Canadian farmers are heading to the fields to plant the 2022 crop, and the risks are great as they are under pressure and stakes to do their best to succeed this year's crops, with some saying these crops may find a place in the record books as "the most expensive ever".

At a family farm northeast of Calgary near Akme, Alberta, Suir already knows she will need a crop better than the average this year just to break even on demand.

All her input costs have risen since last year due to inflationary pressures, rising energy costs, and the war in Ukraine. The price of fertilizer is more than double what it was last year, and the cost of diesel used to run her farm equipment is twice what it was this time last year.

But getting this above-average crop can be a challenge. Last year, Suir's farm was severely affected by widespread drought that reduced crop yields across Western Canada, and there are already fears that this year may be another dry year.

She said, "Most farmers, including us, saw a 30 percent drop in our yields, so we need to be able to achieve really good returns this year to pay for that." "So we are worried."

But it’s not all bad news. While the cost of everything from seeds to herbicides to tractor tires has risen in 2022, crop prices have also increased. The Suir family, for example, grows wheat, barley, and canola — all commodities currently in high demand due to supply pressures caused by the Russian-Ukrainian war and the consequences of last year's drought.

John Dredger, from LeftField Commodity Research based in Manitoba, said, "There are a number of crops that have reached their highest levels ever, or near their highest levels. If you go back two years, the price of canola has nearly tripled. Wheat is higher than it has been in 20 years, and the price of corn has reached a record level. It's really comprehensive."

In fact, Dredger said crop prices are high enough that any farmer able to produce a "normal-sized" crop can make a significant profit. But in addition to dry conditions in Alberta, many farmers in Manitoba and eastern Saskatchewan face the opposite problem and have not even been able to get onto the land due to flooding and excess moisture.

Dredger said the acres planted by Canadian farmers this spring will not only be the most expensive ever, but in some ways, also the riskiest.

"For those farms lucky enough to harvest a normal or even better crop, it can be a great year. But there will be many farms for whom it now seems fraught with risk."

Korney Thissen — general manager of ADAMA Canada, a Winnipeg-based company selling crop protection products such as fungicides, herbicides, and insecticides — said some of these inputs have become more expensive and harder to find due to factors like COVID, as well as factory disruptions and shipping delays. But he added that the war in Ukraine is also driving up demand for these products, as farmers get the message that their work this year is more important than ever.

Thissen said, "High crop prices have changed farmers' economics regarding how much they invest in crop protection. With the really high prices we see now, it sends a message to farmers that the world really needs your crop, so you have to make it as big as possible. You need to spend more on fertilizers and herbicides to maximize those crops."

Thissen said the 2022 crop will likely be the most expensive crop ever grown in Canada, and there are high hopes for it.

He said, "For the individual farmer, there is definitely a chance to benefit from these high prices, but it is a bigger investment than before." "If the weather works against them and they have a poor crop, there is a fear of failure."

Thissen added, "For the world, to help ease concerns about food security, we really need Canada to produce a great crop this year." "If Canada's crop is not as strong as possible this year, it will worsen food security concerns."

Editing: Dima Abu Khair