Seeding costs in 2026: what's happening with diesel and fertiliser, and what you can do about it

By Simon Kruger & Chanel Duggan, WMG

Growers across the West Midlands are heading into seeding under some of the most difficult input cost conditions in recent memory. The combination of record-high fertiliser prices, elevated diesel costs and genuine uncertainty about supply is putting pressure on budgets before a seed has gone in the ground. This article pulls together what we know, what it means practically, and where to go for support.

Fertiliser: what’s driving the price and what to expect

The conflict involving Iran has had an immediate and significant impact on global fertiliser markets. The Strait of Hormuz, through which a substantial share of the world’s fertiliser trade moves, has been severely disrupted since late February. Iran and Egypt, two of the world’s largest urea producers, have both curtailed production as a direct consequence of the conflict. Qatar, another major supplier, suspended downstream urea production when it halted LNG output. China has restricted exports to protect its domestic market, closing off one of the alternative supply routes that Australian importers typically rely on.

The result has been a sharp price increase. Granular urea in Australia reached around $1,300–$1,350 per tonne in mid-March 2026, up roughly 55–60% from pre-conflict levels. DAP and MAP prices have also risen, with the Gulf region being a major source of phosphate fertilisers as well as nitrogen.

For WMG growers, the practical implications centre on a few questions: how much fertiliser have you already secured, what are current prices from your supplier, and does your planned crop mix still make economic sense at these input costs? Crops with higher nitrogen demand, particularly wheat and canola, are under more pressure than lower-input options like feed barley or pulses. Some WA growers are reported to be adjusting their rotations in response, though this will depend heavily on individual paddock programs and contractual commitments. Talk to your agronomist and your bank before making significant changes.

It is also worth contacting your fertiliser supplier early if you have not already secured your full program. In seasons where supply tightens across multiple regions simultaneously, delivery lead times can become a constraint.

Diesel: the excise cut and what it actually means for grain growers

The federal government halved the fuel excise effective 1 April 2026, reducing pump prices by around 26.3 cents per litre for three months. That is welcome relief, but the picture for diesel is more complicated than it is for petrol. Diesel wholesale prices rose more steeply on the international market than petrol in the weeks following the conflict’s escalation, meaning the excise cut offsets less of the increase for diesel users than it does for motorists.

Terminal gate diesel prices in mid-April were sitting above 290 cents per litre at eastern state terminals. WA farm diesel prices will vary by supplier and location, so it is worth checking current pricing directly with your supplier rather than relying on metro figures.

For a broadacre cropping program, diesel is a significant cost centre. At seeding alone, fuel consumption typically runs between 8 and 15 litres per hectare depending on the system, soil conditions and machinery setup. Across a 3,000–5,000 hectare program, even a modest reduction in litres per hectare adds up quickly.

Where fuel is actually lost at seeding, and what you can do about it

Research consistently shows that machinery setup has a greater influence on fuel consumption at seeding than machine age or engine specification alone. The main losses occur through wheel slip, rolling resistance and unnecessary draft, and all three are manageable with attention to setup before the season starts.

The table below summarises the fuel savings potential from four key adjustments, drawn from peer-reviewed research and recent extension work. These are not guaranteed outcomes, they depend on your current setup and conditions, but they give a sense of where the biggest gains are available.

Adjustment	Potential saving (L/ha)
Ballasting and slip control (target 6–10% slip)	2–3 L/ha
Tyre pressure optimisation (lowest safe pressure for conditions)	1–1.5 L/ha
Draft reduction (avoid unnecessary depth, maintain sharp points)	2–3 L/ha
Tractor matching (operate at 60–80% load)	1–2 L/ha

Sources: Grisso et al. 2004; Giumelli 2025; Nebraska Tractor Test Laboratory 2023. For a 4,000 ha program, optimising across all four areas could reduce fuel use by 12,000–24,000 litres.

