Ontario farmers are facing a financial squeeze as diesel costs have soared to unprecedented levels, and they're asking both federal and provincial governments for relief. The surge in fuel prices, triggered by the Iran war's disruption of global oil supplies, has hit farm operations hard, since most agricultural equipment runs on diesel.
According to Natural Resources Canada, the national average price for diesel reached $2.75 per litre in mid-September. That's well above the previous record of $2.25 per litre set in 2022, when Russia's invasion of Ukraine caused a worldwide supply crunch.
The issue took center stage at the annual International Plowing Match and Rural Expo, held this year in Walkerton, Ont., where provincial politicians turned out in large numbers. Several farmers at the event expressed frustration, saying they feel overlooked by both levels of government and urging action to bring down operational costs.
Premier Doug Ford responded by announcing that the province's risk management program, currently funded at $150 million, will increase to $250 million next year to support farmers.
The expo, which draws farmers and rural communities from across Ontario, provided a backdrop for these concerns as the agricultural sector grapples with rising input costs that could eventually affect food prices.
