Dorset farmer warns soaring fuel costs could hit food production
A West Dorset farmer has told us the rise in fuel prices couldn’t have come at a “worst time” for the agricultural sector
Last updated 4 hours ago
British farmers are facing “huge consequences” from surging fuel and fertiliser costs linked to conflict in the Middle East, with one Dorset grower warning the sector is being pushed to the brink at a critical time of year.
James Bowditch, who farms in west Dorset, said his business is already feeling the impact of spiralling prices for red diesel – the subsidised fuel used in agricultural machinery.
Prices for the fuel have more than doubled in a matter of weeks, from around 62p per litre before recent military escalation involving Iran to between £1.30 and £1.50 per litre – an increase of up to 150%.
“This couldn’t have come at a worse time of year,” Bowditch said. “We've had full tanks all winter and now, just as we start growing our spring crops, the prices have gone up. We've had to keep ordering fuel while the price keeps flying up.”
Industry analysis suggests the pressure is widespread. The Energy and Climate Intelligence Unit estimates farmers in England could face an additional £337m in fuel costs over the next 12 months if prices remain high.
At the same time, farmers are struggling to offset rising costs through higher crop prices.
National Farmers' Union chief economist Jack Watts warned that, unlike during the war in Ukraine, grain prices have not risen significantly to cushion the blow.
“The conflict is going to make that worse,” he said, adding that input costs could ultimately affect what farmers are able to plant.
Bowditch said the financial squeeze leaves farmers with little room to manoeuvre: “We’re taking the hit on all this increase in cost and we can’t pass it on because we are a price taker, not a price maker.”
With cereal growers typically using around 100 litres of fuel per hectare, the impact of sustained high prices could be severe.
“We are living just from hand to mouth on our food supply,” Bowditch added. “It’s a very dangerous place to get into in an unstable world.”