Rising diesel prices latest hurdle for Alberta farmers

Alberta farmers — already coping with soaring feed, fertilizer and pesticide costs — are now bracing for another hit to their bottom line: a surge in diesel prices.

Diesel is an important farm fuel, used by a wide variety of agricultural equipment. This is also one of the busiest times on the agriculture calendar with spring seeding.

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But a jump in the price of diesel is making the work much more costly than usual.

Greg Sears, whose family farm is located just north of Grande Prairie, Alta., said his fuel costs have roughly doubled from this time last year. That will probably add about $50,000 in costs, he said.

"We're seeing it affect every part of our operation, not just the fuel we consume on the farm, but anything and everything that is shipped to us or shipped from us — we're seeing increases in those costs."

The hope is that the increased costs will be balanced out with a good crop and respectable prices, but there are few guarantees in the farming business.

Diesel prices have been climbing for the past year but have jumped significantly recently.

According to data collected by GasBuddy, the average price of diesel at Calgary gas stations was around $1.50 a litre in early March. On Monday, the price was around $1.88 per litre. A year ago, it was around $1.20 per litre. 

Alberta farmers do get some relief from those prices.

Sears, chair of the Alberta Wheat Commission, said fuel used for farm equipment and trucks is exempt from provincial fuel tax, worth nine cents per litre.  It's also not subject to carbon tax, Sears said. 

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But even with those programs, there's no easy way to keep a lid on costs.

"We have probably rarely seen above $1 a litre for our farm fuel," Sears said in an interview Friday.  "I think the last tank I bought was $1.50 a litre."

That comes on top of other steep cost hikes farmers are experiencing.