Charles Sturt University webinar explores high farm input costs

Charles Sturt University senior lecturer in agribusiness Christine Storer said global, logistic and weather factors continued to affect primary producers, with wheat farmers spending an average of $271,000 on top-up fertiliser after crops were planted in 2021.

"That was twice what they'd paid the year before and they expect to pay more in the coming year," she said. "It's a really big ticket item."

Dr Storer led a university webinar this week that aimed to offer industry knowledge and insight on research results on farmer decision-making processes, volatility of farm inputs, fertiliser and commodity prices.

She emphasised although not simple, conditions were "not all doom and gloom".

"It's a volatile situation, it's uncertain, but if you can keep informed and understand the basis of why there is volatility there are opportunities to lock in a price that is sufficient to manage in your business," she said.

"As a farmer you can make decisions that you can survive in environments like this."

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While recent grain seasons had been good, the logistic challenges of the pandemic continued and this season's harvest outcome remained uncertain owing to wet weather and flooding.

Rabobank agricultural analyst Dennis Voznesenski said global grain markets would monitor the impact of rainfall and floods, whether La Nina would continue next year and if the Ukraine-Russia grain deal was renewed once it expired on November 19.

"Grain prices globally were expected to stay elevated over the next 12 months but a large local harvest is expected to limit further upside for domestic prices," he said.

"Farm input costs reprieve may be on the way, but only temporary."

Fertiliser markets were expected to be mostly driven in coming months by the availability of natural gas in Europe.

Dr Storer said all rural communities, not just farmers, felt the impact of changing agricultural conditions.

"Everyone in the value chain that's working with farmers needs to understand what sort of decisions they're trying to make, what pressures they're under and support them," she said.

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