Defra steps in to dig farmers out of fertilizer crisis with emergency mitigation measures

31 Mar 2022 --- The UK Department for the Environment, Food and Rural Affairs (Defra) has called a crisis planning meeting with farmers to brainstorm solutions that will mitigate burgeoning fertilizer prices.

Ammonium nitrate fertilizer prices alone are up to £1,000 (US$ 1,300) a metric ton compared with £280 (US$370) a ton, last year. The cost of fertilizer first rose in response to the increase in wholesale gas prices, based on the levels of energy needed for production.

Now government officials are urgently trying to find solutions for the rising costs of food production. The Russian invasion of Ukraine has made the situation worse by disrupting exports and increasing production costs. Reports have emerged of farmers hoarding as a result of a recent price hike. 

Insights from emergency roundtable
A Defra hosted roundtable is underway and includes the National Farmers’ Union, the Agriculture and Horticulture Development Board, the Country Land and Business Association and Tenant Farmers Association.Defra will make a farming industry self-regulation approach available.

Industry players are in the process of brainstorming alternatives to ammonium nitrate fertilizer such as those produced from organic material as well as the use of some traditional farming practices where crops are grown without fertilizer.

Defra says the government will pay farmers to help them with the cost of sowing nitrogen-fixing plants such as legumes and clovers. This will reduce some of their dependence on manufactured fertilizers.

On the other hand, farmers who are facing increased costs for fuel and animal feed have warned they will offset the higher prices by buying less fertilizer. 

This could in turn lead to lower crop production at a time when supplies of cereals are already threatened by Russia’s invasion of Ukraine, a major exporter. 

Brands in premium nutrition categories will have to work even harder to retain their customers as companies and consumers alike are feeling the onslaught of the supply chain crisis and inflation, a UK and US survey has revealed. 

Measured approach to looming crisis
Defra introduced a delay in any changes permitting the use of urea fertilizer, to help UK farmers deal with rising prices. Prior to the crisis, the use of urea fertilizer was expected to be reduced to curb air pollution, following a government consultation in 2020. 

The measures will not be introduced until April 2023. Changes to the use of urea fertilizer will be delayed to help farmers manage costs and give them more time to adapt.

Furthermore, farmers will be allowed to continue to use urea within an accreditation scheme, audited by Red Tractor. Guidance on Farming Rules for Water has been revised to allow autumn manure spreading, and new slurry storage grants will be made available this year.

Defra will also make a farming industry self-regulation approach available for the use of solid urea fertilizers.

By Inga de Jong