Spring is in the air across the Valley, and this means the start of another growing season for area farmers. For some, this is a period of optimism, when the potential for a productive year and exceptional yields serves as motivation to get back on the tractor and onto the field. But the price at the pump right now has others wishing they could extend their hibernation.
Jérémie Letellier, the president of the Fédération de l’UPA de la Montérégie, acknowledged that the conflict in Iran is already causing repercussions for area farmers. “It is the second time in four years that we have such a shock coming through,” he said, referring to the impacts on global markets sparked by the Russian invasion of Ukraine and the ongoing war.
At that time, the price of grain rose, which helped to mitigate the impacts. “We don’t have that element right now. The price of grain has gone up a little, but nothing compared to the rising costs of inputs,” he explained, while referring specifically to diesel fuel and fertilizer.
There is even more uncertainty around the supply and availability of fertilizer. Letellier explained that he usually likes to buy 60 to 70 per cent of his fertilizer in the fall and then wait to see how the price changes for the rest. “A lot of farmers like to wait until the last minute. Sometimes you can get good deals. This year will obviously not be that kind of year,” he said.
For Letellier, the worst-case scenario will see some farmers switching from corn to soybean production because it does not require as much fertilizer. “Farmers will go to great lengths to keep their rotation, but you have to be able to get your inputs,” he said.
These early challenges to the season could also be compounded by lower yields last year, after a wet spring that delayed planting was followed by a summer drought. “There might be a shortage of cash available for a lot of farmers at a time when fertilizer and diesel costs will be at an all-time high,” said Letellier, who suggests cash croppers like himself may be able to turn to the bank.
“But you can’t do that for four or five years in a row. Now, for the third straight year, it is looking like it might be a difficult one, at least where the cost of production is concerned,” he said. “So, there is a lot riding in the balance right now.”