Manitoba farmers face higher fertilizer and fuel costs as Strait of Hormuz conflict disrupts supplies
Manitoba grain farmers report rising fertilizer and fuel costs ahead of spring planting after disruptions to nitrogen, phosphorus and sulfur shipments through the Strait of Hormuz linked to the U.S.-Israeli war with Iran.
Manitoba farmers preparing for spring planting are confronting higher fertilizer costs after global price increases tied to disruptions in shipments through the Strait of Hormuz amid the U.S.-Israeli war with Iran.
The conflict has affected shipments of nitrogen, phosphorus and sulfur—primary inputs for fertilizers—creating supply uncertainty for Canadian growers and raising input prices ahead of the planting season.
Grain farmer Carl Stewart of Poplar Point said he was able to purchase fertilizer earlier and considers himself lucky. He called for the Strait of Hormuz to reopen as soon as possible and urged stronger local rail and port infrastructure to reduce the risk of future supply disruptions.
Fertilizer Canada issued guidance encouraging farmers to consult local agricultural retailers for the latest information on fertilizer supply. MNP crop services leader Stuart Person warned that high fertilizer and fuel prices could lead to a disappointing season and recommended that farmers work with agronomists to avoid overapplication of fertilizer.
In Southeast Manitoba, growers plan to shift acreage toward more corn and less wheat for the spring seeding. Andrew James, who farms with his brother in the Rural Municipality of Springfield, reported he locked in fertilizer prices in late October and noted urea moved from about $750 to $1,150 per tonne.
James said he spent just under $350,000 on fertilizer at the locked-in prices and estimates that buying fertilizer at current prices would add roughly $140,000 to that cost. He also expects fuel expenses to be about $40,000 higher this season and noted that while fertilizer must be applied within seasonal windows, fuel can be procured as needed.
Keystone Agriculture Producers president Jill Verway said fertilizer prices have doubled since the war began and stressed that fertilizer comprises a large share of crop production costs. Observers quoted in the report expect high fertilizer prices to persist even if the conflict ends.
The article includes a correction clarifying the reported urea price change, from $750 to $1,150 per tonne. The report is by Jura McIlraith with files from Chelsea Kemp and Michele McDougall.