Rural Aid said that global supply shortages were impacting farmers at a crucial time, as harvest activity ramped up and preparations began for winter sowing.
Day-to-day farm operations risk becoming unviable, as the conflict in the Middle East moves into its fifth week, choking one of the world’s largest fertiliser and fuel exporting regions.
Diesel prices have surged sharply in recent weeks, to consistently sit above $3 a litre in much of northern Victoria.
High diesel prices significantly increase the cost of running farm machinery and transporting grain and livestock.
Fuel availability is also emerging as a concern in parts of regional Australia, adding to uncertainty during peak seasonal workloads.
Rural Aid chief executive John Warlters said rising diesel prices were being felt across every stage of the agricultural supply chain.
“When the cost of diesel rises, it impacts everything from operating machinery on farm through to getting produce to market,” Mr Warlters said.
“Harvesters can burn hundreds of litres of diesel each day.
“Sustained price increases at this level are simply not sustainable for farming businesses.”
Fertiliser prices are also climbing sharply ahead of the winter sowing season, with urea prices jumping from about $870 per tonne in late February to more than $1200 per tonne in recent weeks.
Rural Aid said some regions had reported prices as high as $1600 per tonne.
Australia relies on imported fertiliser for more than 90 per cent of its supply, with much of it shipped through major global trade routes now affected by disruption, adding further volatility to prices.
Mr Warlters said uncertainty around fertiliser and fuel supplies was creating significant stress for farming families.
“When so much is outside your control, it becomes harder to plan ahead and take confidence in the season,” he said.
Farmers seeking support can contact Rural Aid on 1300 327 624 or visit ruralaid.org.au.
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