Committee publication · Correspondence · 17 March 2026
Correspondence to the Secretary of State relating to the implications of the conflict in Iran on food security and rural communities, dated 17 March 2026
Summary
The Environment, Food and Rural Affairs Committee writes to the Secretary of State on 17 March 2026 regarding impacts of the Iran conflict on UK food security and rural communities. The letter raises concerns about rising fertiliser, fuel, and shipping costs affecting food supply chains, food price inflation harming low-income households, farmer viability amid production cost increases, and off-grid rural households facing doubled heating oil prices. The committee requests government assessment of risks, mitigation actions, and support measures.
Key findings
- One-third of global fertiliser supplies transit the Strait of Hormuz; conflict-driven price rises risk feeding through to food price inflation, particularly harming low-income households
- Farmers face unprecedented economic uncertainty without the Basic Payment Scheme as a safety net; rising production costs (heating, electricity, red diesel, fertiliser) may force production scaling back
- Off-grid rural households reliant on heating oil have experienced doubled refill costs since conflict start; government's announced £50 million support fund is insufficient for the scale of additional costs
- Reduced Red Sea shipping and Cape of Good Hope diversions placing pressure on transport efficiency and costs; elevated prices may persist beyond hostilities end
- Rising inflation may delay interest-rate reductions, keeping borrowing costs elevated for businesses including farmers and food processors already operating on tight margins
Tone
CriticalTopics
Key actors
Alistair Carmichael MP, Emma Reynolds MP, Environment, Food and Rural Affairs Committee, Department for Environment, Food and Rural Affairs (Defra), National Farmers' Union (NFU)
Notable line
“… as it is the first time in recent years that farmers in England have faced economic uncertainty of this scale without the Basic Payment Scheme as a safety net.”
Key Quotes
“With around one-third of global fertiliser supplies transiting the Strait of Hormuz, fertiliser prices are also rising.”
“There is particular concern that any price rises triggered by the conflict may not be temporary, and that elevated prices could persist even after hostilities end.”
“… as it is the first time in recent years that farmers in England have faced economic uncertainty of this scale without the Basic Payment Scheme as a safety net.”
“Reports suggest that farmers may be forced to scale back production as the cost of heating, electricity, red diesel and fertiliser rises.”
“We welcome the Government's recent announcement of £50 million to support low‑income families who heat their homes with oil; however, we remain concerned that this funding is unlikely to be sufficient to address the scale of the additional costs faced by off‑grid rural households as a result of this issue.”
Source · parliament.uk record ↗