Farmers watching international situation closely

Tuesday, 17 March 2026

As the Middle East conflict extends into its third week, rising fuel prices, looming fertiliser shortages and potential transport problems are causing uncertainty for the rural sector.

President of Federated Farmers Wairarapa Robert Hickson said the region’s farmers were watching the international situation closely, especially the likely impact on fuel and fertiliser.

“Fuel costs are probably the most immediate concern locally.

“Diesel is a major input for farming operations, and rising fuel prices quickly translate into higher costs for fertiliser freight, spreading, stock transport, and general farm operations.”

He said agriculture was exposed to changes in energy and transport costs, and sustained disruption to global supply chains could flow through fairly quickly to farm businesses and, ultimately, consumers.

“For most Wairarapa farmers the key issue is not immediate shortages, but uncertainty. Farming businesses plan fertiliser programmes and stock policies months in advance, so volatility in input prices makes those decisions more difficult. If higher global energy and fertiliser prices persist through winter and spring, that will eventually flow through into the cost structure of New Zealand food production.

“The sector is resilient and farmers are used to managing global volatility, but it does reinforce how interconnected our food system is with international energy markets and shipping routes.”

Hickson said feedback from fertiliser suppliers was that autumn supply was largely covered, with sulphur appearing to be the nutrient most directly affected.

“Some shipments of elemental sulphur from the Middle East have been delayed or cancelled, including cargoes unable to pass through the Strait of Hormuz,” he said, adding suppliers were already working with farmers on alternatives.

By-election candidates thoughts

Local Democracy Reporting asked candidates in the upcoming Masterton by-election, many of whom were farmers, for their thoughts.

Wairarapa sheep and beef farmer Richard Johns expected fuel prices to rise.

“It’s an additional cost we will have to absorb to a point,” he said.

“It’s basically concern around what might happen after the current guaranteed fuel stock is finished.

“There are many things not in our control which could impact how the situation develops.

“I will panic very slowly at the moment. Hopefully the pace won’t quicken.”

Sheep and beef farmer Phil Engel agreed rising fuel costs would have to be absorbed into farming businesses.

He said current timing coincided with the tail end of the arable harvest, with any land planted in maize needing to be replanted before winter.

“There is still a huge demand for fuel.

“Pip fruit and stone fruit farmers will also be affected, as their crops become ripe for harvesting.

“We will tighten our belts to stay in business and limit our exposure to a commodity we 100% import refined, that we have no control of.”

Engel said questions needed to be asked about where the three months [fuel] storage was, and what happened to the Marsden Point refinery.

Former sheep and beef farmer John Hart lives on a large lifestyle block. He thought rising fertiliser costs were a real possibility.

“It could lead to food price increases if there is an impact on production,” he said.

“There are a lot of moving parts to this issue.

“We are seeing it already at the fuel pump with rising diesel costs.”

He said supply chain interruptions were also a possibility.

“There could be a lot of unforeseen shortages.

“There’s not a lot we can do as individuals to help prepare for unknown future consequences. Having a strong well-connected community is the best antidote to this sort of potential crisis.”

Tina Nixon lives on a lifestyle block near Masterton. She said the three Wairarapa councils –Carterton, Masterton and South Wairarapa – should collectively prioritise scenario planning and accelerate actions to reduce costs to ratepayers.

“Nothing should be off the table,” she said.

“In this time of uncertainty big expensive projects like the town hall should be put on the back burner unless it can be largely externally funded.

“It is not a time for nice to haves, it’s a time to focus on the bare essentials and to ready ourselves for global disruption and uncertainty.

“Times like this always make us think smarter and Wairarapa people are smart.”

She agreed fertiliser and fuel impacts could be significant, with strong local initiatives already under way to reduce possible supply and cost issues.

Lyn Riley agreed the region’s rural sector was vulnerable to fuel price hikes.

Rising diesel costs could quickly push up farm operating costs, potentially affecting other businesses and food prices, she said.

“Government should be looking seriously at measures like reducing fuel excise to ease the pressure,” Riley said.

“Otherwise, the outcome could mean reduced farm spending in towns like Masterton.”

Andrea Jackson lives on a lifestyle block.

“We see first-hand the challenges our rural community faces when fuel prices rise,” she said, adding with harvest under way price hikes were particularly impactful.

“Higher prices quickly add pressure to already tight margins.

“In a region where farming underpins much of the local economy, fuel price increases don’t just affect farmers – they affect the whole community.

“Rising freight costs also push up the price of goods moving in and out of the region, affecting both producers and consumers,” she said, adding the impact could increase over time.

LDR is local body journalism co-funded by RNZ and NZ On Air.