Farmers Name Inflation as Top Challenge

A Roy Morgan survey finds inflation and input costs are now the biggest concern for Australian farmers, ahead of weather.

Updated on Nov. 10, 2026 in Agriculture

Live Poll

Do you think the cost of living where you live is getting worse?

A Roy Morgan survey of 1,110 Australian farmers found 48% named inflation and input costs as a top challenge, up 18 percentage points from a year earlier. Fifty-nine per cent said their farming business is worse off financially than a year ago.

Why it matters

The 48% figure is the highest any challenge has recorded in the survey's five-year history, signalling that cost pressures are now weighing more heavily on farm operations than weather. Agribusiness confidence has been below neutral since mid-2022, with the June quarter of 2026 marking its lowest point in at least 15 years.

Fuel and fuel supply costs were cited by 18% of farmers, up 16 percentage points from 2% in 2025, while fertiliser costs were cited by 8%, up from 2%. Queensland farmers were the most pessimistic, with 73% saying their business is worse off financially.

The players

Roy Morgan

Roy Morgan is an Australian market research company that runs ongoing consumer and business confidence surveys, including its agribusiness confidence measure.

The details

Farmers were asked in their own words to describe their biggest challenges during July and August 2026. Weather was named by 24%, economic uncertainty and government policy by 21% each, and staffing issues by 12%.

Agribusiness confidence has been below neutral since mid-2022.
Survey interviews were conducted online in July and August 2026.
The June quarter of 2026 recorded agribusiness confidence's lowest point in at least 15 years.
The three-month rolling average business confidence reading to October 2026 was 63.7.

Spending
Nov. 10
Consumer Sentiment Slides to Lowest Since 2022
Inflation
Oct. 29
Australia Inflation Rises to 4.3 Per Cent
Inflation
Oct. 20
Reserve Bank to Consider November Rate Hike

Market Landscape

Agribusiness confidence has sat below the neutral level of 100 since mid-2022, according to Roy Morgan's ongoing survey series. The latest reading of 63.7 reflects a sector that has little room left to fall, with the decline described as a floor effect.

Rising fuel and fertiliser costs are squeezing farm budgets, which can flow through to food production costs over time. Farmers in Queensland report the sharpest financial pressure of any state.

The takeaway

Input cost pressure has overtaken weather as the main worry for Australian farmers, making fuel and fertiliser prices a key factor to watch in the months ahead. Farm businesses that track these costs closely are better placed to plan for the year ahead.