Regional Farm Income Hit Hard by Double Whammy of Rising Fuel and Fertilizer Costs

Farmers in the region are facing a double whammy as diesel prices have spiked, nearly doubling from last year. Dyed diesel for farm use is now over $2.00 a litre, which can add up quickly given the high usage rates of large combines. For example, a combine can burn 80 litres of diesel per hour, resulting in a massive fuel bill for farmers who put in long hours.

According to estimates, a combine that burns 200 separator hours would incur a diesel fuel bill of $32,000. This does not even account for the additional fuel used when traveling between fields or during times of soft ground and tough crops. Farmers are also facing increased costs for propane and natural gas as they attempt to dry crops for safe storage.

Meanwhile, nitrogen fertilizer prices are rising, with urea currently priced at around $900 a tonne after seeing a reset in the summer. Phosphate prices have remained high throughout, currently sitting at $1400 a tonne.