Australian farmers are calling for increased federal support as they continue to grapple with the fallout from soaring fuel and fertiliser costs, which have severely affected agricultural production and profitability. Despite recent diplomatic progress toward a potential Iran peace deal, the National Farmers Federation (NFF) warned that supply chain disruptions are likely to persist for several months.

The crisis, marked by a doubling of diesel and fertiliser prices coupled with shortages, has compelled many producers to reduce cropping areas and accept diminished financial returns. NFF chief executive Mike Guerin emphasized that the recovery to pre-conflict conditions would not be immediate. “All the advice we are getting is that it will be a matter of months by the time you get oil terminals going again, ships loaded through refineries in Asia and down to Australia,” Guerin said.

Although there has been some easing in prices recently, the NFF highlighted that farmers have endured challenging months since the onset of the crisis. Guerin stressed the need for government recognition of the economic strain on primary producers and small businesses in rural regions. “The economics of food production were tight enough as they were pre-war, but post-March most producers are losing money by planting crops and growing food. It will take us time to recover from that,” he said.

To assist in sector recovery, the NFF advocated for extending the fuel rebate program, which currently aids other parts of the supply chain but not farmers directly. The organisation also called for protective measures, including exempting family farms from forthcoming capital gains tax changes, granting additional time for compliance with environmental regulations, and postponing increases in export services cost recovery fees.

Looking ahead, agricultural stakeholders urge a sustained political focus on food security and securing critical inputs amid global uncertainties. Guerin pointed to the need for Australia to strengthen self-reliance in fertiliser production and fuel refining capacity. He further recommended developing the biofuels industry and maintaining the recent diversification of supply sources for key agricultural inputs to reduce vulnerability.

Nationals leader Matt Canavan also urged the federal government to provide targeted financial assistance, such as loans tailored to farmers, as well as regulatory relief measures. He criticized what he described as a “war on farmers,” calling for the rollback of environmental legislation changes agreed to with the Greens, deferral of planned cost recovery hikes, and a pause on water buy-backs within the Murray-Darling Basin.

The fertiliser shortage has already led many grain growers to cut back on winter plantings, impacting profit margins in other sectors like vegetable production. Rabobank Australia’s general manager of research, Stefan Vogel, noted that an easing of the crisis globally could pressure Australian farmers by dampening hopes for higher grain prices next year. He observed that northern hemisphere growers are beginning harvests and preparing to plant new crops, which—if shipping lanes remain open and prices fall—may result in more stable supplies and lower prices internationally.

The federal government has indicated that further decisions on fuel and cost-of-living assistance are imminent and affirmed its ongoing engagement with the agricultural sector. Agriculture Minister Julie Collins acknowledged uncertainty about the duration of the crisis but pledged continued collaboration to mitigate its effects. “We’re not sure about how long a tail this is going to have, but we’ll continue to work with industry in the sector and we continue to engage with them regularly,” Collins stated.