Uncertainty changing cost structures quickly

Grain Farmers of Ontario CEO Crosby Devitt speaks to a crowd of farmers and others in the industry at the annual GFO March Classic last month. ~ Luke Edwards photo

By Luke Edwards

There’s never a good time for war, but for Ontario’s grain farmers, there might not be a worse time.

As farmers from across the province came to Niagara Falls to celebrate the industry with the Grain Farmers of Ontario March Classic, the situation on the other side of the globe was on the minds of many.

“The world is not easy right now,” said Trevor Jones, Ontario minister of agriculture, food and agribusiness.

With uncertainty surrounding the United States-Israel attack on Iran and subsequent closure of the Strait of Hormuz, global access to key products is under strain.

“Fertilizer is one of the clearest examples of challenges facing us right now,” said Crosby Devitt, CEO for GFO.

While rising gas prices catch many of the headlines, large volumes of nitrogen fertilizer pass through the strait. But with it closed, many farmers are feeling the pinch. Uncertainty changes cost structures quickly, Devitt said.

Still, outgoing chair Jeff Harrison said the organization is doing what it can to support Ontario grain farmers.

“We seek to solve problems and not politicize them,” he said.

Earlier this year the GFO rejoined its national counterpart, the Grain Growers of Canada, in a move Harrison said will strengthen their voice.

“We are always stronger together,” he said, adding national and international colleagues are their partners. In fact, Canada will be the host nation for the International Oilseed Producers’ Dialogue later this year.

Devitt and Harrison said they’ve been working with port cities and elsewhere to improve infrastructure capacity, which they say can help manage volatility.

“That flexibility matters when our market shifts,” Devitt said.

Still, they acknowledged the tough times farmers are facing.

“Farming is never easy, but it’s always worth it,” said Harrison.