Agricultural pilots increase farmer fees to cover rising fuel and fertiliser costs

Agricultural pilots can use thousands of litres of fuel each week. Photo / Mark Mitchell

By Monique Steele of RNZ

Rising fuel and fertiliser costs due to the war in Iran are hitting agricultural aviators and farmers during one of the busiest times of year for applying fertiliser.

Autumn usually sees a flurry of fertiliser jobs for agricultural pilots, as applications could help pastures recover from dry summers and prepare for the cooler months to come.

Global prices for urea, ammonia and nitrogen-based fertilisers soared in the weeks following the beginning of the war in Iran in late February, as many of the ingredients are derived from the Middle East.

However, potash and phosphate fertiliser prices and supply were expected to remain relatively stable through autumn in New Zealand, major player Ravensdown told RNZ in early March.

Agricultural Aviation Association executive officer Tony Michelle said concerns over fertiliser pricing and supply would likely come later in the year.

But he said that, for fuel, the soaring costs came at the busiest time of year.

Agricultural pilots could use thousands of litres of fuel each week, especially during peak times, he said.

“Everybody’s a bit nervous,” Michelle said.

“In terms of the medium term, our biggest concern is that this is a critical time of year for ag operators and for farmers, in terms of fertiliser application in particular.”

He said most operators were now charging more to cover the cost increases.

“Pricing’s through the roof, and just like everybody in the community, we’re facing significant increases in fuel pricing, which operators have to be able to pass on to the end user.

“And most operators are doing that through either a fuel surcharge or increasing the hourly rates.

“It’s never an easy conversation.”

Michelle said he hoped agricultural aviators would be included as an essential service to primary production industries in the Government’s traffic-light alert system for managing fuel supply risks.

“We had to battle to be seen as an essential service during Covid, and we don’t want to see that happen again,” he said.

“This is an animal welfare issue, and government needs to keep that front of mind.”

Further details updated in the National Fuel Plan announced on Friday showed that, in a Level 3 scenario, if supply were to tighten, the Government would work to ensure fuel got to where it was most needed, including for hospitals, fire services and food supply chains.

It said the Government may consider introducing purchasing limits based on priority bands, with band B being economically-important services like food supply and primary production during time-critical periods.

Michelle said the agricultural aviation sector had come off the back of a significant downturn with improved positivity recently, but confidence was being dampened now.

“Well, I think regardless of when they smoke the peace pipe, the ongoing effects will continue for quite some time.”

Michelle said aviation was under significant cost pressures, already facing major import issues for parts and engines.

- RNZ