Wheel slip is the most common source of inefficiency in WA seeding systems. The target range is 6–10% for four-wheel drive tractors. Below that, rolling resistance climbs as ballast increases. Above it, energy is being wasted through tyre spin rather than converted to forward motion.

Seeding depth has a direct effect on draft and fuel use, with research indicating draft can rise by around 20% per additional centimetre of depth. On WA sandy soils, deeper sowing is sometimes agronomically justified to reach moisture, so this is a trade-off rather than a simple rule.

Tracked tractors are sometimes assumed to be more fuel efficient than wheeled machines, but the relationship depends on conditions. In dry soils under lighter draft loads, well-ballasted wheeled tractors are typically comparable. Tracks offer an advantage in wet or soft conditions where slip is hard to control.

Our colleagues at Liebe Group have produced a detailed technical article covering these topics in depth, including opener geometry, disc versus tyne systems, controlled traffic farming and precision guidance. It is certainly worth a read so please contact the Liebe Group to get access to it.

Support is available Seeding is a demanding time in any year. If the current season is adding financial or personal pressure, there are services available to help. Rural Financial Counselling Service WA Free, independent financial counselling for eligible farming businesses. 1800 612 004 — rfcswa.com.au Other support services: Rural Aid: 1300 327 624 — ruralaid.org.au Beyond Blue: 1300 22 4636 — beyondblue.org.au Lifeline: 13 11 14 — lifeline.org.au

References

Fertiliser supply and pricing

Australian Strategic Policy Institute. (2026, April). Not just fuel: Australia also relies on Gulf urea supplies. The Strategist. aspistrategist.org.au/not-just-fuel-australia-also-relies-on-gulf-urea-supplies/

Episode3. (2026, March 18). Australia’s urea supply is now a race against the clock. episode3.net/inputs/australias-urea-supply-is-now-a-race-against-the-clock/

FertilizerField. (2026, March 26). Australia fertilizer supply crisis disrupts winter crop planting. fertilizerfield.com/australia-fertilizer-supply-crisis-2026/

Anadolu Agency. (2026, March 25). Strait of Hormuz crisis threatens world fertilizer supply chain. aa.com.tr/en/world/strait-of-hormuz-crisis-threatens-world-fertilizer-supply-chain/3875786

Diesel prices and the fuel excise cut

Australian Competition and Consumer Commission. (2026, April 2). Weekly fuel price monitoring report — Thursday 2 April 2026. accc.gov.au/system/files/weekly-fuel-price-monitoring-report-2-april-2026.pdf

Australian Competition and Consumer Commission. (2026, April 24). Weekly fuel price monitoring update — 24 April 2026. accc.gov.au/about-us/publications/weekly-fuel-price-monitoring-update

Australian Competition and Consumer Commission. (2026, April 2). ACCC monitors fuel excise cut, fuel surcharges and fuel price movements. accc.gov.au/media-release/accc-monitors-fuel-excise-cut-fuel-surcharges-and-fuel-price-movements

Australian Taxation Office. (2026). Excise duty rates for fuel and petroleum products. ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/excise-on-fuel-and-petroleum-products/excise-duty-rates-for-fuel-and-petroleum-products

CarExpert. (2026, April 1). The fuel excise has been cut, so why aren’t petrol and diesel prices cheaper? carexpert.com.au/car-news/the-fuel-excise-has-been-cut-so-why-arent-petrol-and-diesel-prices-cheaper

Machinery setup and fuel efficiency

Grisso, R., Kocher, M. and Vaughan, D. (2004). Predicting tractor fuel consumption. Applied Engineering in Agriculture, 20(5), 553–561. doi.org/10.13031/2013.17457

Giumelli, J. (2025). Correct ballasting busts diesel bills. Farming Ahead, No. 405.

Nebraska Tractor Test Laboratory. (2023). Official Tractor Test Reports. tractortestlab.unl.edu

Liebe Group. (2025). Reducing diesel use at seeding: optimising seeder setup for WA broadacre systems. liebegroup.org.au