transparency across the fertiliser supply chain. It recommends that AHDB provide more detailed information regarding fertiliser imports, stock levels, usage patterns, trade flows, and relative pricing. Improved transparency would help farmers make better purchasing decisions and reduce uncertainty in an increasingly volatile market.
NFU President Tom Bradshaw warned that rising fertiliser, fuel, and energy costs are placing enormous pressure on farm businesses and undermining confidence across the sector. He stressed that affordable fertiliser supplies for the 2027 season are essential, noting that some growers may otherwise face difficult choices regarding fertiliser application rates or even whether to plant crops at all.
Bradshaw further argued that the UK must develop a more resilient agricultural system that is less exposed to global political disruptions. He emphasized the need for greater fairness, transparency, and long-term support mechanisms to safeguard domestic food production and ensure the country can continue feeding its population reliably.
The announcement of the Fertiliser Resilience Plan coincides with the launch of the NFU’s #YourHarvest campaign, which celebrates the contribution of British arable farmers to the nation’s food and drink supply. NFU Combinable Crops Board Chair Jamie Burrows highlighted the critical role fertiliser plays in crop production and stressed the importance of maintaining reliable and affordable access to this essential agricultural input to secure future harvests and food security.
The NFU's proposed Fertiliser Resilience Plan could have significant implications for agricultural products, farmers, fertiliser markets, and food supply chains both within the UK and globally. If the UK government adopts measures such as fertiliser cost compensation and delays the Carbon Border Adjustment Mechanism (CBAM), domestic farmers would gain short-term financial relief, helping maintain fertiliser application rates and supporting crop production for the 2027 growing season. This would reduce the risk of lower yields in key crops such as wheat, barley, oilseed rape, and vegetables, helping stabilize local food supplies and limit upward pressure on food prices.
For UK farmers, the proposed support scheme could improve profitability and business confidence by offsetting a portion of soaring input costs. Greater market transparency and enhanced nutrient-management guidance may also enable growers to make more efficient purchasing and application decisions, improving productivity despite volatile market conditions. In the absence of such support, many producers could reduce fertiliser usage, potentially leading to lower yields and reduced planting areas.
The fertiliser sector could experience stronger demand as government-backed support would encourage farmers to continue purchasing nitrogen-based products such as urea and ammonium nitrate despite elevated prices. However, delaying CBAM could also increase reliance on imported fertilisers, maintaining competitive pricing but potentially slowing investment in lower-carbon domestic fertiliser production.
From a broader agricultural perspective, the plan could strengthen the resilience of the UK food production system and reduce the likelihood of supply shortages. Stable crop production would benefit food processors, livestock producers, and retailers by ensuring a more consistent supply of agricultural commodities.
Globally, the policy could contribute to sustained demand for internationally traded fertilisers and ammonia, particularly from major exporters in the Middle East, North Africa, and North America. If similar support measures are adopted in other countries facing high fertiliser costs, global fertiliser demand could remain robust, supporting prices. Conversely, stronger crop production in the UK and Europe could help moderate global grain and oilseed prices by preventing significant supply reductions. Overall, the NFU's proposals aim to cushion farmers from geopolitical disruptions while supporting food security, agricultural output, and fertiliser market stability in both local and international markets.
