On Monday, 9 March 2026, fertiliser supply and food security were raised in the House of Lords during a parliamentary debate on the Carbon Border Adjustment Mechanism (CBAM).
Lord Fuller, Chairman of Nitrasol and a long-standing figure in the UK fertiliser industry, questioned whether the policy should be reviewed in light of the current geopolitical situation affecting global fertiliser markets.
The exchange highlights a growing concern across UK agriculture: nutrient supply security is becoming as important as nutrient efficiency.
Britain’s Dependence on Imported Fertiliser
During the debate, Lord Fuller warned that the UK now relies almost entirely on imported ammonia and fertilisers following the loss of domestic production capacity. That dependence matters. We are now reliant on the kindness of strangers for nitrogen fertiliser supplies.
Ammonia is the foundation of nitrogen fertiliser. When global supply is disrupted, the impact reaches farms quickly.
Fuller highlighted that current tensions affecting energy markets in the Middle East could leave around one third of global fertiliser supply stranded on the other side of the Straits of Hormuz, directly affecting supply availability for importing nations such as the UK.
He warned that fertiliser prices could rise by around 25% in the near term if supply pressures intensify, which will drive up input costs for farmers and create a risk of wider food price inflation, driving price rises for bread, beer, biscuits and butter, products which are consumed by every family, every day
The CBAM Question
The Carbon Border Adjustment Mechanism (CBAM), scheduled to apply to fertilisers from January 2027, is designed to ensure imported products face equivalent carbon costs to those produced within regulated markets by supporting domestic fertiliser producers against cheaper overseas competition from areas with lower production standards to reduce ‘carbon leakage’.
Now that the primary production of fertilisers in the UK has ceased, the ‘carbon leakage’ has disappeared. Lord Fuller argued that introducing CBAM during a period of global fertiliser disruption could unintentionally compound price pressure.
He warned that the policy could add a further 25% increase in fertiliser costs, raising serious concerns for agricultural production and food affordability if supply shocks and regulatory costs combine.
For farmers, the issue is straightforward: fertiliser availability and price stability are fundamental to food production.
Government Response
Responding to the debate, the Government recognised the importance of transitioning towards lower-carbon fertiliser production.
The Minister suggested that long-term resilience may come from developing domestic low-carbon ammonia production.
However, the Government did not signal any intention to review CBAM policy in response to the current market situation.
As a result, the concerns raised about fertiliser supply resilience and food security remain unresolved.
Why This Matters for Farmers Now
The debate comes at a critical moment in the UK farming calendar.
Spring drilling is underway across much of the country, with nitrogen and sulphur fertiliser applications essential for cereal and oilseed crop establishment.
At this stage of the season, certainty around fertiliser availability and pricing is vital for farm planning.
Growers are currently balancing several pressures:
- Rising input costs
- Nitrogen regulation changes
- Supply chain volatility
- Environmental compliance requirements
In practical terms, fertiliser strategy has become both an agronomic decision and a business risk decision.
The Wider Context
The House of Lords exchange reflects a broader shift in how the agricultural sector views fertiliser supply.
Historically, the focus was yield.
Today the discussion also includes:
- supply resilience
- carbon intensity
- logistics efficiency
- regulatory compliance
These factors will shape the fertiliser market for the next decade.
For UK farming businesses, the priority remains clear: secure nutrient supply, maintain productivity, and manage regulatory change without compromising food production.
🔗 Watch the full debate here
