AgForce: Fuel Relief Falls Short for Agriculture

AgForce says National Cabinet's decision to halve the fuel excise and suspend the heavy vehicle road user charge does little to address the immediate challenges facing Queensland producers.

AgForce General President Shane McCarthy said while the measures may provide some relief to consumers and parts of the transport sector, they fall short for agriculture.

"This announcement does little to support our sector," Mr McCarthy said.

"Producers already receive the fuel tax credit, and while we recognise the importance of the transport sector, these measures are more likely to benefit end users than farmers - particularly when producers have already seen freight costs increase by 30-40 per cent."

Mr McCarthy said geographically isolated producers are being left behind.

"There is nothing in this package that specifically supports producers in regional and remote areas, who have limited supply options and no ability to pass on rising costs.

"These are the people who need targeted, practical support and right now, they are being overlooked."

AgForce also warned the impact of halving the fuel excise may not translate into meaningful savings for producers.

"History shows these reductions are not always fully passed through the market. Increased demand can offset the price drop, while producers may see their rebate reduced - meaning little to no real benefit at the farm gate."

Mr McCarthy said the sector is already under pressure, with producers making difficult decisions about production.

"Right now, farmers are being forced to reconsider planting and production decisions because of fuel and fertiliser costs. In some cases, it's simply not economically viable to proceed.

"That has serious implications not just for individual businesses, but for supply chains, regional communities and our ability to meet market commitments."

AgForce CEO Niki Ford said the situation on the ground remains serious, with producers continuing to report significant challenges.

"We are hearing from members every single day who are struggling to access fuel and fertiliser, facing rationing, delays and rapidly increasing prices," Ms Ford said.

"This is not a future risk - it's happening now and is impacting day-to-day farm operations across Queensland.

"If these pressures continue, the consequences will move quickly beyond the farm gate. Reduced production, increased costs and supply chain disruptions will inevitably be felt by Australian consumers," said Ms Ford.

AgForce is calling for a national, coordinated response to the fuel and fertiliser crisis, with targeted support measures for agriculture.

AgForce is advocating for:

  • price relief mechanisms to offset baseline fuel and fertiliser costs
  • a FarmKeeper-style support package for producers
  • financial and banking support to assist with cashflow pressures
  • electricity and water pricing relief
  • support for processors and the broader supply chain.

AgForce is urging the government to act now before this escalates into a broader national crisis impacting inflation, jobs and food security.

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