A jump in fuel prices, unsettled spring weather and a forecast dry El Niño summer have left New Zealand's rural contractors facing an uncertain outlook at the start of their busiest season, Farmers Weekly NZ reports.

Rural Contractors NZ president Clinton Carroll said fuel had sat below NZ$3 a litre for months before rising more than 20 cents for petrol and more than 30 cents a litre for diesel in recent weeks, with signs of further increases. Contractors added fuel surcharges when prices spiked last year and most have kept them. "It's a pain and we hate doing it. At the end of the day, it will be put onto the farmer who is the end user unfortunately," he said.

The last time fuel reached this level, large contractors burning 100-150 litres an hour paid an extra NZ$60,000-70,000 a week at peak times, Carroll said. The cost also flows into other inputs such as fertiliser, and contractors are planning jobs to be as efficient as possible.

A likely very dry summer means farmers in areas such as the East Coast will want feed crops, but rising costs make it harder to decide how much to plant. Carroll urged farmers, contractors and merchant representatives to talk early. Strong sheep, beef and dairy returns should keep demand for planting summer feed and making silage, but arable farmers are weighing options: "I've got a couple of clients who are pulling right back on their arable and going to just do sheep."

Photo: Paora / Wikimedia Commons (CC BY-SA 4.0)

Source: Farmers Weekly NZ