Input costs climb

Feb 17, 2023

Canadian grain producers will be spend more than ever to plant their crops this spring, says Canada’s largest farm lender.

According to its 2023 Farm Input Market Outlook, Farm Credit Canada projects that Canadian farmers will spend a record $23.1 billion on fertilizer, fuel, chemical and seed this year, making the 2023 grain and oilseeds crop “the most expensive ever planted in Canada.”

According to FCC estimates, the Canadian market for fertilizer, fuel, seed and chemical reached a record $21.8 billion in 2022, an increase of 26.1 percent over 2021.

Higher spending on crop inputs in 2022 was driven largely by price increases in fuel and farm fertilizer stemming from global supply chain problems and the war in Ukraine.

Spending on the four major inputs is projected to rise another 5.9 percent in 2023 to a record $23.1 billion, FCC added.

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