The price of red diesel has been falling in recent weeks, with prices being quoted between 82p/l and 88p/l in the last week.

This is a massive drop from prices only a couple of months ago when farmers were paying close to £1.30/l. However, volatility in the market is making it difficult to predict how long the lower prices will stay.

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Also tumbling in price, though, is grain, which has fallen since harvest when farmers were typically being paid £255/t for feed barley. At the moment, January wheat futures have dropped to around £237/t with barley usually trading at £20/t below.

Read more: We're being decimated by costs and little support

But at this time of year, the volume traded off farm is more modest as cereal growers with sheds full of grain can sit on stock until spring or summer next year. Further strong prices at harvest helped improve arable farmers' bank accounts, meaning there has been less need to sell for cashflow.