Seeding and cropping decisions swayed by resulting pressures from Iran War

Australia’s grain producers are already swallowing the pressures on the fuel and fertiliser supply chains as fuel stations in WA begin to run dry, with many rethinking their seeding decisions.

The Federal Government recently appointed Anthea Harris as the fuel supply task force co-ordinator and launched a national food supply chain assessment in the ongoing effective closure of the Strait of Hormuz, through which a significant amount of the world’s oil supply flows through.

Grain Producers Australia warned agriculture was bearing significant impacts of Australia’s extremely vulnerable fuel chain and supply — particularly the grains industry as it gears up to being seeding for this years winter crop.

WA growers have considered cutting back on their seeding operations due to skyrocketing diesel and fertiliser prices, and issues in gaining supply — potentially affecting the State’s ability to break or reach last year’s harvest record of 27.35 million tonnes.

Announced on Monday, the assessment will “feed into” the work of the fuel supply task force, focusing on diesel supply chains before expanding to other key agricultural inputs such as fertiliser.

GPA chair Barry Large said a supply chain assessment was a constructive step by the Federal Government but practical measures needed to be delivered immediately instead of a “report for the bookshelf”, as growers make cropping decisions with the building pressures of the day in front of them.

“For a $26 billion grains industry, reliable access to fuel and fertiliser underpins production and Australia’s food security,” he said.

Federal Agriculture Minister Julie Collins said the Government was working “day and night” with Australian farmers and producers to manage the impacts of the conflict in the Middle East.

“Our farmers and producers feed millions of people both here and abroad but events like the conflict in the Middle East reaffirm why we cannot be complacent,” she said.

“While Australia is food-secure, we recognise the importance of supply chain resilience, including the supply of fuel and fertiliser, which is why we have commissioned this assessment.”

The assessment will produce a report that is expected to be delivered within one month — a final report is set to be delivered at the end of 2026.

GPA called for targeted tax incentives to support on-farm fuel storage using measures such as accelerated depreciation.

“That’s a practical step that can be implemented quickly and would make a real difference when supply is tight,” Mr Large said.

“This needs to lead to changes that improve supply chain resilience, not just confirm what industry is already experiencing.”

He said growers are heading into seeding season managing issues of all varieties while keeping an eye on the unfolding global conflict, and making fertiliser decisions on a “very tight margin”.

“It’s not any one issue on its own, it’s how they all land at once that makes it difficult on farm. That’s the challenge, we’re making critical decisions now without knowing how long this runs for,” Mr Large said.

Ms Collins said the assessment is designed to provide advice to the Federal Government to protect Australia’s food security in the face of potential disruptions to production and supply chains.

“We continue to progress our National Food Security Strategy, which is about keeping food production and supply chains moving, and ensuring Australia continue to remain competitive on the global stage,” she said.