Farmers hedge their bets on inputs

Recent rain has helped boost confidence among farmers who were hedging their bets about applying nitrogen fertiliser.

Recent rain has helped boost confidence among farmers who were hedging their bets about applying nitrogen fertiliser.

With prices of $600 to $700/tonne for urea and more rain forecast for several of Australia’s key cropping regions farmers have been on the paddocks with the fertiliser spreader.

Northeast Victorian farmer Andrew Russell farms at Lilliput and said urea had gone out in front of some of the rainfall events.

“We are at the point now where early-sown crops have germinated, and they are fairly patchy,” he said.

“They need some nitrogen.”

With concerns about the season and dry conditions in parts of Victoria, particularly the western districts, Mr Russell said farmers were being conservative with inputs this year.

“They are being very strategic about it and not putting huge amounts on ... this is going to be the case until we see a more general rain event,” he said.

“People are putting enough on to keep the crop in good health.”

Mr Russell said the urea price was ranging from the high $600/tonne mark and some farmers had stock stored on farm.

Borambola farmer Alan Brown. Picture: Brad Newman

Borambola, southern NSW farmer Alan Brown said he recently flew across the north of the state and said northern NSW was looking better than the south.

He said in the areas that had received rain, there were applications of urea and single super going out.

“There’s possibly more confidence in the north to apply inputs,” he said.

“Around here, it is still dry, and things are on the edge, particularly for livestock feed,” he said.

The June edition of Agribusiness Monthly from Rabobank indicates that fertiliser demand throughout Australia remains subdued.

Australia was also expected to remain sensitive to global nitrogen pricing, and growers in Western Australia and South Australia were expected to continue buying urea later into the season.