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<p>The turbulence of the market in light of the invasion of Ukraine, and the global
spike in oil and gas prices, has brought into focus again the importance of a resilient
global supply chain and the importance to our national resilience of having strong
domestic food production.</p><p> </p><p>Farmers are facing increased input costs including
for fertiliser, feed and fuel. We continue to keep the market situation under review
through the UK Agriculture Market Monitoring Group, which monitors UK agricultural
markets including price, supply, inputs, trade and recent developments. We have also
increased our engagement with industry to supplement our analysis with real time intelligence.
We have recognised that increasing input costs, particularly fertiliser, feed, fuel
and energy, are creating short term pressures on cash flow for farmers.</p><p> </p><p>The
Government has taken a number of actions to support farmers. These include changes
to statutory guidance to the Environment Agency on how they should implement the "Farming
Rules for Water" to provide clarity to farmers on how they can use slurry and
other manures during autumn and winter to meet agronomic needs; increased grants funding
to help farmers and growers boost research and development; and a delay to changes
to the use of urea by at least a year. When the urea restrictions are introduced,
they will be related to the use of ammonia inhibitors rather than a complete ban.
The Government has also announced that Direct Payments in England will be paid in
two instalments each year for the remainder of the agricultural transition period,
to help farmers with their cashflow.</p><p> </p>
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