Skyrocketing input costs, and at times a complete inability to source the gear needed, is threatening to wipe out many of the gains made by livestock producers over the past two years.
The annual rise in the cost of inputs has now started to outstrip the annual rise in many livestock prices.
Add in the severe labour shortage and the growth potential that remains from good seasonal conditions and record prices is fast being squashed.
This showed through in a major survey of livestock producer sentiment conducted by the country's largest digital agriculture marketplace, AuctionsPlus.
The report detailing the findings, called The Gavel 2022, highlights the gathering storm clouds that could wash away many of the gains experienced since the drought broke through large parts of the country in 2020.
The survey of 200 livestock producers from around the country found 89 per cent expect to have their business negatively impacted by inflation.
A total of 98pc expect increased costs will impact their business and 65pc reported they have been impacted by the labour market in the past year.
Despite this challenging backdrop, more than 80pc still agreed it was an exciting time to be in the game.
In addition to rising commodity prices, the surge in rural land prices has been fundamental to the optimism being felt throughout the country, the report said.
Chief economist with AuctionsPlus Tim McRae said the research could be summarised by saying most producers feel things are good but there are major issues to watch.
The survey was run before the threat of foot and mouth disease arriving in Australia was so prominent, so that could now be added to the top of the list of concerns, he said.
"Things turned so quickly when the drought broke and it really has been a golden run for the livestock industry," Mr McRae said.
"But this turn in the other direction is almost creeping up on us. The fear is it will be a case of 'where did all the money from the record prices go?'"
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Just as inputs, staff and innovations are reduced through drought periods, the current inflationary factors may have similar outcomes, the report warns.
With expectations for cattle prices to ease steadily into 2023, it seems very unlikely costs of production and staffing pressures will subside, it said.
Most producers believe their margins are about to be squeezed hard.
Australian Government economists put fertiliser prices at the highest they have been since 2008 - up 86pc annually for both urea and phosphate.
Meanwhile, the average June diesel price was up 54pc on the same time last year, the Australian Bureau of Agricultural and Resource Economics and Sciences has reported.
Mr McRae said just as concerning as the cost of inputs for producers was the uncertainty in delivery.
Delays in the arrival of goods and services had become commonplace and was curtailing operations - at times gear such as tags for marking was arriving too late for use and forcing jobs to be cancelled, he said.
"It's typically not make or break stuff but it is all adding up to decreased productivity," Mr McRae said.
"All this is disrupting the natural rhythm of farming and frustrating producers.
"Of course, these issues are being experienced right through all industries but the time-sensitive nature of ag makes it more confronting."