Farmers in Prince Edward Island are preparing for higher fertilizer costs as global supply pressure increases. A colder spring has delayed field progress, with winter wheat reaching a stage where nitrogen application is required.
"It's my number one cost," said Alan Miller, a grower and science co-ordinator with the Atlantic Grains Council, adding that prices are expected to rise as supply disruptions affect the market.
The Atlantic Grains Council warned of a "rapidly deteriorating" fertilizer situation ahead of planting. Supply pressure is linked to disruptions in the Persian Gulf, where production has been affected, and the Strait of Hormuz handles about 30 per cent of global fertilizer trade.
The situation is also affected by tariffs on fertilizer imports from Russia and Belarus. The council said Canadian farmers have "effectively lost access to nearly half of the global nitrogen fertilizer supply" before planting.
"Farmers either are going to struggle to find fertilizer, number one, or number two, be able to afford it," Miller said.
Short-term supply in Prince Edward Island remains stable, as importers secured product earlier. However, increases are expected later in the year.
Higher input costs are already being reported in other regions. Fen Hampson, co-chair of the Expert Group on Canada-U.S. Relations, said prices have risen by around 30 per cent in some areas.
He said supply disruptions have created an energy, fertilizer, and food cost environment, with recovery likely to take time even if conditions improve.
Higher production costs are expected to pass through the supply chain. Hampson said vegetables and greenhouse products could be affected if fertilizer costs remain elevated.
On-farm costs are also increasing beyond fertilizer. Miller said diesel costs are around US$800 to fill a tractor for approximately one and a half days of fieldwork, with transport costs also rising.
"It hurts my bottom line," Miller said. "It will be a struggle to break even."
Source: CTV News
