Canada Bails Out Farmers As Fuel And Fertilizer Costs Rise

2026-03-24 03:14:08

(MENAFN- Yolo Wire) Canada's federal government in Ottawa is offering ‌financial aid to farmers across the country as prices rise sharply for input costs such as fuel and fertilizer due to the war in Iran.

Farm Credit Canada, a federal government program, is offering a new or additional credit line ‌of up to ⁠$500,000 to farmers and also deferring principal payments on existing loans.

The additional ⁠money is coming from an expansion of the Trade Disruption Customer Support Program, which was introduced in March 2025 to help farmers hurt by U.S. tariffs.

It will now provide support to help producers and agribusinesses "manage financial pressures caused by unexpected market shocks," said Farm Credit Canada in a news release.

Fertilizer and fuel prices have soared by as much as 30% since the ‌Iran war began on Feb. 28 and led to the closure of the Strait of Hormuz, ‌where 20% of the world's crude oil is shipped.

As a result, farmers across Canada have been hit with price shocks and are struggling financially as the spring planting season fast approaches.

Leading Canadian agriculture companies include Nutrien (NYSE: $NTR), Ag Growth (TSX: $AFN), and Maple Leaf Foods (TSX: $MFI).

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