Protecting Fuel, Fertiliser and Vehicles from the Global Threat

As we move through May, the British countryside is a hive of activity. This is a time of first-cut silage, precision spraying and the final push of spring drilling. However, the backdrop of this season is far from traditional. While the rhythm of the soil remains constant, the economic landscape has been upended by the sharp military escalations in the Middle East that began in March.

For all farmers, the recent news of disrupted shipping routes in the Strait of Hormuz is posing a direct threat to the farm's viability. It has made the supplies sitting in your yard, specifically red diesel and nitrogen fertiliser, much more valuable and harder to replace. Because prices for oil and gas have spiked, what you bought in January is worth a lot more now.

The Global Domino Effect

The events of early 2026 have proven just how fragile the agricultural supply chain remains. As mentioned in the latest EIA Short-Term Energy Outlook, market volatility reached a breaking point in March, with Brent Crude oil prices spiking to a high of nearly $120 per barrel.

While the market saw a slight consolidation in April, prices have remained stubbornly high, averaging around $110 per barrel as geopolitical tensions persist. With current predictions from Goldman Sachs suggesting it will continue to average $115 per barrel over the coming months, the cost of production has become a moving target.

Nitrogen fertiliser production is almost entirely dependent on natural gas. When gas markets panic, fertiliser plants, particularly those in Europe, often slow production to protect their margins. As reported by the AHDB in their March 2026 market update, the fear of a 2022-style price surge has returned. For many, the bags of urea or ammonium nitrate sitting in your shed right now are worth significantly more than the price you paid for them. You can follow the AHDB Interactive Price Map for the latest on fertiliser prices.

This creates a critical insurance risk known as underinsurance. If you set your "Sum Insured" for farm stock in January 2026, it was based on pre-escalation prices. If a shed fire or a major theft occurs today and you try to replace that fertiliser at May’s prices, your payout will fall short.

Insurance Tip: This is why we encourage a Farm Property Portfolio Review every quarter during periods of high volatility.

The Rise of the Siphoning Syndicate

As prices have climbed, the nature of rural crime has shifted from opportunistic to industrial. In 2026, we are no longer dealing with local thieves looking for a quick score; organised criminal groups are carrying out large fuel thefts on farms, using military-grade technology to exploit farm vulnerabilities. Check the Police Rural Crime Hub for the latest theft-prevention tech.

Reports from various police forces indicate that these gangs are now using thermal-imaging drones to scout farmyards at night. From several hundred feet in the air, a drone can identify the heat signature of a full fuel tank or the "fill line" on a plastic bunded tank, even through a shed wall. They know that in May, farmers are working 15-hour days and are often too exhausted to maintain the same level of vigilance at 2:00 AM that they would during the off-season.

For the farmer, fuel theft on farms and the loss of the fuel, while significant, is often the least of their worries. The destruction of a £5,000 bunded tank and the resulting business interruption can be far more costly. If your tractors are empty on a Monday morning and your local supplier is struggling with war-related delivery delays, you miss your planting window. Yield is lost and that loss is permanent.

This is where specialist farm insurance and theft cover become vital, as they must account not just for the stolen asset, but for the damage done to your infrastructure. You can also read the EA guide on silage and fuel oil storage (SSAFO) to ensure your farm is compliant.

If you are processing your own produce on-site, a fuel theft doesn't just stop a tractor; it stops a production line. You may not need a separate policy for this; if it is farm-related produce, it can form part of your farm policy. We focus on ensuring your comprehensive farm policy covers every area of your business, utilising the specialisms within Farm & General to get the right cover tailored to your specific operations.

Farm Security and Insurance Audit 

Securing Your Harvest

The global landscape this year has turned the traditional farmyard into a high-stakes warehouse. When fertiliser prices are dictated by overseas conflict and fuel is scouted by drones, your farm insurance can no longer be a set-and-forget document.At Farm and General, we insure your ability to keep moving. Whether it is ensuring your fertiliser stock is valued at today’s replacement costs or protecting your fleet's precision technology, our focus is on eliminating gaps in your cover to protect your business, so a loss never stops you from farming.The Next Steps for Your Farm:

• Review your sums insured: Don't let the March price spikes leave you underinsured.

• Update your security: Move from plastic to steel and consider telemetry for your most valuable assets.

• Check your policy wording: Ensure your GPS tech and fuel are covered for their true value, including the damage caused by the theft itself.

Your farm is constantly evolving and your insurance should do the same. If you are concerned about your sum Insured levels, your vehicle security, or your business interruption indemnity periods, our specialist team is ready to talk.