Rural Management
Fertiliser Price Rise Impacts Grass Park Lets
Insights 29 March 2022
Rose Nash The striking increase in the cost of fertiliser has caused concern for many farmers across the country and continues to be a major worry as farm businesses seek to plan for the next 12 months .
The impact of this price hike has also affected seasonal grazing arrangements, as highlighted at the recent grass park lets in Castle Douglas.
In 2020, the average price of land let at the Castle Doulas grass park lets was £97.85/acre for land where the right to claim Basic Payment is unavailable and with 1 cwts fertiliser applied by the landlord. For this same land in 2022, the average price was £159.48/acre - a 63 per cent increase, reflecting the additional cost of fertiliser.
From speaking to colleagues, these levels are reflected across the rest of the country, demonstrating the impact of global supply chain issues on day to day farming.
Demand for land in Scotland is as strong as ever, notably from farmers looking to achieve economies of scale by acquiring additional farmland.
It will be interesting to watch developing trends in the market over the next few years as key agricultural policies change and farming overheads fluctuate.
