‘Stressed and struggling’ farmers call for fuel tax cuts
Farmers who claim fuel bills have doubled since the start of the Middle East conflict are calling on the government to lower duty to ease the burden.
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.
The government said it was monitoring the war situation and it stood ready to act “swiftly and appropriately” to support farming and protect food security. It also said it had extended a 5p fuel duty cut.
Farmer Jones says farms like his rely heavily on fuel for tasks including looking after crops and animals [BBC]
Plans for a conditional ceasefire between the US and Iran meant oil prices continued to fall on Wednesday.
However, brent crude, the standard oil measure, is still 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 said 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.
“Farmers who potentially have a cashflow problem are going to struggle to stomach a higher fuel bill.”
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.
Farmer Neil Cole says younger generations may not want to enter the profession [BBC]
Adding his voice to calls for lower fuel duty, Neil Cole, who owns a sheep farm in Princetown, on Dartmoor in Devon, said “doubling” fuel and fertiliser prices were the latest problem in a series of issues facing the industry.
He said: “I don’t know how many other industries could stand the volatility we are getting.
“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”.
A government spokesperson said: “The government is closely monitoring the developments in the Middle East.
“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.
“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.”
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