Pig farm input costs have increased by 54% since 2019, more than in any other sector, with feed prices being the main driver behind the increase.
Farm input costs have risen by an average 44% across the farming sectors since 2019, according to research carried out by AHDB.
The research examined how farming costs have changed in line with inflation between December 2019 and May 2024, taking into account a ‘basket of goods’ based on typical costs incurred by farms.
Straw costs more than doubled, while electricity, fertiliser, animal feed and motor fuels increased by 38-50%. Other costs such as veterinary treatment, machinery, transport and labour costs were also included in the analysis.
While the pig sector has seen the biggest increase, dairy and beef farms suffered a similar fate, seeing respective increases of 44% and 39% also driven by feed prices.
Cereal and mixed farms had a 43% increase, with fertiliser and machinery related costs causing their sharp rise.
Amandeep Kaur Purewal, AHDB senior economist, said: “Our research highlights the challenges faced by farmers as rising input costs continue to put pressure on their businesses.”
While costs have increased by more than 40%, funding for agriculture has remained unchanged at £2.4 billion since the 2019-24 parliament.
AHDB lead data analyst Megan Hesketh added: “According to our analysis, the farming budget would need to increase by 44% to £3.4 billion just to offset the effect of inflation […] without taking not account any other spending required to support the farming sector.”
