Farmers are always investing heavily despite the fact they may not have a successful season.
“Every year farmers invest significant financial resources in their crops,” says Mark Brock, Chair of Grain Farmers of Ontario in a May 25 release. “At this time of year, our expenses are high and turning a profit at harvest is never a guarantee. It’s not uncommon for a farmer to spend several hundred thousand dollars just to get their crops started.”
Brock also noted that the inputs only cover a portion of the total costs a farmer has to navigate.
“There is a lot of risk, both environmental and financial, in grain farming,” says Brock. “Input costs are just one part of it – there are also labour costs, research and administration time, equipment maintenance and repairs, and a lot of personal energy spent on the land and crops.”