Support for Farmers: Fuel Costs

1. What steps her Department is taking to support farmers with fuel costs.

This Government are taking decisive action to support farmers with rising fuel costs. We have cut red diesel fuel duty to its lowest level in 20 years, reducing rates by a third, and we have asked the Competition and Markets Authority to ensure that there is no market abuse.

During the nearly three months it took the Government to decide to cut duty on red diesel, farmers in my constituency had already had to take steps to mitigate costs for fuel, energy and fertiliser. With changing weather patterns also threatening food security, will the Department look at other reliefs for our farmers, to ensure food security is not compromised while the war continues and its impacts ripple for years to come?

The National Farmers’ Union president, Tom Bradshaw, said:

“The government’s decision to scrap the planned rise in fuel duty is good news, and the cut to red diesel duty is a welcome, well-targeted measure.”

I think I heard the hon. Lady welcoming that measure. Of course, we are keeping all plans under review and all scenarios, given the conflict in the middle east. We are consulting on plans to change fertiliser rules, so that farmers can diversify their sources of fertiliser, and we are working with farmers to give them access to Government tools to boost the efficiency of their fertiliser use.

I call the Liberal Democrat spokesperson.

May I start by saying how deeply saddened I was by the news that three Royal Navy personnel based out of Royal Naval Air Station Yeovilton in my constituency tragically lost their lives on a training exercise in Devon the night before last? My thoughts are with their families, friends and colleagues at this incredibly difficult time.

Fuel is one of the biggest operating costs for farming businesses. Soaring red diesel and fertiliser costs, driven by Trump’s war in Iran, are squeezing already tight farming business margins. While the red diesel duty is welcome, it cannot paper over the wider crisis facing farm finances, with farm cash flows and profitability under real pressure. Farmers are now looking to the sustainable farming incentive 2026 as a lifeline. Can the Minister confirm how quickly applications will be processed and then the first payments made to farmers? Can she also give the 28,000 farmers with agreements that are expiring this year certainty that they can apply ahead of their current agreements—

Order. You cannot go on and on; we have only a very short time.

I thank the hon. Lady for welcoming the cut to red diesel fuel duty. I can reassure her that we have recently published draft guidance for SFI 2026 and will be opening the first window soon for small farms and those without an agreement. We are looking at what can be done—I think she was about to ask this—about farms with agreements that are expiring either later this year or early next year, to see whether we can ensure that they can apply before their agreements expire for the coming period.