Record Diesel Costs Squeeze Ontario Farmers

Ontario farmers are warning that record-high diesel costs are becoming unsustainable, according to reporting from CBC Toronto and Global News. Natural Resources Canada data indicates the national average for diesel reached $2.75 per litre in mid-September, surpassing the previous 2022 record of $2.25. The price surge follows disruptions to global crude oil shipments caused by the war in Iran.

Speaking at the International Plowing Match and Rural Expo in Walkerton, Ont., farmers detailed the impact on operational costs. Gerard Grubb, a farmer from Bruce County, told CBC Toronto that filling his combine now costs $2,800, up from $1,800, adding several hundred thousand dollars to his annual expenses. Jesse Kenwell, who operates a cow-calf and cash crop business near Collingwood, Ont., noted that while cattle, soy, and corn prices have risen, fuel costs have increased more rapidly. Kenwell said he has had to cut back on work for Mennonite communities because travel costs are too expensive.

Kyle Schuknecht, who farms soybean, wheat, and corn in Elmwood, Ont., said producers feel forgotten by federal and provincial leaders. In response, Ontario Premier Doug Ford stated his government implemented a permanent gas and diesel tax cut of approximately five cents per litre. Ford also announced the province's risk management program will increase from $150 million to $250 million next year.

Additionally, the federal government announced Tuesday it would extend a fuel excise tax cut until January. Premier Ford has urged the federal government to extend this discount further, stating that people are hurting and cannot afford for the cut to end in January.