Skyrocketing fertilizer, fuel prices from Middle East conflict leaves farmers frustrated

Jeremy Neufeld pities the farmers that still need to buy fertilizer for their crop.

“We were lucky enough to pre-buy in the fall, and so we’ll be all right this year,” he said. “But I wouldn’t want to be the guy buying fertilizer this year.”

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Global fertilizer prices are climbing after a major shipping route in the Middle East was closed due to the war.

Neufeld, whose operation is about 30 kilometres south of Swift Current, said fertilizer prices are “atrocious.”

A third of the world’s fertilizer sails through the Strait of Hormuz between Iran and United Arab Emirates. There’s no indication on when the shipping route will re-open.

The surging fertilizer prices are another hit to Larry Bryck’s bottom line at his farm near Ituna.

“Basically in the past, fertilizer prices used to always follow grain prices,” he said. “As (fertilizer) went up, (grain prices) went up, but this time grain prices went down and fertilizer prices are still up – in fact, going higher.”

Pam Krusky is concerned fertilizer might be hard to get, depending on how long the shipping route is closed.

“I actually haven’t purchased any fertilizer yet,” she said. “I have some booked.

“This is the first year I’ve ever had to contract fertilizer because they say there’s going to be a shortage.”

Krusky said part of the problem is trying to figure out where to put the fertilizer at her farm near Coronach on such short notice.

Surging oil prices “going to hurt” farmers fueling machinery for seeding

Producers don’t know what sort of fuel costs they will face once the machinery rolls into the field this spring.

Krusky said she isn’t sure how big the bill for gas and diesel will be yet, with conflict in the Middle East driving volatility in oil prices.

Oil prices have been unpredictable since Israel and the United States first launched attacks on Iran. (Lisa Schick/ 980 CJME)

“It’s so hard to keep your head above water … right now, the cattle is saving our grain operation,” she said.

Larry Sommerfeld, the Reeve of the RM of Lost River southeast of Saskatoon, said farmers can’t control what’s happening in the world and how it affects oil prices.

“We bear it, as hard as it is, as painful as it is,” he said. “But we also are very optimistic that (grain) prices will rise with it and we will be able to survive that.”

If grain prices and fuel prices stay in line with each other, Sommerfeld hopes farmers will be able to afford it.

For the meantime, he hopes it’s short term pain.

“It’s going to hurt quite a bit,” Sommerfeld said.

Consumers could take the brunt of extra trucking fuel costs

Susan Ewart, the executive director of the Saskatchewan Trucking Association, said rising diesel prices means more expenses for drivers.

“Those fuel costs you end up getting pushed back over to the consumer,” she said. “Ultimately, it’s you and I that pay for that.”

Ewart said fuel is one of the top three costs trucking companies face.

“There definitely is going to be more conversation happening about what can we do to drive some of those costs down,” she said.

Ewart wants to see truckers temperature controlled trailers be able to use dyed diesel, because the tax is less on it.