Mel Foster is one of the farmers who owns the Foster Family Farms in North Gower and said he got some bad news when he spoke to his suppliers late last fall about the price of fertilizers for the 2022 crop season. “Whatever amount we spent last year, they say it increases by one hundred percent,” Foster recalls. “If we spent $ 100,000 last year, we would spend $ 200,000 this year.” Rising prices could be attributed to factors including supply chain issues, production disruptions due to bad weather in the United States and China’s decision to cut exports to meet its own requirements, said Canada Fertilizer executive vice president Clyde Graham . Then there is the “deeply worrying” invasion of Ukraine, which Graham said also led to sanctions against Russian fertilizer exports. While western Canada is a net exporter of potash and nitrogen fertilizers, Ontario, Quebec and the Atlantic provinces import these products from Russia, Graham said, as it has been more cost-effective in the past. But with a 35 percent duty on some imports, it does not look so attractive right now, he said.

Diesel is also on the rise

Adding to the list of costs is the rising cost of diesel, which has also been affected by sanctions, said Keith Currie, vice president of the Canadian Farmers Association. As most farm vehicles run on diesel, production costs are expected to rise significantly this season, Currie said. Most farmers have their prices locked in the market, he added, and if they do not sell directly to consumers they can not increase the amount they charge to recoup the costs they incur. “If McDonald’s has a problem delivering fuel surcharges from truck companies, they will put more nickel in each hamburger to offset that cost,” Currie said. “We do not have this luxury. Our prices are already set.” A potash mine in Saskatchewan. While western Canada is a net exporter of fertilizers, farmers in Ontario and Quebec often get their fertilizers from Russia – but that may now change. (Guy Quenneville / CBC)
As for Foster, who sells directly to consumers, he is currently focusing on spring weather, crossing his fingers for early rains and hoping for a better crop than last year, when the area was hit by severe frost in late spring. Foster said he would like to keep prices for their fruits and vegetables stable, but predicts they will see a slight increase. Along with fertilizers and diesel, its labor costs are also on the rise, as the minimum wage was raised earlier this year. “With fertilizers, fuel prices and labor prices going up – these are our three main costs. I would think we should definitely increase [our prices] “if work increases again,” he said. “We are [also] depends on the weather. It’s a huge bet there. “I do not go to the casino, but I think I have enough gambling here on the farm.”