Australian Farmers Shift to Low‑Fertiliser Crops as War Drives Costs

In the next planting season, Australian growers are leaning toward crops that need less nitrogen, such as barley, instead of high‑fertiliser staples like wheat and canola. The shift comes as the cost of urea, a key fertiliser, has jumped by about 60% since the start of the conflict in Iran. Diesel prices have also risen sharply, adding to farmers’ expenses. Because early growth depends on fertiliser, many farms are cutting back the amount of nitrogen‑heavy crops they plant. Some producers are even reducing overall acreage, though this change is still small compared to the overall shift in crop choice. Analysts predict a 10% to 12% drop in wheat planting, down from the previous year’s 12. 4 million hectares. Canola cultivation is expected to fall as well, despite its higher profit margin.Australia remains a major global supplier of wheat and canola, exporting to markets in Asia, the Middle East and Europe. However, the war has disrupted fertiliser supplies through the Strait of Hormuz, which handles about 30% of worldwide fertiliser trade. Global shipments of urea could be cut by up to 70%, driving prices higher and making it harder for farmers to secure the needed nutrients. Other countries are feeling similar pressure. U. S. growers plan to plant more soybeans and less corn in 2026, while China has limited its own fertiliser exports. India is looking for alternative sources to support its summer crops. The cost of farming has surged in the last month, with fertiliser and fuel expenses rising dramatically. This financial strain is prompting Australian farmers to reconsider their crop portfolios, favoring lower‑cost options that still meet market demand.