Farmers across Saskatchewan are heading into spring seeding facing a tough reality.
Much higher prices for fertilizer and diesel are putting significant pressure on already tight margins, caused in part by the conflict in the Middle East.
In many cases, crop prices, including on flax, wheat and lentils, are down significantly.
That squeeze could make this growing season especially challenging for some. It has many farmers are doing the math a little more carefully.
“That’s a huge cost to us. So, it’s worrying a lot of us,” said Larry Sommerfeld, who farms near Allan, Sask.
The increase is higher than some industry experts have seen in a very long time.
“I don’t recall seeing prices this high in probably at least 15 years,” said Kevin Genest,
For Kevin Genest, general manager of IAP Innovative Ag Performance Group, the costs break down like this.
Last year at this time, the price of diesel was around 96 cents per litre.
Get breaking National news
Get breaking Canada news delivered to your inbox as it happens so you won’t miss a trending story.
Right now, he puts that number for farmers closer to 1.55 a litre (as of early April), a 37 per cent increase. Urea fertilizer was $775 a metric ton last year. Currently, that number sits closer to 1,400 per metric ton, a 45 percent increase.
He says farmers who had a good year last year were able to pay their bills and buy their inputs early at those lower prices.
But those who waited and speculated a bit will be feeling the pinch, especially those with a lot of debt.
“If you bought a lot of land or bought a lot of new machinery, you may be having some struggles there,” Sommerfeld said.
Shaun Haney, CEO founder of Real Agriculture, said farmers are going to have to perform at an elite level this year.
“Making some decisions not only before but throughout the growing season, to really manage that crop budget to make sure that they either minimize the loss or maybe try to eke out some kind of profit,” said Haney.
He said his research finds 75% of farmers see more risk ahead this year than they did in 2025.
But Scott Hermus, who farms near Melfort, Saskatchewan, is feeling cautiously optimistic heading into the new season — even though he puts canola, one of the more expensive crops, in the ground.
He points to a shift earlier this year in trade negotiations.
“We had some breakthroughs with China. They were pulling the tariff back a little bit. And we’re in talks with India.”
But at the end of the day, he says a lot will come down to a variable that is completely out of their control anyway.
“The weather. If the weather co-operates. We will be profitable.”
