Diesel shortage could become a critical factor.

"There have been some fuel suppliers who have called me over the last month expressing their concerns," Mr Weidemann said.

Mr Weidemann said there has been an upswing in demand of fuel.

"We've got concerns around the fact that Australia's only got two refineries," he said.

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"We've been calling for more fuel storage in Australia to secure our supply for agriculture in particular because, at this stage, we've up to three days of use should there be extreme circumstances."

In Australia there should be 90 days of fuel reserve.

"We hold about 30 days now," Mr Weidemann said.

"The government has recognised that.

"There have been some schemes where they look at building building large central thanks to try and increase it, but we need to continue to increase fuel storage to ensure we have security of supply."

Mr Weidemann said demand, and the price of oil are factors in fuel scarcity.

"It's about $85 a barrel now instead of about $40 a barrel," he said.

"We've got demand and we've got to pick up that capacity and supply and of course, the raw material is going up in price."

Another huge factor is shipping freights which is "affecting everything," Mr Weidemann said.

"Everything that's freighted to Australia or being sent out of Australia at the moment, is having a impact on fuel," he said.

"The demand will continue to go up as airlines start flying again and as shipping starts to build up again."

The bottom line is that is will impact the cost of farming.

"Also, people who are travelling, it will impact dramatically," Mr Weidemann said.

Mr Weidemann advised farmers to continue to monitor the situation.

"Keep talking to your fuel supplier," he said.

"We don't want to see a run on the market and driving up extra costs.

"The reality is that farmers are going to need fuel to get this years harvest off and running."

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