Farming unions call for extension of energy support scheme

Four UK farming unions have joined forces to call on the government to extend energy cost relief to the poultry and horticulture sectors.

From April, the government’s Energy Bill Relief Scheme (EBRS) will be scaled down and businesses will face higher costs.

However, support will continue for more than 100 energy dependent sectors, including food processing and manufacturing, under the Energy and Trade Intensive Industry (ETII) scheme. 

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While botanical gardens and meat processing firms are eligible for ETII support, energy dependent farming and horticulture businesses have been excluded.

The NFU, NFU Cymru, NFU Scotland and the Ulster Farmers’ Union (UFU) said the two sectors would not be able to meet energy price hikes.

In a joint letter to energy security minister Grant Shapps, the unions call for the scope of ETII to be widened.

The letter warns that unless the list is extended, domestic food production could decline, posing a longer-term risk to inflation.

There could also be a negative effect on the thousands of supply chain businesses sustained by the farming sector, the letter points out.

UFU president David Brown said the government needed to understand that higher energy costs would be a major challenge for farmers when the EBRS changed.

The situation would be acute for the poultry and horticulture sectors, which would struggle to absorb the huge hikes in energy prices, threatening food security and jobs, he added.