Reports of easing fertiliser prices are great news for Aussie farmers, but they warn more will need to be done in order to combat food inflation.
According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), fertiliser costs increased from $64 to $82 per hectare from 2019 to 2021, while the cost of chemicals increased from $30 to $63 per hectare.
The war in Ukraine and COVID-induced supply chain disruption had pushed prices for the critical farm input to record levels in recent years, placing increased cost pressure on Australian farmers as they also faced high fuel prices and worker shortages. But easing fertiliser prices meant farmers would find it easier to balance their books, NSW Farmers Grains Committee chair Justin Everitt said.
"Farmers have been concerned about the rising cost of producing food and fibre, the rising cost of power, the rising cost of fuel and fertiliser," Mr Everitt said.
"We have very little ability to pass on price rises to our customers, and shrinking profit margins have discouraged a lot of future farmers from joining the industry.
"Thankfully we're seeing some light on the horizon with fertiliser prices, and if we can get the right policy settings in place from all levels of government we'll be able to feed the future."
While easing prices were welcome, Mr Everitt said more would need to be done in order to combat food inflation, such as increasing research and development to help farmers adopt new productivity-boosting technologies.
"Producing more with less inputs are a fundamental way to tackle inflation and relieve the stress of rising input costs, so greater investment in into things like precision agriculture technologies would be a great help," Mr Everitt said.
"If we can reduce the amount of fertiliser and chemical applications then we'll be able to produce more food and fibre at a lower cost and get it to consumers at a lower cost, which will reduce cost-of-living pressures.
"Farmers and families are in this together - albeit on different ends of the supply chain - and farmers really appreciate the support of Aussie families."
