Rising fuel and fertiliser bills add to pressure as milk prices remain below production costs

WELSH dairy farmers are being warned that rising fuel and fertiliser costs are threatening the viability of family farms already under pressure from weak milk prices.

The Farmers’ Union of Wales says the sector is being squeezed by a combination of global instability, higher input prices and returns that are failing to keep pace with the cost of production.

The union said recent tensions in the Gulf, together with fears over disruption to energy supplies through the Strait of Hormuz, had contributed to sharp rises in costs facing farmers.

Fertiliser prices are reported to have increased by up to 53% compared with levels before the latest conflict, while red diesel costs have effectively doubled in recent months.

The pressure comes at a difficult time for dairy producers, many of whom the FUW says are still receiving milk prices below the cost of production.

The situation could worsen as the spring flush brings higher milk volumes, which can place further downward pressure on farmgate prices and add to cashflow difficulties.

The Central Association of Agricultural Valuers has also warned that tightening oil markets could reach a tipping point in early June, with higher energy costs already feeding through into agriculture.

In response, the FUW has met major lenders, including HSBC and NatWest, to discuss support for farming businesses. The talks focused on flexibility over lending, overdrafts and cashflow arrangements.

The union is urging farmers who are worried about their finances to speak to banks, accountants and advisers at the earliest opportunity.

FUW President Ian Rickman said Welsh farmers were facing a “perfect storm” of international instability and soaring input costs.

He said: “The sharp increases we are seeing in fertiliser and fuel costs are placing enormous pressure on farm businesses at a time when many dairy farmers are already producing milk below the cost of production.

“These challenges are completely outside farmers’ control, yet they are having a direct and immediate impact on the viability of family farms and rural communities across Wales.

“It is therefore vital that farmers speak openly and early with their banks and professional advisers if they are facing difficulties.

“Our recent discussions with major lenders have been constructive. It is encouraging that banks recognise the exceptional circumstances currently affecting the agricultural sector. Flexibility and understanding will be crucial in helping viable farm businesses navigate this period of uncertainty.”

Welsh Conservatives accuse Plaid Cymru of failing farmers as ministers call for patience over changes to agricultural support

CONCERNS over the pace of farming reforms in Wales have intensified after the Welsh Conservatives accused the Welsh Government of failing to act quickly enough on promised changes to agricultural subsidy schemes.

The criticism comes after Welsh Government Rural Resilience and Sustainability Minister, Llyr Gruffydd, urged farmers to be patient as major changes to support payments continue to be developed.

Speaking to ITV Wales, Mr Gruffydd acknowledged that “change is difficult” as the government seeks to reshape agricultural support across rural Wales. The comments come at a time of growing unease among parts of the farming community over the future of post-Brexit subsidy arrangements and concerns about financial pressures facing farms.

The reforms centre on replacing previous support systems with a new approach intended to balance food production, environmental sustainability and rural resilience. However, some farmers and unions have warned that uncertainty over payments and policy changes risks damaging confidence in the sector.

Reacting to the minister’s remarks, Welsh Conservative Shadow Farming Minister, Andrew RT Davies, said Plaid Cymru was not moving quickly enough to deliver on commitments made to Welsh farmers.

Mr Davies said: “Change is not difficult – contrary to Plaid Cymru separatists’ claims.

“If the will is there, there’s no reason reforms can’t be implemented immediately.

“Plaid Cymru separatists must fulfil their promises to Welsh farmers now.”

The comments reflect wider political tensions over the direction of farming policy in Wales, with opposition parties arguing that delays and uncertainty are creating anxiety for agricultural businesses already facing rising costs and economic pressures.

Farming remains a major part of the Welsh economy, particularly in rural counties such as Pembrokeshire, Carmarthenshire and Ceredigion, where many communities rely heavily on agriculture and associated industries.

The Welsh Government has previously said changes to support schemes are aimed at creating a more sustainable long-term future for farming, though ministers have acknowledged the transition period will take time and may prove challenging for some in the industry.

The debate over subsidy reform is likely to remain a key political battleground as the government finalises details of its future support model and seeks to reassure farmers concerned about their livelihoods.

Locally grown early potatoes arrive in stores as farmers begin lifting the first Pembrokeshire crop of 2026

PEMBROKESHIRE’S famous new potato season has officially begun, with the first crop of locally grown potatoes being harvested and delivered to shops across the county.

Farmers at Norton Farm began lifting the first Pembrokeshire new potatoes of the year this week, with the freshly harvested crop expected to reach local stores by Friday morning.

The arrival of Pembrokeshire new potatoes marks the unofficial start of the county’s summer growing season and is eagerly anticipated by shoppers keen to enjoy one of Wales’ best-loved seasonal foods.

Photographs shared by the farm show workers hand-picking potatoes from freshly turned soil as machinery lifted the crop from fields overlooking the Pembrokeshire countryside.

The potatoes, prized for their distinctive flavour and soft skins, benefit from the county’s mild climate and coastal growing conditions.

Brian Llewelyn a’i Ferched shared the news on social media, telling customers: “Arriving with us this afternoon!!!!” as excitement builds around the first deliveries.

Locally grown Pembrokeshire new potatoes are expected to be available in selected shops from around 10:00am on Friday.

For many in Pembrokeshire, the arrival of the first new potatoes is a sign that summer is just around the corner — and that it is finally time to get the butter on.

Photo caption:

First crop: Workers begin lifting Pembrokeshire new potatoes at Norton Farm as the 2026 harvest season gets underway (Pics: Norton Farm).