A Keystone Agricultural Producers survey of crop inputs found that all categories of fertilizer and fuel have jumped up in price since February.
In two months, fertilizer prices rose an average of 11.06 percent, while the cost of purple gasoline was up 13.4 percent. Diesel was 6.2 percent higher.
KAP did the two surveys in Manitoba to illustrate the increased cost of doing business, said president David Rolfe in a News release
news.
“Our survey shows that the basic costs of farming continue to rise at a rate that makes it increasingly difficult for farmers to be able to afford growing food,” he said.
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The April survey found that purple diesel was selling for as high as 89 cents per litre at one Winkler, Man., fuel retailer, and as low as 71.4 in Crystal City. Farm gasoline ranged from 91.7 cents per litre in Gladstone to 68.6 in Killarney.
Last year at the same time, the average prices for diesel and gasoline were 73.4 cents and 72 cents respectively, showing a rise of 6.1 and 13.1 percent.
Since April 1999, the cost of diesel has climbed 145.6 percent, up from 31.7 cents per litre.
The cost of fertilizer is also soaring, the survey found.
Dry 46-0-0 averaged $591 a tonne in April, up 120 percent since the same month in 1999 when it sold for $268 per tonne. Anhydrous 82-0-0 averaged $879 per tonne, up from $374 eight years ago.
“Our costs have grown at a much faster rate than any potential return from the marketplace, continuing the financial squeeze for the province’s farm families,” said Rolfe.
At the Manitoba farm organization’s annual meeting in January, delegates passed a resolution asking that the federal Competition Bureau investigate the price of fertilizer.
KAP said producers are seeing significantly cheaper anhydrous prices in North Dakota compared to Manitoba.
Doug Kuruc, president of the North Dakota Agricultural Association, said anhydrous ammonia is selling in the state for the equivalent of $550 Cdn a tonne, and many farmers are complaining of shortages and delays.
At Agricore United in Souris, Man., anhydrous ammonia is selling for $875 a tonne for the product only, and $925 for product and application.
Stan Wiebe, who farms 8,500 acres of grain and potatoes near MacGregor, Man., said that like any other business, farmers have to try to become more efficient to cope with the circumstances.
“We’ve got way more exciting things to think about than fuel prices,” he said. “We don’t have any choice. We can’t stop driving our tractors.”
Cutting back on tillage isn’t an option, Wiebe said, adding that the cropping system he has in place is already as efficient as possible.
“I don’t think anybody likes to do recreational tilling, so you have to only till when it’s necessary. And if it’s necessary, then you have to do it.”
Wiebe’s preference to buy fertilizer early in fall has paid off. He is using mainly liquid fertilizers, and he got them for better prices than he paid last year.
“Historically speaking, it’s a high price and we don’t like it because it robs the bottom line. But it’s still a very necessary investment and well worth the effort of putting it on,” Wiebe said.
