NSW Farmers has warned state and federal governments they must urgently respond to an acute cost-of-production shock, with new data showing spikes in fuel and fertiliser prices caused by global shortages have sharply reduced farmer confidence.
The latest NSW Farmers Farm Business Sentiment Survey found fuel and fertiliser prices had risen by as much as 80 per cent, with higher costs flowing through to freight (up 60 per cent), farm chemicals (up 40 per cent) and labour (up 25 per cent).
The survey also found confidence in the year ahead had collapsed, with 80 per cent of farmers expecting business conditions to worsen over the next 12 months.
NSW Farmers president Xavier Martin said farmers were already changing decisions underpinning food and fibre production.
“We were expecting a drop in conditions and confidence, but this is a stark warning to governments that food security, and the economic value of farm production, is taking an absolute beating,” Martin said.
“This data confirms the multitude of anecdotal reports that things are tough for farm businesses, and that should be a wake-up call for the nation.”
Survey respondents said they were scaling back production or reducing its intensity by 22 per cent, while 36 per cent were changing cropping and stocking plans.
Martin said governments must move quickly with practical, targeted measures to reduce the extraordinary costs facing farming businesses and avoid further reductions in planting and stocking over coming months.
“To stabilise production and protect regional jobs, we need immediate relief that lowers on-farm and supply-chain costs, and finance settings that help farm businesses maintain liquidity and keep operating through this period of uncertainty,” he said.
NSW Farmers proposed time-limited tax relief measures to directly reduce extraordinary cost pressures and support investment in on-farm storage and efficiency. The proposals included relief from payroll tax, insurance-related taxes and council rate increases where feasible, as well as waiving tolls, heavy vehicle charges and registration fees to ease freight costs.
The organisation also urged the Commonwealth to extend and expand the instant asset write-off beyond June 2026 to support investment in storage and fuel and fertiliser efficiency technology.
Over the medium term, NSW Farmers called for expanded access to low or zero-interest finance and underwriting arrangements to help farmers refinance, maintain working capital and continue cropping and stocking plans.
The proposals included new Rural Assistance Authority loan products to support efficiency and storage technology, faster access to relevant Regional Investment Corporation loan products, and underwriting of existing farm insurance, alongside consideration of underwriting options for new products including crop, stock and weather cover.
Read all the way through to the end of the story? So did lots of other people. Advertise with North Coast Times to reach locals who are interested and engaged. Find out more here.