Rising diesel costs 'pretty devastating,' Ontario farmers say

Rising diesel costs 'pretty devastating,' Ontario farmers say

Prices for corn, soy and cattle have already gone up, but fuel prices have risen more, some farmers say

Ontario farmers are looking for help as the cost of diesel hits record levels amid the war in Iran that has disrupted global crude oil shipments.

Jesse Kenwell runs a cash crop and cow-calf operation near Collingwood, Ont., and said diesel prices have been "pretty devastating."

While prices for corn, soy and cattle have gone up, fuel prices have gone up more, he said.

He uses diesel for pretty much every machine on his farm, from combines to tractors, which "run all the time."

Kenwell said he also does work for Mennonite communities, but that again relies on diesel to get his machines to and from those farms and he must cover the travel costs.

So he's cut back on that work because it's simply too expensive and he cannot cut back on anything else on his farm.

"They've been going up so much, so rapidly here, we've just cut way back in some places," Kenwell said. "We won't go to work just because of the fuel prices."

Natural Resources Canada data show the average cost of diesel across the country hit $2.75 per litre in mid-September, far surpassing the previous record of $2.25 in 2022 following Russia's invasion of Ukraine that led to a global supply crunch.

Provincial politicians gathered en masse Tuesday at the annual International Plowing Match and Rural Expo, which is being held this year in Walkerton, Ont.

Several farmers said they feel like the federal and provincial governments have forgotten about them, and are asking for help to lower operational costs as most farm equipment uses diesel as fuel.

"They don't seem to be wanting to help us," said Kyle Schuknecht, who runs a corn, wheat and soybean farm in Elmwood, Ont.

"It's been rough for the last few years ... doesn't look like it's getting any better."

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Gerard Grubb said diesel costs are unsustainable. The farmer from Bruce County said it used to cost $1,800 to fill his combine. He refills it every single day. That cost has now shot up to $2,800, increasing his annual diesel costs by several hundred thousand dollars.

"We either need more [money] for our food, or you're going to have a real problem now with the economy," Grubb said.

Premier Doug Ford said his government has done a lot to help farmers, including making a permanent cut to the gas and diesel tax that shaves off about five cents a litre.

The federal government has also cut the fuel excise tax, which it announced Tuesday would be extended until January.

"I am really, really pushing the federal government to continue doing their discount or tax cut on gas," Ford said at the plowing match.

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"They said they're going to cut it off in January. You can't cut it off in January. People are hurting. They need money in their pockets."

Ford said the province's $150-million risk management program will be boosted to $250 million next year to help farmers.