Ukraine and Russia wars driving up costs for Australian grain farmers
Wars in Ukraine and Iran are raising grain prices, fuel, and fertiliser costs directly for Australian farmers.
Geopolitical conflict thousands of kilometres away is hitting Australian farm profits through global commodity markets. Wars in Ukraine and Iran are keeping energy, shipping and grain prices volatile, directly impacting Australian farmers.
ASX wheat jumped 7%. Australian urea costs rose 11% over the month.
Crude oil is 20% higher. Black Sea grain flows remain heavily disrupted despite recurring peace talk.
Russia's grain exports fell 31% across July and August, forcing buyers like Egypt to shift toward European suppliers. Australia's urea now costs A$802 per tonne, up sharply.
Decisions in Washington and Moscow shape both the price farmers receive for grain and what they pay for fuel, freight and fertiliser.
- 7 per cent
- ASX wheat rise
- A$802 per tonne, up 11 per cent
- Urea cost Australia
- 20 per cent higher
- Crude oil rise
- 31 per cent (July-August)
- Russian grain exports fall
Why it mattersRising input costs and volatile grain prices squeeze farm margins when supply chains stay disrupted.
AustraliaAustralian grain farmers face higher costs for fuel, fertiliser and shipping while grain export prices climb, squeezing margins in a key export sector.
✓ Claims checked against the source. checked 2 d ago
