Prairie farmers harvest crops against diesel prices 80% higher than last year
Wet spring delays, recent rain, and skyrocketing fuel costs have created a perfect storm for Canadian agriculture, with farmers losing money on average crops.
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Canadian farmers are harvesting crops at the worst possible time to pay for fuel. Diesel prices have soared to more than $2.75 per litre — more than 80 per cent higher than the roughly $1.50 per litre paid a year ago — just as harvest season demands the year's most intensive fuel consumption.
The timing compounds earlier weather disasters. A wet spring delayed seeding across much of the Prairies. Summer brought a bone-dry stretch that would have been welcome weeks earlier. Now, rainy conditions have returned during harvest, leaving fields muddy and crops deteriorating in the ground longer than usual.
"Farmers are fighting mud trying to get out on the fields," says Rick White, head of the Canadian Canola Growers Association. "The days are shorter, the sun is not as long in the sky and temperatures are cool, so when it does rain significantly, it takes a long time for it to dry out."
Stephen Vandervalk, a fourth-generation southern Alberta wheat grower and vice-president of the Wheat Growers Association, says crop quality has been neither great nor the worst he's seen. But the economics are grim. "This also was by far, with no comparison ever in history, the most expensive crop that farmers have put in the ground," Vandervalk says. "You get an average crop, you are losing money hand over fist. It's a pretty scary thought when your average isn't nearly good enough."
Industry groups report harvests well behind the average timing of recent years. The longer crops stay in fields, the greater the risk of quality deterioration. Global crude oil disruptions — from war in the Middle East and Ukrainian strikes on Russian energy infrastructure — have crimped supply and driven prices higher.
Bruce Burrows, executive director of Grain Growers of Canada, is pushing the federal government for a "targeted and temporary" per-litre fuel rebate. Keith Currie, who leads the Canadian Federation of Agriculture, framed the stakes plainly: "The reality is you either buy the fuel or you don't. And if you don't buy it, you don't have a crop."
By the numbers
How much higher are diesel prices now compared to a year ago?
Diesel prices have risen to more than $2.75 per litre, more than 80 per cent higher than the roughly $1.50 per litre paid a year ago.
What weather challenges have Prairie farmers faced this season?
A wet spring delayed seeding across much of the Prairies, followed by a bone-dry summer stretch. Rainy conditions have now returned during harvest, leaving fields muddy and crops deteriorating longer than usual.
What is Stephen Vandervalk's assessment of crop economics this year?
Stephen Vandervalk, a southern Alberta wheat grower, says this was the most expensive crop farmers have ever planted. Even with an average crop yield, farmers are losing money, making the situation economically unsustainable.
