Transport, Fertiliser and Fuel Costs Continue to Climb as Pressure Builds on Farmers

Rural Aid is warning that pressures on Australian farmers are intensifying, with rising fuel, fertiliser and freight costs continuing to escalate as global disruptions persist.
Rising input costs are increasingly affecting day-to-day farm operations. As harvest activity ramps up across multiple regions and preparations begin for upcoming sowing, higher diesel prices and supply constraints are increasing the cost of running machinery and bringing crops in. Diesel prices have risen sharply in recent days, increasing by 30 to 40 cents per litre in the past week alone. In some regional areas, prices have surged past $3 per litre, with further increases expected as global supply remains tight.
In addition to rising prices, fuel availability remains a major concern, with supply constraints emerging in some regional areas and adding further pressure during critical seasonal periods.
At the same time, higher fuel prices are driving up transport and freight costs, making it more expensive to move agricultural goods from farm to processor, port and market.
“When the cost of diesel rises, it impacts every stage of the supply chain – from operating machinery on farm through to transporting goods to market,” said John Warlters, Chief Executive Officer of Rural Aid.
“We’re hearing from farmers who are increasingly worried about how they’ll manage these rising fuel costs,” Mr Warlters said. “Harvesters can burn through hundreds of litres of diesel each day, and sustained price increases at this level are simply not sustainable for farming businesses.”
Fertiliser costs are also climbing ahead of the winter sowing season, with urea – a key nitrogen fertiliser – experiencing sharp price increases. Prices have surged from around $870 per tonne in late February to more than $1,200 per tonne in recent weeks, with some areas already reporting levels as high as $1,600 per tonne.
Australia relies heavily on imported fertiliser, particularly urea, with more than 90 per cent sourced from overseas, much of it moving through the Strait of Hormuz. Disruptions to this critical shipping route are adding further volatility to already elevated prices.
Without adequate fertiliser, crop yields can decline significantly, reducing farm productivity and the volume of food and fibre produced.
“Farmers are worried about securing fertiliser in time for sowing, and with fuel shortages already emerging, there’s growing concern about keeping essential farm operations running,” Mr Warlters said.
“Australia relies on stable global supply chains, and disruptions to major shipping routes create real challenges for farmers.”
These combined pressures are increasing the cost of producing and delivering Australian agricultural products at every stage of the supply chain, with impacts likely to be felt across both farming businesses and Australian households.
“All of this uncertainty is taking a toll on farming families,” Mr Warlters said. “When costs are rising this quickly and so much is outside your control, it creates real stress and makes it harder to plan ahead.”
Farmers in need of assistance are encouraged to contact Rural Aid by calling 1300 327 624 or visiting www.ruralaid.org.au. Australians who wish to support farming families can make a donation through the website to provide vital support to communities doing it tough.
About Rural Aid:
Rural Aid is Australia’s leading charity supporting farmers, their families and rural communities. We deliver practical assistance during drought, fire, flood and other disasters, helping farming families stay on the land and protect their livelihoods. Through disaster relief, mental health support and community development programs, Rural Aid works with partners, supporters and volunteers to strengthen rural communities and ensure farmers have the support they need to recover, rebuild and remain connected.
For media inquiries, please contact:
Daniel Brown
Media and Communications Officer
0447 116 757
daniel.brown@ruralaid.org.au
