The increase in fertilizer prices is no longer just raising costs but also reshaping the cropping structure: more and more farmers are looking for crops with lower input requirements in Australia, but the usual pattern is also changing globally.
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Price surge forces producers to change course Australian farmers' planting decisions are now dictated not primarily by market prices, but by costs. According to a Reuters report, producers may shift towards less nitrogen-intensive feed barley instead of wheat and canola for the next season, as rising input costs pose less financial risk. Urea and diesel prices have skyrocketed The price of urea in Australia has risen to approximately 1,350 Australian dollars per ton, representing a roughly 60 percent increase since the start of the conflict. Over the same period, diesel prices have risen by 88 percent. Dennis Voznesenski, an analyst at the Commonwealth Bank of Australia, told Reuters that farmers are seeking to reduce fertilizer use and are therefore choosing crops other than those with higher nitrogen requirements. Wheat and canola acreage may decrease According to analyst estimates cited by Reuters, Australian wheat planting area could decline by 10-12 percent compared to last ...