The Agricultural Industries Confederation (AIC) is calling on Defra for action on UK fertiliser resilience in the wake of global market disruptions caused by the US:Iran conflict. It has set out four key priorities for action.
The Andersons Centre estimates that agricultural input inflation rose to an annualised 7.6% in March 2026 since hostilities began, ahead of the Consumer Price Index (CPI) at 3.0% and CPI Food at 3.2%. This is the fastest rise since the start of the Russia:Ukraine conflict in 2022.
Andersons says the agflation is especially evident in fertiliser costs. Of the global urea supply, 30% is shipped through the Strait of Hormuz, while ammonium nitrate manufacture is dependent on gas feedstock where costs are also rising sharply. The consultancy estimates that UK farmgate nitrogen fertiliser prices now average £500 per tonne, where supplies are available. While it notes most UK arable fertiliser has already been purchased for the 2026 growing season, it warns of immediate cost pressure for dairy grazing and conservation systems with an ongoing fertiliser demand through spring and summer.
The AIC has written to the minister of state for food security and rural affairs Dame Angela Eagle outlining where targeted government action is needed to support fertiliser supply resilience, market confidence and informed decision making across the sector.
The Confederation has raised concerns over the growing pressure on farm cashflows – and access to credit – which it says are already influencing purchasing decisions for the upcoming season. The first priority is for government to explore options to support access to credit lines for fertiliser purchases, in order to reduce disruption and strengthen market confidence – as has been seen in other European countries.
Secondly, the AIC has asked Defra to consider the value of a national fertiliser recording system, like those operating in the Republic of Ireland and Northern Ireland. It says such a system could improve transparency around the product volumes on farm and trade carry-over stocks – supporting better national oversight on product availability.
The third priority is for urgent clarity over how the UK Carbon Border Adjustment Mechanism (UK CBAM) will apply to fertiliser in the UK, including default carbon footprints and free allowance starting points. The AIC emphasises that waiting until Q4 2026 for clarification will not work, since wholesale fertiliser is ordered and imported in advance. Failure to provide timely guidance would risk exacerbating the whole food supply chain challenges.
Finally, the AIC seeks greater clarity on the UK position regarding fertiliser produced in Russian-owned facilities operating within Europe. It notes that uncertainty around sanctions interpretation and banking restrictions is hindering lawful trade and creating market distortion compared with other European markets.
“While many UK farms may have secured their fertiliser requirements for this year, we cannot overlook the potential impact that ongoing global disruption could have on supply chains in 2026 and 2027,” warns AIC head of fertiliser sector Jo Gilbertson. “Although the government has limited influence over internationally traded fertilisers imported into the UK, it does have control over domestic policy, which plays an important role in maintaining industry confidence and supporting UK food security.
“The government’s proposal for a new UK Fertiliser Regulation is something AIC has long called for and very much welcomes,” he continues. “However, it is also important that all available options to support UK agriculture are considered, which is why AIC has written to ministers setting out four specific asks.”