NFU Scotland welcomes the UK Government’s announcement of additional support for red diesel users through a temporary reduction in duty rates from 10.18p to 6.48p per litre. The lowest rate in over 20 years.
This is a positive response to the concerns raised directly by NFU Scotland with the Prime Minister on 11 March regarding the growing impact of global instability on agricultural input costs.
Farmers and crofters across Scotland continue to face significant pressure from rising fuel, fertiliser and energy costs, all of which directly affect the cost of producing food. This lower rate will take effect from 15 June and remain in place until the end of the year, supporting the agricultural sector in the fuel intensive harvest period through the end of the year.
NFU Scotland President Andrew Connon said:
“The Government’s decision to reduce red diesel duty is a welcome recognition of the pressures currently facing agriculture and the wider rural economy. Despite this welcome action coming after the diesel-intensive spring planting season, this is a practical step that will help farmers and crofters manage escalating operating costs during the critical harvest period.
“NFU Scotland raised this issue directly with the Prime Minister earlier this year in a letter as part of wider concerns around global instability, rising input costs and the risks these pose to domestic food production and food security. We are pleased that Government has listened and acted on one of our key asks.
“While this measure will provide valuable short-term support, further action is still needed to address ongoing volatility in fertiliser and energy markets to ensure Scottish agriculture can continue producing high-quality food sustainably and competitively.”
NFU Scotland will continue engaging with the UK Government and industry partners on the wider package of measures needed to strengthen resilience within Scottish agriculture and protect domestic food production.
Other asks in the letter sent on the 11 March included:
- Measures to support fertiliser availability and affordability
- A review of the proposed Carbon Border Adjustment Mechanism (CBAM) in relation to fertiliser costs
- Short-term financial resilience support to help farm businesses manage input cost volatility
- Expanded powers and communication channels for the Agricultural Supply Chain Adjudicator Greater monitoring and transparency of agricultural input markets
The details of the letter can be found
here.