Seeing Red: how diesel and other input pricing is affecting farms and rural businesses
The Spring Statement from Rishi Sunak on 23rd March saw a welcome, albeit small, decrease in the red diesel levy. This follows the 5p removal from white diesel the same day.
Other welcome news from the day was the increase in the National Insurance Contribution (NIC) threshold by £3,000. For many individuals this will help ameliorate the increase of the 1.25% health & social care levy and be a direct benefit to them.
Whilst the above measures will help alleviate some of the domestic cost of living crisis, it doesn’t help prevent the wider price increases that farmers continue to see in their businesses. As every farmer and business owner is aware, fuel, feed, fertiliser, raw materials and other stock items are seeing substantial increases due to global and domestic events.
Oliver Burns, Sales & Marketing manager of County Insurance Services, said: “We routinely see an inflationary increase at each renewal with insurer to allow for rising prices. It’s so important, though, that farmers do regularly review what they have got on cover. Ongoing current events really can change the dynamic of what farmers and rural businesses need to insure and for how much they need to insure all their property for.”
With the rising cost of building materials, labour and professional fees, many farm assets are seeing an immense increase in their cost of build or cost of replacement.
He added: “In order to prevent underinsurance and to avoid going into the red, we really recommend an annual review of your sums insured alongside your insurance expert and a review of the covers provided by your insurer or broker. This has been a big area of focus for our team of on farm advisors over recent months”.
To find out more contact the team at County on 01865 844985