Farm Online has the following report on the impact of rising oil prices on Australian farm businesses:
Farm incomes have been tipped to fall by a third in 2005-06, despite the optimism generated from the winter crop comeback and good prices for many rural commodities.
As the Westpac-National Farmers’ Federation Rural Commodity Index rose 2.9pc in September on the back of improved sugar and grain prices and record high cattle prices, the Australian Bureau of Agricultural and Resource Economics (ABARE) September Commodities report forecast the fall of net farm income in 2005-06 compared to 2004-05, driven by big fuel price increases.
“It is unfortunate that just as we look like we might be emerging from one of the worst droughts in living memory the farming sector is being slugged by record high oil prices which are feeding into fuel, fertiliser and chemical costs,” NFF Farm Business and Economics Committee chair, Charles Burke, said.
“Compared with the $13B farmers earned in 2001-02, net earnings of $4.4B this year looks fairly grim.
“With fuel costs up 34pc over this time and 20pc up on last year, it is not hard to see oil prices are having a big impact.


Jennifer Marohasy BSc PhD has worked in industry and government. She is currently researching a novel technique for long-range weather forecasting funded by the B. Macfie Family Foundation.