Arable farmers are grappling with soaring costs and supply fears heading into one of their busiest times of year.
Riversdale grain farmer Chris Dillon said diesel costs had nearly doubled within a month, leaving farmers with little ability to respond.
Unlike transport operators, who could pass on fuel surcharges, arable farmers were locked into contracts and must absorb the additional cost.
‘‘We’re stuck carrying it in a year where things aren’t that good anyway,’’ he said.
The price surge follows escalating tensions in the Middle East, with attacks on Iran by the United States and Israel disrupting global supply and closing the Strait of Hormuz, a critical oil shipping route.
Mr Dillon’s operation is moving from harvest into a crucial five to six-week window preparing for the next planting season.
Running five tractors fulltime, his farm consumed between 6000 and 7000litres of diesel a week at peak.
A single 320-horsepower tractor can burn through 500 litres a day, contributing to an estimated $190,000 fuel bill for the peak period — a figure that has surged in recent weeks.
There were also other risks — rising fertiliser costs, the potential for supply shortages and the possibility of missing planting windows all threatened farm viability.
‘‘It’s the question of whether we’re economically viable doing what we’re doing,’’ Mr Dillon said.
While the wider agricultural sector remained relatively strong, supported by solid dairy and red meat prices, the arable sector played a critical role supplying feed and maintaining pasture for livestock farming.
Mr Dillon warned that sustained pressure could undermine that.
‘‘If we lose critical mass in the arable industry, it flows through to dairy, pasture renewal and the wider pastoral sector.’’
In Central Otago, Wedderburn farmer and district councillor Stu Duncan said supply was emerging as the bigger long-term concern.
He had already heard of remote properties missing out on expected fuel deliveries.
‘‘We saw it in Covid. Who says the fuel supplies won’t stop in Australia? Why send it to the furthest inland area in New Zealand?’’
Mr Duncan said rising fuel costs were already impacting everyday life in rural communities.
In the Maniototo, where residents often travelled long distances for sport and schooling, higher fuel prices could limit participation.
‘‘It will have a bigger impact on the community than Covid had.’’
A cold, dry season had added further strain, with some farmers feeding out supplementary grain to stock up to two months earlier than usual.
As a councillor, Mr Duncan said rising fuel costs would also hit local government budgets, with essential services like road maintenance becoming significantly more expensive.
‘‘Our entire rates increase could be swallowed by fuel for graders,’’ he said.
Federated Farmers high country chair and Matakanui Station owner Andrew Paterson said farmers were fortunate to be coming off a relatively good season, but rising costs were quickly eroding those gains.
Fuel costs on his property had already increased by $4000 in a month, with an additional $10,000 per month now budgeted.
‘‘We have to be able to plant crops and then feed them out.’’
At the same time, global disruption was expected to push up the cost of nitrogen fertiliser, about 40% of which typically moved through the Strait of Hormuz.
‘‘There is enough for autumn, but the price will increase as it has to be sourced elsewhere,’’ he said.
Mr Paterson said the prospect of fuel rationing was also concerning, particularly given the heavy reliance on diesel-powered machinery for winter feeding.
Transport companies had also introduced fuel surcharges, increasing the cost of moving stock and softening store prices.
At the same time, uncertainty in global shipping had reduced demand for mutton exports to the Middle East, pushing more stock into the meat works which, in turn, lowered prices.
On the positive side, interest rates were low.
However, Mr Paterson said farmers needed another strong year to rebuild financial resilience.
