TasFarmers, Media Release, 16 March 2026

TasFarmers has warned that just as farmers grapple with a fuel supply crisis, alarm is now growing over surging farm fertiliser prices that could push food costs higher and deepen economic pressure.

The peak body for Tamanian Famers said fertiliser markets were tightening as global supply disruptions and shipping pressures threaten supply chains delivering critical farm fertilisers to Australia.

TasFarmers President, Ian Sauer, said the impact would be felt across the core fertilisers farmers rely on to grow crops.

“It’ll be nitrogen, phosphorus and potassium fertilisers, the key nutrients farmers rely on to grow crops, and their prices are rising,” he said.

“As supply shrinks and freight distances increase, the price goes up. There’s no doubt about it.”

Mr Sauer said fertiliser costs were one of the most critical decisions farmers make when planning crops, and sharp increases can directly affect whether planting proceeds.

“When fertiliser gets to a certain price point, farmers simply won’t put crops in,” Mr Sauer said.

“Companies supplying fertiliser will clip the ticket harder than they normally do, and both farmers and consumers will end up paying

“If the price becomes prohibitive, production drops. It’s as simple as that.”

Mr Sauer warned that reduced planting would inevitably flow through the food supply chain, increasing prices for households already grappling with cost-of-living pressures.

“Consumers will see higher prices. There’s no doubt about that,” he said.

“If the situation deteriorated, Australia would have to import more food than we do now.”

Mr Sauer said the broader economic consequences could extend beyond agriculture if supply shocks continue to push input costs higher.

“The equation is simple, food prices rise, inflation rises, interest rates rise,” said Mr Sauer.

“If interest rates go up too fast, banks start foreclosing on loans. Once that starts happening, you’re walking to the gates of a recession.”

Mr Saur said farmers were also increasingly concerned about wider supply chain pressures, including fuel, chemicals and spare parts, which underpin food production.

“Farmers are worried not just about fuel, but fertiliser, chemicals and spare parts,” said Mr Sauer.

TasFarmers is calling for greater transparency in agricultural input markets and stronger oversight during periods of global disruption to prevent excessive price increases.

“In extraordinary times, we’ve seen two things, panic buying and price gouging,” Mr Sauer said.

“The government needs to ensure the ACCC has processes ready to prevent gouging and ensure markets remain transparent.”

Mr Sauer said the current situation should serve as a case study for governments and industry to strengthen supply resilience for critical agricultural inputs.

“We need governments and industry to sit down and plan for these disruptions before they happen next time,” the President said.

“If we want food security in this country, we must ensure farmers can access the fuel, fertiliser and transport they need to keep producing.”