Farmers Urge Government To Cut Soaring Fuel Duty Costs

How long can farms shoulder skyrocketing fuel bills before crops and livestock pay the price? The debate over fuel duty has moved from kitchen-table conversations to urgent calls for relief from farmers across the region. The issue is now central to decisions about autumn planting and the future of some family farms.

Farmers say fuel costs have doubled since the start of the Middle East conflict and that relief on fuel duty would ease immediate pressure. Ashley Jones, farmer and Cornwall National Farmers’ Union (NFU) chairman, said “stressed and worried” colleagues had been calling him daily about their heavy reliance on fuel for running equipment. Jones warned if fuel prices remained high some may not plant crops in the autumn because of uncertainty about costs.

Plans for a conditional ceasefire between the US and Iran meant oil prices continued to fall on Wednesday. Still, brent crude, the standard oil measure, is 30% more expensive than it was before the conflict began on 28 February. Jones, who runs Smeaton Farm near Saltash, said: “We’re so heavily reliant on fuel to do our day-to-day jobs, whether it’s looking after animals or looking after the crops; we can’t be without it.”

He set out how much is involved on a typical day. They needed 250 to 300 litres (55 to 65 gallons) of fuel a day – costing £200 before the conflict and nearly £400 now – for each tractor. “So, we’ve got a very big fuel bill daily.” He warned that “Farmers who potentially have a cashflow problem are going to struggle to stomach a higher fuel bill.”

Cutting the fuel duty would offer immediate relief to farms facing cascading costs.

Jones argued that a change in taxation would help. He said a reduction in the duty charged on fuel, he argued, “would be a great way to go to begin with”. “I fully appreciate that diesel can’t be subsidised back down to its original price, it just can’t be done. But definitely a reduction in fuel duty would be nice to see,” he added.

Red diesel, a fuel used by farmers in off-road vehicles, machinery and heating, is subject to lower tax, but its price can still rise amid volatility in the wider oil market. Like many, Jones said he bought stocks of fertiliser before the conflict began, but the ongoing uncertainty was still taking a toll on the sector.

Neil Cole, who owns a sheep farm in Princetown, on Dartmoor in Devon, added his voice to calls for lower fuel duty, saying “doubling” fuel and fertiliser prices were the latest in a long list of challenges. He said: “I don’t know how many other industries could stand the volatility we are getting.” He also warned: “Our beef and lamb doesn’t double in price overnight, so you can imagine when we’re dealing with such big figures with such small profits… it’s causing real financial problems for us.” He added: “It’s just feels like one thing after another – we’re having to work out what staff to lay off with our contractors.” “The whole system of food security in this country is a shambles.” Cole said he would “keep going” but said younger generations might not want to tolerate the “volatility and unknowingness”.

An official statement said: “The government is closely monitoring the developments in the Middle East.” It added: “We have raised industry concerns about red diesel prices, including price transparency, with the Competition and Markets Authority and we are committed to ensuring that this market functions fairly.” The statement continued: “We stand ready to act swiftly and appropriately to support our domestic farming industry and protect food security, and have already extended the 5p fuel duty cut from this month to September.”

The rising burden on farm balance sheets has wider implications for food supply and rural livelihoods. If fuel duty stays high, some farmers may scale back sowing or reduce livestock numbers, which would further squeeze margins and raise costs across the supply chain. Policy choices now could shape whether smaller farms survive or whether consolidation accelerates, pushing more decisions about price and production onto fewer hands.

For many on the land the debate is no longer abstract. When every tractor needs 250 to 300 litres a day and costs almost double what they did, the call to cut fuel duty becomes about keeping businesses afloat and preserving the food on supermarket shelves.