General News
6 October, 2026
High input costs for farmers
Farmers have been feeling the pressure of exorbitant spending since the start of the year as fertiliser and fuel prices surged, driving up input costs for this year’s harvest.
Farmers have been feeling the pressure of exorbitant spending since the start of the year as fertiliser and fuel prices surged, driving up input costs for this year’s harvest.
Carron farmer and VFF Grains president Jason Mellings said the financial strain farmers have felt since the start of the year is significant.
“The problem is it absolutely squeezes our profit margins,” Mr Mellings said.
“You take a year like this one, it's as good as you’ll see, and the extra profit margin we make, we don't keep that now.
“It goes into fertiliser and fuel, and that money ends up overseas because all of our fertiliser and fuel comes from overseas.”
Mr Mellings said Australia would retain a small portion, with most of the expenditure benefiting overseas companies.
“The extra money we’ve got to buy the new header or the new tractor is pretty much disappeared because the money’s left the country; it makes buying stuff within Australia hard,” he said.
“The whole cost of all of this increases our risk profile too; as we buy (fuel and fertiliser), the risk just doubles.”
“Instead of paying $800 for fertiliser, you’re paying at the moment it's about $1400, you’ve got to find the money, and when you sow it, it's absolutely got to come home.”
This year’s crops are predicted to yield exceptionally, with a bumper harvest on the horizon; however, surges in fuel prices will drive up costs over harvest, adding to input expenses.
“This is the second time this year we’ve been heading towards $3 a litre for fuel, and not just farmers, but it syphons a lot of money out of the economy,” Mr Mellings said.
“You can picture your headers parked up in the corner of a paddock because they can't get fuel; it’ll be devastating.
“Will it get below $2.50? Probably not, but at the moment, the supply looks good, and the price doesn’t look like it's going anywhere too high at the moment.
“But, it's almost as bad as the weather forecast; there's nothing to say something else bad won't happen overseas again, and all of a sudden prices will go through the roof and supply will shut up shop.”