Australian growers shift to less fertiliser-intensive crops as Iran war costs surge
By Naveen Thukral
Published on April 2, 2026.
Australian farmers are shifting towards less fertiliser-intensive crops as the Iran war increases costs. The price of urea in Australia has risen by around 60% since the beginning of the U.S.-Israeli war with Iran, and Australian diesel prices have also risen. Farmers are trying to reduce fertiliser application and shift planting from nitrogen-intensive to feed barley. Australia's wheat planting could decrease by 10% to 12%, and the production of canola is also likely to decrease. The conflict threatens 65% to 70% of global supplies of urea, a key nitrogen fertiliser, with prices already up 30% to 40%.
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