South Australian grain producers have raised serious concerns about diesel and fertiliser affordability and availability ahead of seeding, according to Grain Producers SA (GPSA) survey results.
The survey, which received 784 responses, highlights the vulnerability of grain producers heading into one of the most input-intensive periods of the season.
Grain Producers SA Chief Executive Officer Brad Perry said the results reflect growing anxiety across the industry as fertiliser and fuel pressures intensify.
“These results show just how exposed grain producers are heading into seeding, with limited diesel storage capacity and ongoing uncertainty around both supply and price of fertiliser and fuel,” Mr Perry said.
“We welcome the Federal Government’s fuel initiatives as an attempt to provide relief, but for grain producers the reality is the fuel excise changes don’t deliver a net benefit.
“Grain producers claim back fuel excise through Fuel Tax Credits, so while there may be a short-term reduction at the pump, that is offset by a reduced rebate. In simple terms, it’s largely a cashflow timing difference rather than real savings.
“At a time when growers are heading into peak diesel use for seeding, cashflow does matter but it doesn’t change the underlying cost of production.”
The Federal Government this week announced the establishment of a national fertiliser taskforce, a commitment to fertiliser underwriting, and a deferral of export cost recovery charges, aimed at easing pressure on producers.
“GPSA welcomes these announcements as a first step, but the reality is many South Australian grain producers have already made their fertiliser decisions with seeding imminent,” Mr Perry said.
“For growers, these decisions are largely locked in. It’s no longer about ideal agronomy; it’s about what product they’ve been able to secure and what they can afford.”
Mr Perry said GPSA had moved early to address the issue at a state level, successfully seeking the establishment of a fertiliser taskforce through the South Australian Government more than a week ago, which has already met twice.
“That early action has been critical in ensuring South Australia has a coordinated and locally informed response, bringing industry and government together quickly,” he said.
Despite this, Mr Perry said significant concerns remained around transparency, pricing and supply, particularly for key inputs.
“Grain producers are telling us they still don’t have clear visibility on fertiliser deliveries, stock levels or how pricing is being set, and that uncertainty is making decision-making incredibly difficult on farm,” Mr Perry said.
“Access to fertiliser, particularly urea, is absolutely critical. If growers can’t access it when they need it, or it’s priced out of reach, there will be a direct impact on yield potential and overall production.”
Mr Perry said the survey responses also highlighted the compounding pressure of rising input costs following multiple difficult seasons.
“Grain producers are coming off drought in many cropping regions and tight margins, and they are telling us this uncertainty is adding further stress to already fragile farm businesses,” he said.
“South Australian grain producers have no choice but to price takers operating in a global export market. Unlike other sectors, they can’t simply pass on increased costs of fertiliser and diesel, which means these pressures go straight to the bottom line.
“We need urgent improvements in transparency, confidence around supply, and a clear focus on affordability if we are to protect this season’s crop.”
The survey was conducted from 11 to 30 March 2026 and results will be provided to the State and Federal Governments. Results show South Australian grain producers are entering the season in a highly exposed position:
• Limited diesel storage capacity is a major vulnerability, with: o 39% holding less than 10,000 litres, and 43% holding 10,000 to 25,000 litres, meaning that 82% of growers rely on frequent deliveries during peak periods.
• Fertiliser pricing is significantly elevated, with: o 23% of growers reporting prices are unsustainable for their business, and 87% of grain producers paying more than last year.
• Fertiliser availability is a major issue, with: o 46% very concerned about supply and 18% already experiencing difficulty securing fertiliser, resulting in 64% of growers facing serious supply pressure heading into seeding, and 92% have some level of concern.
• Diesel supply and pricing pressures are widespread, with: o 48% reporting significant concern due to panic buying and 32% saying supply is becoming difficult to secure, meaning more than 80% of growers are experiencing supply issues, with virtually no growers reporting normal conditions.
• Fuel supply disruptions would quickly impact operations, with: o 33% of growers holding only 1 to 2 weeks of diesel and 16% holding around one week or less, meaning more than half of grain producers surveyed would run out of fuel within two weeks if supply was disrupted.
• Diesel delivery disruptions are already occurring, with: o 43% experiencing delayed deliveries, 11% reduced orders and 7% cancelled orders, meaning more than 60% of growers have already experienced some form of supply disruption.