Qld farmers feel brunt of rising costs

A massive hike in input costs is set to cripple Queensland farmers in the months ahead while the price of everything we eat, from bread to beer, is set to spiral.

The cost of everything from bread to beer is set to spiral after a key ingredient in fertiliser tripled in price on the back of China and Russia’s refusals to export the vital product.

Grain farmers are considering growing less crops or turning to other produce after the cost of urea, the main ingredient in fertiliser, rose from around $500 a tonne a couple of years ago to around $1500 a tonne today.

Farmers say urea is used to produce everything from the barley used in beer, to breads and even a can of baked beans.

China, which provides about 80 per cent of the world’s urea which is also used in the diesel exhaust fluid AdBlue, has banned exports along with Russia in a bid to keep their own farmers supplied.

At the same time the herbicide Glyphosate, which has become essential in Queensland in recent weeks to combat weed growth fuelled by rainfall, has also tripled to around $12 a litre because of glitches in global logistic chains, while diesel prices are also on the rise.

Brendan Taylor on his family property 10km north-east of Warra on the Darling Downs. Pic: David Martinelli

Queensland cattle farmer Matt Ferguson-Tait has become a social media sensation on the popular Tiktok account FNQBeersBullsBoars by warning that everything from basic food items to beer will increase in price because of the exploding overheads.

“Go have a look in your cupboard, go have a look in your fridge, and just about every single item there, at some point, urea has been used to produce that product, whether it be a steak, or a salad, or a can of baked beans,” he said.

“I’m going to get your attention real quick with this – urea is also used to grow the barley to make your beer.”

Darling Downs grain farmer Brendan Taylor says he is not sure what the impact on prices will be, but he knows Queensland grain farmers are rapidly recalibrating their plans for the winter crop.

Grain crops take nitrogen out of the soil which needs to be replaced by urea, which is essentially nitrogen.

With urea costs skyrocketing, farmers may have no choice but to cut back on the product as they prepare ground for the winter crop, and accept reduced yields.

“”You do your soil tests, look at your nitrogen budgets and ask yourself ‘what yield am I chasing?’’ he says.

When the input costs start overshadowing expected profits, which are already highly dependent on positive weather outcomes, farmers have to reassess.

Taylor says some grain farmers will take the option to plant far less, or turn to growing crops which are not so nitrogen dependent such as chickpeas.

To Taylor, the most frustrating aspect of the rise in production costs is the fact so many Queensland farmers have great moisture profiles in their soil, and reasonable expectations of continuing high prices.

“Moisture is not the issue, the cost of production is now the issue.’’

The urea shortage has spread across the world and is now impacting farmers from North America to India.

In Australia the Federal Government has stepped in to organise an agreement with Incitec Pivot to increase local production of urea at its Brisbane plant to handle the fall off in imports.

But much of that urea will be required to provide AdBlue to keep diesel trucks on the road.