As Canadian farmers prepare to sow the 2023 crop, which may go down in history as “the most expensive ever,” the stakes have never been higher in terms of agriculture. Canadian farmers say that inflationary pressures, rising energy prices, and the conflict in Ukraine have all contributed to a sharp increase in the cost of all farm inputs over the past year. Fertilizer is more than twice as expensive as it was this time last year, and diesel to power farming machinery is nearly twice as expensive. It may not be easy, though, to harvest above-average yields. Many farms in Western Canada suffered losses because of the severe drought that plagued the region last year, and this year’s crop yields have already sparked concerns about another dry growing season. Most farmers suffered a 30% drop in yields, so they need this year’s harvest to be exceptional to cover their expenses. However, severe drought is already a problem in many areas. However, not all is bleak. Crop prices have risen in tandem with the rising cost of inputs such as seeds, pesticides, and even tractor tires. A variety of crops are at or near record highs, according to LeftField Commodity Research’s Jon Driedger (who is headquartered in Manitoba). If you look back two years, the price of Canola has increased by two or three. In the last 20 years, wheat has reached an all-time high, and corn has come close to setting a record high. It applies to pretty much everyone. Current crop prices mean that even a “normal-sized” harvest will still net a respectable return for any diligent farmer. However, many farmers in Manitoba and eastern Saskatchewan haven’t even been able to go onto the land yet because of flooding and extra moisture, so the situation isn’t all bad for Alberta. The riskiest time for Canadian farmers to seed their fields will be the spring. It might be a good year for farms if they have an average or above-average harvest. There are many farms that are looking bleak right now. When asked about the rising cost and scarcity of specific crop protection inputs, ADAMA Canada’s general manager, Cornie Thiessen, cited supply side problems like COVID-driven interruptions at production facilities and shipping delays. The farmers are getting the message that their labor is more important than ever this year because of the rising demand brought on by the situation in Ukraine. High crop prices alter the economics of farmers investing in crop protection, as stated by Thiessen. When prices are as high as they are now, it tells farmers that their output must meet global demand. You need to invest more in fertilizer and pesticides if you want higher yields. The crop planted in 2023 is predicted to be the most expensive in Canadian history, and a lot depends on it. Individual farmers can benefit from the current price surge, but doing so will require a more considerable financial outlay than in the past. They may have a poor harvest because of the bad weather. Canada must have a bumper harvest this year for its own sake and to assist global food security concerns. Concerns about food security will only increase if Canada’s crop isn’t as robust as it could be this year.