Statement on first agreements to underwrite shipments of fertiliser

Comments attributable to NFF President, Hamish McIntyre

This is a welcome and practical step that will help get fertiliser where it’s needed most, and a direct result of advocacy and the importance of industry and Government working together.

We also acknowledge the four additional shiploads of fuel that will deliver an extra 200 million litres of diesel from South Korea, Brunei and Malaysia.

We’ve been clear, fertiliser isn’t optional for Australian farmers. Without it, we simply can’t grow the food and fibre Australia relies on. Australian agriculture is on track to contribute more than $100 billion to the economy this year and supports over 250,000 jobs, with nearly all production reliant on fertiliser and diesel.

This outcome reflects the Government acting on the concerns we’ve been raising directly on behalf of farmers. Coupled with last week’s announcement securing 250,000 tonnes of urea, it will help restore some confidence heading into the season.

But we are still a long way from being out of the woods. Despite this news, farmers and regional businesses are still under real pressure, facing tight supply, rising costs and tough decisions.

As National Cabinet meets this week, we need continued action to shore up supply, an agriculture-specific plan and targeted support for those facing circumstances no business could reasonably prepare for.

ENDS

Key NFF asks

• An agriculture-specific plan to secure fuel and fertiliser supply for farmers and fishers into the uncertain months ahead, including clear ‘trigger points’ for government-escalated action to safeguard food production in both the short and medium term. The plan must drive sector coordination across all jurisdictions and all commodities.
• The Government must continue to use regulatory tools to increase supply of fuel and fertiliser into regional areas, such as what we have seen announced today.
• The inclusion of Agriculture, Fisheries and Forestry industries as Essential Users under the Liquid Fuel Emergency Act 1984.
• The Government must provide targeted business support for farming businesses facing acute financial pressure.
• The acceleration of medium to long term solutions to strengthen supply chains, including building Australia’s sovereign capability, biofuels industry and a National Food Security Strategy that prioritises critical input supplies.

Background

The Federal Government has announced it’s working with fertiliser companies, CSBP (Wesfarmers) and Incitec Pivot, using the new Strategic Reserve powers to underwrite shipments of fuel and fertiliser. This framework enables companies to lock in shipments from overseas and get supply into the country faster.