The price of electricity on farms is continuing to rocket, with a 15p/kw hour jump since The Scottish Farmer went to press last week.

Farmers are now regularly being offered prices over 70p/kw hour with only a few pence off for multi-year commitments. NFU Scotland has declared 'immediate action on electricity prices is needed for all households and businesses’.

The union has been talking to one Scottish vegetable grower whose current electricity tariff of around 12p per unit runs out at the end of September. He was quoted 71p per unit for a new contract, which means that his electricity bill for the year, primarily to cool and store his potatoes and vegetables, would jump from around £140,000 to over £800,000. This level of rise, without a corresponding jump in market returns, means the grower may just stop growing vegetables.

Writing on his NFUS blog, president Martin Kennedy said: “When it comes to Government appreciation of the impact that the cost of energy is having on business viability, the ‘penny hasn’t dropped.’

"Some politicians, civil servants and representatives of the retailers have suggested that the solution may be simply importing our way out of the crisis. But will the food be there to import. Other countries are facing the same production pressures as us. And the drought in Europe is devastating crops. Given food security is now a global issue it’s incumbent upon us to maintain our food production.

Read more: Farmers face a four fold rise in electricity prices

“That will not only feed ourselves but maintain our wider economy which is so reliant on agriculture.”

The union is now asking the UK Government to recognise the need to address food security concerns by:

• Immediately ensuring affordable electricity is available to all households and businesses;

• Investigate the pricing structures within the energy market to show transparency and illustrate why some are making unprecedented levels of profit;

• Maximise production of home-produced electricity.

Mr Kennedy continued: “Inflation is currently running at 10.1%, however ‘aginflation’ – the rise in costs that farmers face for their key inputs – is well over 30% with some products, for example fertiliser, nearer 300%. We are encouraging MPs to visit farms to see first-hand the detrimental impact that huge electricity bills will have on future food production decisions.

"It is up to the Government to act on electricity prices now in the best interest of all our businesses – and ultimately all our consumers. Acting now on electricity prices for food and farm businesses will help with food price inflation and keep home-produced food on everyone’s plates.”