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New agricultural business figures from Andersons for April show that inflation now stands at 30.6% for the industry.
Since the turn of the year, inflation in agriculture, or ‘agflation’, has been rapidly increasing, driven primarily by Russia’s invasion of Ukraine and global supply chain issues.
Due to both countries being major agricultural powerhouses, the conflict has had the biggest effect on feed, fuel, and fertiliser prices.
These underpin most of the agricultural production costs, and costs are also increasing elsewhere, such as contracting, crop protection products and building materials.
Many farm businesses are now feeling a severe squeeze on profit margins, with inflation expected to remain in the short-to-medium term.
The CBI, which represents British businesses, said it is ‘critical’ that the government offers more support to people facing hardship in this ‘historic’ squeeze.
If your business is looking to unlock capital or raise cash to purchase new agricultural equipment, you can contact us on 0115 958 6872 or email [email protected]
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