Agriculture Update - May 2026

Farmers are being squeezed by rising costs, unstable prices and policy decisions that do not reflect the realities of farming life. Sadly, those pressures have not eased, which is why I have continued to push the Government hard in Parliament, in meetings, and publicly.

I have continued to raise serious concerns about Agricultural Property Relief (APR) and Business Property Relief (BPR), and the impact that ill‑judged tax changes risk having on family farms and succession planning. I contributed to parliamentary debates on these issues, including a Commons debate on agricultural property relief and business property relief earlier this year, where I stressed that farms are often asset‑rich but cash‑poor, and that changes made without proper understanding could force people out of farming altogether. You can read those contributions here and here. Although I welcome the changes to the threshold made by the Government, I still strongly believe that the policy was misguided from the start and that the tax ought to be scrapped in full. 

As many of you raised with me, pressures on farmgate prices – particularly for dairy farmers – remain acute. I have questioned the Government directly on the combined impact of falling milk prices and rising costs, highlighting that many contracts operate as a one‑way street, with farmers having little or no room to negotiate. My Written Parliamentary Question on this issue can be found here. I have also written with some of my Liberal Democrat colleagues in Parliament to the Environment Food and Rural Affairs Select Committee to ask them to investigate milk prices and sustainability of the industry. 

Alongside price pressures, I am acutely aware that the cost of running a farm continues to rise. Very shortly after the Middle East conflict began this spring I tabled a written question to the Government on the impact on fertiliser costs. I am honestly shocked that it has taken them seven weeks to provide a reply. I have also supported the following Parliamentary Motion tabled by the Liberal Democrat Spokesperson for rural affairs:  

That this House notes with concern the sharp increase in the price of red diesel, which as of April 2026 has risen to 123.7p per litre, representing a 79 per cent increase from its 2025 average price of 69p per litre; acknowledges that this increase has coincided with a rise in the cost of imported fertiliser from £404/tonne in February to £530/tonne in April, having soared by £150/tonne from April 2025; recognises that red diesel is the primary fuel used by agricultural machinery and is essential to domestic food production; further acknowledges that analysis by the Energy and Climate Intelligence Unit has found that UK farmers face having to spend £337 million more on red diesel this year as a consequence of Trump’s illegal war with Iran; understands the impact the increased overhead costs will have on farming operations throughout the farming season, making it a key factor influencing farm profitability; further notes that the US's blockade of Iranian ports in the Strait of Hormuz and the risk of retaliatory action against ports in the Gulf states are likely to force oil and gas prices to rise further; and calls on the Government to take urgent action to mitigate the impact of rising fuel and fertiliser costs on the agricultural sector, including by reducing fuel duty by 10 per cent in order to help lower the cost of red diesel to support farmers during this period of increased financial pressure.

I have also written publicly about these pressures, including in my blog on rising fuel and energy costs, which sets out how these challenges affect farmers and rural businesses. That post is available on my website.

While continuing to challenge the immediate pressures farmers face, I have also been engaging on the longer‑term future of agriculture. In March, I met with young farmers in Parliament to discuss regenerative agriculture, including both the environmental opportunities and the significant financial and practical barriers to adoption. These discussions reinforced what many of you have told me: that long‑term certainty and realistic support are essential if new approaches are to work on the ground. I raised some of these concerns in a debate at the end of April, calling for a next generation schemes to ensure that farming is a sustainable career for those young people who want it.

Farmers put food on our tables and sustain our rural communities. Over the past four months, I have continued to take your concerns directly into Parliament and will keep doing so. Please do continue to get in touch with your experiences and views. Hearing directly from you strengthens the case for fair prices, workable tax policy and meaningful support for farming.