31/03/2026
Fuel & Fertiliser Crisis to Affect Agribusiness Values
Rising fuel, fertiliser, and freight costs are no longer background pressures—they are actively shaping cropping decisions and flowing through to both farm performance and rural property markets in real time.
This is not a standard planning season. With input costs volatile and interest rates increasing the cost of capital, producers are operating in a live decision environment where margins shift week to week. The result is tighter cash flow management, reduced appetite for risk, and a stronger focus on efficiency.
Three clear strategies are emerging. Some operators are adopting long fallow to preserve capital and minimise exposure. Others are pursuing partial planting programs to balance risk and maintain production. Full cropping programs are still occurring, but only where returns are strong enough to absorb elevated costs and justify the risk.
What has fundamentally changed is timing. Decisions are no longer locked in months ahead—they are being made in narrow windows, driven by movements in fuel and fertiliser pricing, input availability, commodity markets, and rainfall confidence. This shift places a premium on flexibility and ex*****on, not just scale.
To be more specific it is Nitrogen availability which is the big issue with fertiliser. It will change crop rotations significantly as people will have to grow more pulse crops if moisture becomes available due to limited to no Nitrogen availability.
These conditions are also influencing rural property markets. Higher interest rates are reducing borrowing capacity and softening demand, while increased production risk is placing greater emphasis on income reliability. As a result, high-quality assets with strong soils and rainfall security are holding value, while more marginal country is facing increased pressure.
Overall, both production and property markets are transitioning toward a more disciplined, margin-focused environment—where timing, cost control, and resilience are critical, rather than purely capital growth.
For your independent rural property valuations and due diligence, contact your local valuation agribusiness specialists –
James Skuthorp – 0409 466 779
Tom Needham – 0412 740 093
Roger Hill – 0456 196 076
Brennan Leggett – 0408 030 672