Canberra | Reuters — Farmers in Western Australia, the country’s biggest grain export region, will swing to canola from wheat and plant less land than last year, an industry body said on Friday, as they grapple with concerns over the availability and cost of fuel and fertilizer.
The Iran war has disrupted supplies of both items to Australia, one of the world’s biggest grain exporters which relies on imports to meet its needs.
That will spur farmers to plant less wheat, which is hungry for fertilizer and earns a low price, and more canola, which brings the best financial returns, the Grain Industry Association of Western Australia said in a report.
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WHY IT MATTERS: Australia is one of the world’s major grain exporters. High fertilizer prices may lead to lower yields in some grain growing regions around the world as farmers reduce fertilizer use or switch to less hungry crops.
The extent of land planted with wheat is set to fall 14 per cent to 3.68 million hectares (9.1 million acres) from last year’s 4.3 million hectares (10.6 million acres), it added.
Barley area should grow one per cent to 2.06 million hectares (5.1 million acres) from 2.04 million hectares (5 million acres), and canola area is set to expand 16 per cent to 1.99 million hectares (4.9 million acres) from 1.71 million hectares (4.2 million acres).
“Total area planted will be down from the record 9.45 million hectares (23 million acres) planted in 2025 due to the potential of reduced profitability,” GIWA said, referring to all winter crops including oats, lupins and pulses.
Many farmers are considering sharp cuts to sowing programs because of high costs and uncertainty about fuel and fertilizer supply but the planting season leaves them enough time to delay those decisions, if necessary.
“At this early stage of the season, most growers are sticking to subtle adjustments in cropping plans rather than making wholesale changes and are waiting to see how the seasonal and political climate unfolds,” GIWA said.
“The poorer performing paddocks will be left out to fallow area or replaced by a pasture or grain legume if it fits the rotation.”
Subsoil moisture reserves in most areas of Western Australia should help crops to grow, it added.
— Reporting by Peter Hobson
