Input costs for UK farmers are rising at their fastest rate since early 2022, the latest analysis by The Andersons Centre shows.

The consultancy firm’s measure of “Agflation” sat at 7.6% for March 2026, which is well ahead of the latest consumer price index of 3%.

The current spike in the cost of farming is being driven by the conflict in Iran, particularly disruption at the key shipping route at the Strait of Hormuz.

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The rise in fertiliser prices since early March, along with red diesel prices and other energy costs, are key factors behind the jump in agflation. But the current cost of farming index is still well below levels seen after the start of Russia’s invasion of Ukraine in 2022, when agflation peaked at over 30%.

In the longer term, The Andersons Centre has concerns about a prolonged conflict in Iran as it could have “broader inflationary spillovers” that may lead to “renewed pressure on consumer demand”.

“This could create challenges for red meat as prices for beef and lamb have risen markedly in recent years and are now substantially higher than pig meat and poultry meat prices,” the consultants state.