By Drew Spoelstra, President, Ontario Federation of Agriculture
If you’ve been following the news lately, you’ve likely seen headlines about global tensions driving up fertilizer prices and how that could potentially affect food prices later this year.
There are many unknowns about all this, which is why much of the coverage so far has been highly speculative. Stories suggest there might be shortages, prices could rise and farmers may face challenges later in the season.
So it’s important to take a step back and look at the situation with some perspective. My family and I farm in Binbrook near the City of Hamilton and I’m also the president of the Ontario Federation of Agriculture (OFA).
For Ontario farmers, fertilizer is a critical tool for growing crops and also one of the biggest costs of crop production. So when global events raise questions about fertilizer supply or pricing, we’re paying attention.
At the same time, farmers are used to navigating uncertainty. We plan months ahead for the growing season and constantly adjust to changing market conditions, weather and global developments.
That’s why, while the headlines may sound dramatic, the reality on most farms right now is much more measured. Across Ontario, farmers are watching the situation carefully, but they’re also doing what they always do: planning ahead, managing risk and making informed decisions for their businesses.
Many farmers have already secured at least a portion of their fertilizer supply for the spring planting season. Others are working closely with retailers and suppliers as they finalize their plans in the coming weeks.
An additional but equally important part of this story is the sudden rise in fuel costs that we’ve all been experiencing in recent weeks. This is a very direct and very immediate hit to expenses on the farm, and unlike many other sectors in the economy, farmers don’t have the ability to pass along these additional costs. That’s because we’re part of the global market place, which makes us price takers and not price setters.
What this conversation does highlight is a broader issue that farmers have been dealing with for several years now: volatility in the cost and availability of key inputs, which are the tools needed to grow crops like seeds, crop protection, fertilizer, and fuel.
Since the pandemic, farm businesses have been navigating a series of disruptions that have affected supply chains around the world. From fertilizer and fuel to machinery parts and labour, farmers have been managing rising costs and uncertainty across the entire production system.
Add in the growing complexity of global trade and tariff disputes, and it’s easy to see how quickly international events can ripple through the food system.
Fertilizer markets are a good example of how interconnected agriculture has become. Supply chains stretch across continents, and geopolitical events thousands of kilometres away can influence costs here at home.
That’s why stable supply chains and predictable input costs are so important for Canadian agriculture.
Farmers make major decisions months before a crop is harvested — often before a seed even goes into the ground. Access to reliable inputs like fertilizer allows farmers to plan with confidence, invest in their businesses and produce the food Canadians rely on every day.
At the Ontario Federation of Agriculture, we’re monitoring developments closely and staying in contact with industry and government partners. While there’s little any organization can do directly to influence global fertilizer prices or geopolitical events, there is an important role for farm organizations like OFA to play: ensuring farmers’ voices are heard and advocating for policies that strengthen our agricultural system over the long term.
That includes continued efforts to improve supply chain resilience, support domestic production capacity where possible and maintain strong risk management programs that help farmers navigate volatility.
It also means continuing to encourage the kind of planning and communication that modern business need, like working with suppliers early, staying informed about market conditions and making strategic decisions with the long-term view in mind.
Ontario farmers have proven time and again that they are resilient and adaptable. Whether it’s weather challenges, market fluctuations or global disruptions, farmers are constantly adjusting to keep producing the safe, high-quality food that Canadians depend on.
And at OFA, we’ll continue to monitor developments, advocate for farmers and work with our partners to ensure Ontario agriculture remains strong and competitive in an increasingly uncertain world.
For more information, contact:
Rachelle Kerr
Communications Coordinator
Ontario Federation of Agriculture
519-821-8883
[email protected]