Wimmera Farmer Risks $600,000 Loss as Urea Prices Hit $1,400 a Tonne
Updated
Updated · The Guardian · Jun 10
Wimmera Farmer Risks $600,000 Loss as Urea Prices Hit $1,400 a Tonne
1 articles · Updated · The Guardian · Jun 10
Summary
$600,000 is the hit John Bennett expects on his 10,000-hectare Wimmera grain farm as Middle East conflict drives up fertiliser costs and disrupts deliveries.
Urea—critical for lifting yields on the region’s shallow soils—has nearly doubled since Jan. 1, risen about 75% since the US-Israel war in Iran began, and now costs about $1,400 a tonne.
Those price jumps are compounded by supply uncertainty: some shipments have been delayed, others repriced higher, and further cargo Bennett’s son secured may still not arrive for another month or two.
The strain is sharpening calls for domestic nitrogen production after Australia’s last urea plant at Gibson Island closed in 2023, despite the country’s ample gas reserves.
As a distant war cripples Australian farms, is one new plant enough to secure the nation's food supply?
With fertiliser prices soaring, are green ammonia solutions a realistic escape for farmers or just a distant dream?
From Import Reliance to Domestic Revival: Australia’s Battle with the 2026 Urea Price Surge
Overview
In mid-2026, Australian farmers are facing a severe crisis as urea prices have nearly doubled to A$1,400 per tonne, causing major financial losses like the $600,000 projected by John Bennett in the Wimmera. This surge is driven by global events, especially the Iran conflict, which led to the closure of the Strait of Hormuz—a key route for fertilizer shipments. The disruption sharply reduced urea availability, leaving Australia, which relies entirely on imports, especially vulnerable. These combined shocks are putting immense pressure on farmers and threatening the stability of the nation’s agricultural sector.