UK grain farmers face lower wheat margins and record barley planting decline

Analysis by the UK Agriculture and Horticulture Development Board shows that for the 2027 harvest winter feed wheat and winter milling wheat remain the most profitable arable crops, with gross margins of £7,698 per hectare and £7,487 per hectare respectively. However, margins have fallen 17% since the 2025 analysis, mainly because fertilizer prices have surged – imported ammonium nitrate is up 32%, granular urea 54% and liquid urea 48% – raising overall production costs.

At the same time, barley acreage in the United Kingdom has dropped to its lowest level in 16 years. A decline in alcohol consumption, tighter household budgets and health concerns have led breweries and distilleries such as Diageo to reduce malt barley purchases, prompting farmers to plant less barley and shift to higher‑yielding oilseed crops. The reduced planting area raises concerns about the future supply of premium malt barley for the brewing and spirits sectors.