Costs making farmers consider whether it is worth harvesting this year

Hundreds of dollars in overheads are being added to bins of fresh produce being harvested around the state and farmers have no choice but to wear the cost.

Increased fuel and fertiliser costs are not only affecting profits this season but have begun to affect choices growers are making for next season.

Wesley Dale farmer and TasFarmers Vegetable Council chairman Nathan Richardson said he knows farmers ready to walk away from the crops they would normally sow in spring.

“For some of these crops the margins are already reasonably thin,” he said.

“Right when we’re ready to prepare fields for winter and autumn there are lots of unknowns and there are some farmers who have decided not to commit to certain enterprises next season and, really, everyone is understanding of that.”

Mr Richardson grows grain, potatoes and fattens livestock on his farm Brookfield and struggles to think of a time in 150 years of his family farming on the North-West that the future has been so uncertain.

“I’m lucky that our grain harvest was completed mid-March before fuel became so ridiculously expensive,” he said.

“But the reality for most is that livestock that has been fattened needs to go to the market – the crops still in the ground need to be harvested.

“We’re in the thick of carrot, onions, potatoes, beans – so who is going to pay the extra cost of production? The farmers and the transport operators can’t afford it. It will filter down the chain to the consumer.”

Mr Richardson is critical of the State and Federal Government reactions to the plight of farmers, saying a 26 cents per litre saving at the bowser, when the amount transporters and farmers can claim on fuel tax credits is reduced, helps everyone except those who need diesel the most.

“What governments need to do is stop pussy-footing around and saying everything’s fine. Obviously it’s not fine and more needs to be done to ensure strategic supply – transport and agriculture need to be on the priority list when it comes to fuel.”

TasFarmers has warned that growers are considering ceasing harvest due to a lack of government planning, fertiliser shortages and diesel prices.

TasFarmers president Nathan Cox said the economic pressure was making it difficult for farmers to continue producing food and fibre.

“Given where fuel prices are at the moment, and with fertiliser becoming harder to access, farmers are seriously considering whether to harvest,” Mr Cox said.

“Our cost inputs have squeezed margins so tightly that harvesting may no longer stack up for some farmers, and it’s a decision more and more will be forced to weigh up.

“In this operating environment, it can be more cost-effective to just plough it back in. That’s not what we want. Farms exist to feed and clothe people.”

Primary Industries Minister Gavin Pearce said they are acutely aware of the impact the global fuel crisis is having on primary producers in Tasmania.

“We are working closely with industry, fuel suppliers and the Australian Government to monitor supply and pricing conditions.,” he said.

“We have recently passed legislation that strengthens Tasmania’s energy security framework and enhances our ability to act decisively during supply risks or emergencies.

“We continue to advocate for national measures which recognise Tasmania’s unique challenges and reliance on fuel for agriculture, freight and food security.”