Chemical distributors are expecting another sharp increase in fertiliser prices.
Global prices for di-ammonium phosphate have risen more than $US100 a tonne since November to more than $US600 a tonne.
Fertiliser companies here in Australia are not yet quoting prices for this season.
But western Victorian distributor Geoff Robertson says some commonly-used fertilisers may sell for more than $AU1100 a tonne.
"The big issue is that we are seeing a new pricing regime for not only farm fertiliser inputs but a lot of other cropping inputs and with the increase in fuel prices farmers are really going to have to look at their bottom line," he says.
"Unfortunately it worries me we're going to see another round of farmers leave the industry to the further detriment of rural Australia."
While some farmers may be forced out by the high prices, others are likely to sow less crop this year, despite high grain prices.
As well as fertiliser, strong international demand has pushed herbicide prices to unprecedented levels.
Field crop consultant Michael Wurst says farmers are already thinking about how to manage this season.
"There are already some farmers looking at that," he says.
"They're sort of weighing up do I outlay all that money to put a crop in or am I better off just to do a lower risk strategy and perhaps just run more livestock".
