Andersons Agflation Update – October 2026

Agflation Climbs to 7.8% – Farm Costs Rising at Over Twice General Inflation as Output Prices Fall

The Andersons Centre estimates that agricultural input inflation (‘Agflation’) reached 7.8% in the year to September 2026, up from 7.2% in August and 1.7% in January. This is the highest rate since early 2023 and more than double headline consumer price inflation, which stood at 3.1% in August.

The rise is being driven by the most volatile items in the farm cost base. Fertiliser prices are estimated to be around 35% higher than a year ago, while energy and lubricants are up by over a quarter, reflecting the impact of conflict on global energy and fertiliser markets. Contractor charges (up 11%) and wages (up 5%) are adding further pressure, while feed prices have risen more modestly at around 3%.

The squeeze is being felt on both sides of the ledger. Agricultural output prices are estimated to be 1.3% lower than in September 2025, meaning the gap between what farmers pay and what they receive has widened to more than nine percentage points. Overall, farm input costs now sit around 40% above 2020 levels. With budgets for the 2027 season now being set, understanding and planning for these cost pressures has rarely been more important.

Figure 1: Andersons Annual ‘Agflation’, Agricultural Outputs & CPI Estimates – 2015 to 2026*

Sources: ONS, Defra and Andersons
Notes: Andersons’ Agflation estimates build upon on Defra price indices for agricultural inputs and weights each input cost (e.g., animal feed) by the overall spend by UK farmers. Andersons then provides a more up-to-date estimate of the price index and annual inflationary trends for each input cost category. * Represents the % change versus the same month a year earlier.

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With costs across the board well above where they stood five years ago, and little sign of a return to previous levels, UK agriculture is in its most consequential period in a generation. All the while, the phasing out of delinked payments, reshaped environmental schemes, climate change and disease pressures as well as a shifting trade landscape are changing where farm income will come from.

To support the industry through this period, The Andersons Centre has launched Andersons Pro, an annual subscription bringing together the firm’s independent research and analysis in a single package. Subscribers receive both editions of the ABC Book, the Nix Pocketbook, twelve monthly Professional Update Bulletins, plus a place at Andersons 2027 Spring Seminar and its autumn 2027 Webinar.

Bought individually, these items would cost over £700. Andersons Pro brings them together at a discounted price of £600 plus VAT per year, a 15% saving and equivalent to £50 per month when paid annually. Subscribers will also be eligible for discounted access to further Andersons publications, as well as the option to purchase additional Seminar and Webinar places at a reduced rate.

Michael Haverty, Partner at The Andersons Centre, said: “Inflation has permanently reset the cost base of many farm businesses, and output prices have not reliably kept pace. When margins are this tight, the gap between the best and the average business is determined as much by the quality of decisions as the quality of farming. Andersons Pro is designed to support those decisions, putting our best thinking in one place, at a lower cost, so subscribers can plan with confidence rather than react to events.”

Andersons Pro is aimed at farmers and estates, as well as agricultural professionals who advise and work alongside them, including land agents, solicitors, accountants, lenders and those working in government and policy.

How to subscribe
Sign-up must be completed online at www.theandersonscentre.co.uk/store/andersons-pro-subscription. Payment is made annually, and an invoice will be provided as part of the sign-up process.

Notes to editors
The Andersons Centre is a long-established independent agricultural business consultancy based in Melton Mowbray, Leicestershire, providing research, business consultancy and market analysis to farmers, agri-food businesses and government.