P.E.I. farmers struggle to plan ahead as fertilizer costs double
Russia a major exporter of some fertilizer nutrients, sanctions causing shortage
Farmers on P.E.I. will be paying more to get their crops started this year as the cost of fertilizer skyrockets.
Russia is a leading producer of some of the nutrients that go into mineral rich fertilizer needed to produce commercial-sized yields on the Island.
"We've seen the cost of potash go from around $570 in the fall last year ... per tonne, upwards of $1,300 dollars per tonne now," said Donald Killorn, executive director of the P.E.I. Federation of Agriculture.
Russia is the leading producer of potash, which adds potassium to fertilizers, and also a leading producer of urea, which is used to add nutrients to fertilizers, Killorn said.
"There's no end in sight. They continue to climb in price today. So, you know, next year's crop is on track to be even more expensive than this year's."
The Russian invasion of Ukraine and the resulting sanctions put on Russia for its actions have resulted in a shortage.
Killorn said with the cost of production going up, the cost of food will also go up, with price increases being passed on to the consumer.
Dale Hickox grows vegetables at his farm in Vernon River. He said the cost of fertilizer is putting financial strain on him and other farmers.
"I haven't got all my fertilizer numbers confirmed yet, but it looks like ... pretty close to double for most blends that I typically use," he said.
"The high input costs are going to be extremely tough on everybody this particular season. Whether the marketplace is going to give us what we're going to need because of the additional input costs, I'm sure that most people are a little unsure of that."
Suppliers who are seeing a shortage are looking at alternatives to Russian exports.
Andrew Robinson is the general manager of P.E.I. Agromart, which supplies fertilizer to various Island farms.
"We as a company do not support sourcing fertilizer from Russia going forward given its invasion of Ukraine and we will certainly be looking for alternative sources of supply that we feel are ethical sources of production," he said.
Robinson said Canada has potash and the company uses a Canadian supply, but Russia also produces minerals that put nitrate and phosphorus into fertilizers. Robinson said in recent years many companies have been sourcing phosphorus from the United States.
"The biggest vulnerability is on nitrogen fertilizer, which Russia is a main producer as is China, but China has an internal export ban on fertilizer just to protect it for their own domestic use," he said.
"Just since the Russian invasion of Ukraine, global prices have gone up $200 to $400 per tonne plus additional challenges and costs around logistics and freight."
Robinson has worked in the industry for over 20 years and hasn't seen costs rise in the agriculture industry so fast, he said.