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.