The war in Iran is still one of the most important topics in the world. After the failure of peace talks, hostilities have recommenced on both sides. It means the disruption to shipping through the Strait of Hormuz continues. As a result, countries have fears about the supply of key products, particularly fertiliser.

With concerns about the supplies, in June the NFU revealed a new plan to help improve resilience against supply issues and price increases. The aim is to ensure that farmers will be able to access fertilisers at affordable rates so they can continue to produce essential food and drink.

Issues

Countries all around the world are vulnerable to supply shocks with fertilisers. A huge amount of product comes from the Middle East. It is also one of the major sources of ammonia. Therefore, the disruption is clear to see.

The UK is particularly vulnerable. We rely on imports of nitrogen fertiliser, only producing around 40% of what we use domestically. Even then, the products we do produce here rely on ammonia from overseas. The war in Iran is harming confidence and causing financial concerns for farmers.

One of the biggest issues is farming is an industry that relies on forward planning. Farmers need to look ahead and decide what they will be planting far in advance. However, it is very difficult to do that if they don’t know whether they’ll have the necessary supplies. It means there could be very tough decisions to make, including switching crops or attempting to plant and potentially having to reduce the use of fertilisers.

Fertiliser Resilience Plan

In their recent plan, the NFU is calling for action from the UK Government and farming industry. They hope this will provide more stability for farmers, allowing them to safeguard production in 2027 and beyond.

A key part of the plan is a call for financial assistance. A major fallout from the war in Iran is the massive rise in the price of fertilisers. They were up an astonishing 40% in April. This puts a lot of pressure on farmers. So, the NFU is asking the government to introduce a compensation scheme similar to the EU. It would allow farmers to claim support if ammonia nitrate prices exceed £500 per tonne.

Additionally, the NFU wants the government to postpone the UK Carbon Border Adjustment Mechanism (CBAM). It’s a new levy that aims to address carbon leakage, the movement of emissions to other countries. The plan is to introduce it in Jan 2027, but there are fears it could have a big impact on many industries. In terms of farming, the major concern is it will further increase the price of fertiliser.

Finally, the NFU is asking for more action from the Agriculture and Horticulture Development Board (AHDB). They want them to provide more key information about supply chains and nutrient management on farms.

Choose high quality products

Fertiliser is one of the most important products in the world. So, it makes sense farmers worry when there are issues with supplies or prices become unaffordable. The NFU is right to call for more support for farmers.

JS Hubbuck Ltd has been supplying fertiliser since the 1940s. We know how difficult it can be when supplies are disrupted. Our goal is to keep them as consistent as we can and get products to farmers as efficiently as possible. If you need some help, contact us.