Southeastern Manitoba farmers are facing extra strain ahead of the spring planting season as fertilizer and fuel prices surge due to the escalating conflict in the Middle East.
Randolph-based farmer Kevin Peters is watching the price turmoil closely. He plants rye, canola, wheat, soybeans, corn and sunflowers on his 7,500 acres. Peters locked in pricing for his year-long fertilizer supply in November and considers himself lucky.
“There’s always concern about geopolitical issues.” he told The Carillon. “Whether it has to do with trade or, in this case, fertilizer supply…it can really affect imports and exports for a lot of things.”
The United States and Israeli attacks on Iran began Feb. 28, striking multiple targets throughout the middle eastern nation and killing its Supreme leader Ali Khamenei. Iranian military personnel retaliated, launching missiles and drones at neighbouring nations and vessels passing through the Strait of Hormuz, which flows between Oman, the United Arab Emirates and Iran, grinding the shipping lane to a halt. The New York Times reported on March 25 at least 17 ships have been struck since the conflict began.
Spring planting often brings a bump in fuel usage for Peters, and he was tipped off by his fuel supplier to stock up before the price spiked further. Peters filled his 12,000 litre fuel storage at $1.30/L on March 6.
A good harvest last year has afforded him some reserves, but margins are still tight as expenses such as fuel and fertilizer aren’t showing signs in decreasing soon.
“Things are challenging and things are sometimes a bit tough. But at the end of the day, I think we (farmers) all love what we do and and take pride in producing, you know, good, clean food,” he said.
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