In a letter to the Chancellor ahead of the Spring Budget, the NFU has called for greater support for domestic food production as energy, fuel and other production costs continue to soar.
The letter, sent by NFU President Minette Batters, reinforced the need to extend the Energy and Trade Intensive Industries (ETII) scheme to include energy intensive sectors such as horticultural and poultry production.
It also called for an extension to the current reduced rates of fuel duty, including for red diesel, and for improved support for capital investment.
Specifically, the union called for the Treasury to extend the Annual Investment Allowance to structures and buildings or increase the general rate for structures and buildings to 10%, to encourage small business investment in UK agriculture.
Commenting ahead of the Budget, Mrs Batters said: "If the government is to halt food price inflation and help prevent further food shortages, greater support and confidence is needed for the thousands of farm businesses which are trying, but struggling, to feed our nation.
“It seems irresponsible that the ETII scheme completely overlooks primary food production, not to mention it being wholly at odds with the government’s own ambition to produce more home-grown fruit and vegetables.
"An urgent review into the ETII is needed to ensure that essential and vulnerable food producing sectors, such as protected horticulture and poultry production, do not face a cliff edge when the Energy Bill Relief Scheme ends later this month."
The NFU has also asked for a delay to the implementation of Basis Period Reform for business with accounting periods that don’t align to the tax year.
The union said the government should amend the date from which interest is charged on additional tax resulting from the reform from when that payment is due.
“Improving support for capital investment and extending the reduced fuel duty rates would also give farmers greater confidence, especially as the cost of red diesel remains almost 40% higher than it was last April.”
The Spring Budget will be announced on Wednesday 15 March.
