Farmers Hit with Double Whammy as Diesel Prices Soar and Crop Quality Declines

Farmers in Saskatchewan are facing a double whammy as rising input expenses and declining crop quality due to wet harvest weather take their toll. The cost of diesel fuel has spiked, with dyed diesel for farm use now over $2.00 a litre, nearly double what it was a year ago.

A large combine can burn up to 80 litres of diesel per hour, resulting in a substantial fuel bill. For instance, a farm putting 200 separator hours on a combine would incur a diesel fuel cost of around $32,000. In addition to the high cost of diesel, propane and natural gas prices are also increasing due to the need for drying crops for safe storage.

Nitrogen fertilizer prices are on the rise, with urea prices currently in the $900 a tonne range and phosphate prices remaining high at around $1400 a tonne. The impact of these rising costs will likely be felt in grain prices, particularly for crops such as wheat, durum, barley, and oats that are more susceptible to weight and grade losses.