Soaring diesel prices squeeze already tight agriculture margins: Farm Credit Canada

Farm Credit Canada released a report highlighting how soaring diesel prices are straining the already thin profit margins of farmers. The organization projects that a 2,000-hectare canola farm in Saskatchewan could experience fuel costs rising between $68,000 and $106,000 in 2026. This projection comes after the national average price for diesel rose from $1.50 to $2.68 per litre per week, as reported by Natural Resources Canada.

The increased fuel costs are particularly impactful as moving freight by truck now accounts for 45 percent of their expenses. While the report acknowledges that rising diesel costs contribute to food inflation, it states that the full impact has not yet been felt in grocery prices. Farm Credit Canada, a Crown corporation, provides financial and advisory support to agriculture and agri-food industries.