We get it, its not easy. As Canadian farmers approach 2026, profitability isn’t guaranteed. Elevated input prices and narrowing crop margins pose a challenge, as do tariffs and political instability. Still, strategic planning, smart investments, and access to government programs can strengthen operations and income. Here’s how to set your farm up for success this year.
1. Tame Soaring Input Costs
Federal estimates suggest Canadian farmers will spend approximately CAD 22.5 billion on crop inputs in 2026, rivaling record highs from 2022. Fertilizer remains the largest expense—forecasted at nearly CAD 10 billion—with prices still trending upward despite slight fuel cost relief.
Delay fertilizer purchases when possible, or lock in mid-season pricing if market dips occur. Consider split applications and variable-rate technology to optimize usage. (Subscribe to the Farms.com Risk Management Newsletter for advice on when to lock in prices.)
2. Drill Deep into Field-Level Profitability
Input costs will impact every field differently. Break down your financials by field or farm unit to identify the most and least profitable areas. Consider redirecting resources from low-margin parcels or fields to top performers.
3. Embrace Precision Agriculture and Tech
When markets bite, efficiency is everything. GPS-guided equipment, soil sensors, and variable-rate tools help optimize seed, fertilizer, and pesticide use—boosting yield while reducing input waste.
There are now several aftermarket precision ag tools that can be used with existing equipment. (Subscribe to the quarterly Farms.com Precision Ag Digital Digest.)
4. Create a Dynamic Budget & Cash Flow Plan
Static yearly budgets fall short amid volatile markets. Instead, build a flexible financial model that adjusts with real-time input prices, yields, and equipment needs.
Monitor finance metrics weekly, not just seasonally—especially around purchase and insurance decision points. (Subscribe to the Farms.com Risk Management Newsletter for advice on when to lock in prices.)
5. Tap Into Grants, Cost-Share Programs & Loans
Canada offers over CAD 2.3 billion annually through federal and provincial agriculture programs. Explore these options:
- Sustainable Canadian Agricultural Partnership (SCAP): Supports innovation, sustainability, and risk management initiatives.
- Provincial grants: Including Ontario’s funding for food-safety infrastructure and B.C.'s Peace-region grants up to CAD 50,000 for farming improvements.
- Alberta's Farm Debt Mediation Service: Offers financial counseling and mediation for farmers facing financial difficulties.
- Saskatchewan's Farm and Ranch Water Infrastructure Program (FRWIP): Provides funding for water infrastructure to help producers manage water resources. Animal Health and Biosecurity Program: Offers support for animal health initiatives.
6. Mitigate Risk with Insurance & Market Tools
Build resilience against trade uncertainty (e.g., tariffs on canola and pulses), weather variability, and price volatility, all of which loom large in 2026.
Use Business Risk Management (BRM) programs, forward contracts, and crop insurance(subscribe to the Farms.com Risk Management Newsletter for advice on when to lock in prices). Consider diversification across crop types and rotations.
8. Benchmark and Collaborate
Peer networks, co-operatives, and agri-business groups provide invaluable insights and shared learning. It may sound counter-intuitive, but this may be the year to invest in attending appropriate agriculture to help build knowledge and networking.
Facing tight margins and high input costs, Canadian farmers must operate with precision and foresight in 2026. By optimizing field profitability, leveraging grants and technology, and strengthening financial management and risk tools, farms can thrive—even in a challenging environment. Are you ready to cultivate stronger profits this season?