Sometimes, I wonder why the price goes up.

Many years ago (maybe 35), farmers were advised by farm supply companies to order their fertilizer early to ensure they would get it. Many farmers shopped early to make sure they wouldn’t run out at seeding time. Then the price of fertilizer began to creep up. Although potash was mined in Canada, most phosphorus came from Florida, and nitrogen was made from air, with a lot of electricity, but there were only a few companies that sold fertilizer and blends for specific crops. By the time the snow went away that spring, chemical fertilizer prices had skyrocketed. As the price increased, some farmers became very worried about getting the fertilizer they needed for spring cropping.

I remember attending the spring meeting of the farmers’ union in Quebec City on the morning that some fertilizer had risen to more than a thousand dollars per tonne. Then, about 10 a.m., three shiploads of fertilizer from Russia arrived at Churchill, Manitoba. By noon, the price of fertilizer had dropped by half. Those three ship loads were not coming to the regular fertilizer suppliers. The farmers who had not pre-ordered their fertilizer had just saved more money than the crop might bring in the fall.

Not many years after, prices of farm chemicals used to control weeds began rising quickly. A favourite corn herbicide had doubled in price from the previous year. Then, a shipment of that herbicide arrived from another supplier in another country that sold for half the price. Suddenly, the price of that herbicide came down to the same price as the newly arrived herbicide.

Probably not many of our consumers knew about the “lysine scandal.” Lysine is one of the 14 essential amino acids in the diets of many animals, including humans. Lysine is necessary in pig feed to assure efficient feed conversion and animal health. There used to be seven important grain traders in the entire world (now there are only four – big guys buy up little guys). One of the seven, was caught working with Japan to fix the price of lysine. Because it is so important to have in pig feed, every pig feed supplier continued to add lysine regardless of the price. The increased price of lysine effectively raised the price of pork in the store more than you want to know. After the U.S.A. took that feed trader and Japan to court, the largest fine ever paid to that date was collected from those two price fixers. Yes, the price of pork went down shortly after.

Now, I wonder if tariff wars are being blamed for escalating food prices. Ever since the U.S. began charging tariffs on U.S. imports from China, and China stopped importing many U.S. grains such as wheat, some corn and soybeans, along with Canadian canola, the prices of many grains that are used extensively for animal feed have decreased. In Canada, farm gate milk price has dropped slightly. Egg, pork, and beef price should soon decrease some. Grain is also a huge contributor to the price of bread and cereal. Farmers are being told that grain prices are down, but have the consumers noticed any drop in food prices?

I often sit in the car while “the better half” shops. I began counting vehicles to see what people drive. The half-ton trucks and mini vans are usually domestic, but a very large percentage of the vehicles in those parking lots are what we used to call foreign cars. For many years now, there are several what we used to call foreign cars that are totally made in Canada. All those large forage harvesters that you notice are made in Europe. Much farm machinery is foreign made – John Deere, Massey Ferguson, Case IH, Fendt, New Holland, Kubota, Kioti, etc., but a lot of that machinery comes through the U.S. and hence is subject to tariffs. Most companies used to have parts depos in Canada, as well as in the U.S.A. – that could change back.
It seems to be easier to make big money by scamming than by hard work. Be careful, read the labels, watch for the little blue cow logo, watch for illegal maple leaf stickers on food packages, and support your reliable local businesses.

Chris Judd is a farmer in Clarendon on land that has been in his family for generations.