Skyrocketing fertilizer costs create challenges for farmers

By Isabel Buckmaster

Local Journalism Initiative, GuelphToday

WELLINGTON COUNTY – Ongoing conflicts in the Middle East and Russia have left local farmers grappling with higher fertilizer and diesel costs.

Wellington Federation of Agriculture (WFA) president Barclay Nap said Wellington County farmers, much like their counterparts across the country, have reported skyrocketing costs over the last few months.

Nap said the increases are largely spurred by the war in Iran, which has resulted in the closure of the Strait of Hormuz, through which a lot of raw materials for diesel fuel and nitrogen fertilizer are shipped.

“Even though there is periodic conflict in the Middle East, this one is a bit more important to watch ... The ripple effect has already affected prices for these input goods,” said Nap.

But what does that mean for local farmers and consumers?

At her dairy farm, Harrcroft Acres, northwest of Fergus, former WFA president Janet Harrop said she’s noticed the price of nitrogen-based fertilizer has almost doubled in the last six months.

Harrop, whose farm currently grows about 350 acres of crops, said that presents a challenge, as nitrogen is required to grow crops like wheat and corn, which her farm uses to feed its dairy herd.

“We locked in a price in December, but those that haven’t are going to have quite a shock when they go to buy nitrogen fertilizer come planting time,” said Harrop.

While her farm had the means to plan ahead, Harrop said she’s concerned for others that don’t have the storage capacity and are forced to wait until spring.

“The concern is that the supply may not be there,” said Harrop.

Fourth-generation farmer Greg Hannam is in a similar boat. Currently growing corn, wheat and soybeans on a few thousand acres in Guelph/Eramosa, Hannam said he’s noticed the cost of nitrogen fertilizer has gone up “quite a bit” since the start of the year.

“Unfortunately, prices were already high, and supply was already limited coming into Canada because of other geopolitical things like the war in Ukraine ... and now with the movement in the Middle East, it’s affecting supply,” said Hannam.

As a result, he added, farmers may have to minimize fertilizer use, which can ultimately reduce yield.

Others may choose to switch out corn for crops like soybeans, which can obtain their own nitrogen, said Hannam.

However, this can be difficult if a farmer has already purchased seed for the year, he added, which can also impact the next three or four years of production.

“We’ve had fertilizer prices this high before … but this is different from what it was five years ago,” said Hannam. 

“There will be some tough times in the farming community over the next growing season.”

Diesel prices also pose a problem, said Harrop, whose farm goes through a tank of diesel per week when doing heavy field work.

She said the cost last week to fill the tank of one of their farm vehicles was almost double what it was previously.

“Most farms may only have a tank or two of diesel fuel, but not a lot, and the majority of our equipment depends on diesel fuel, so we really have no option,” said Harrop.

“When you get equipment of a certain size and horsepower, the only thing they can run on is diesel fuel.”

Hannam said consumers are already feeling the effects of increased fuel charges, while the increased cost of fertilizer is anticipated to trickle down to consumers in the form of higher grocery prices over the next year. 

“These increased costs don’t mean that much yet because the stuff they’re buying now is the stuff we made last year,” said Hannam. 

“So, 12 months from now, the product going into manufacturing is going to be stuff that was made with higher input costs.”