FARMING IS COMPLEX. Farming has always demanded resilience, but today’s producers are navigating an increasingly complex and challenging landscape. There are no shortages of challenges that farmers face – from volatile markets to rising input costs, Mother Nature and more recently tariffs and trade barriers. And across Canada, farmers can face a unique mix of these issues.

In January of 2025, we asked over 1000 farmers from across Canada (outside of QC) about their level of concern on a list of 21 challenges that farmers currently face or may face in the future. This report focuses on what Canadian farmers are most concerned about. For “increasing costs of production”, we dove in deeper to understand ways farmers plan to manage them.

The chart below shows the top 10 issues that Canadian farmers are most concerned about, expressed as the % of farmers who say they are very concerned.

Increasing costs of production

Rising costs of production is the top concern for farmers across Canada – and for good reason. From crop inputs like fertilizer and pesticides, to feed, fuel and farm equipment, nearly every input has become more expensive in recent years. The cost increases tend to squeeze an already tight margin, making it harder to earn a profit and plan for the future.

Overall, 92% of farmers are concerned about rising costs of production – over 64% said they were highly concerned – with little variability across provinces.

For many farmers, financial pressure is forcing tough decisions about investments and long-term sustainability of the operation. We asked the same group of Canadian farmers “On your farm operation, what kinds of things are you doing to help manage the rising costs of production?”

The chart below illustrates ways farmers are managing rising production costs:

Limit Equipment Expenses – The most common way that farmers plan to control expenses is by repairing and maintaining current equipment, buying used equipment, and avoiding the purchase of new equipment. Equipment manufacturers and dealers can expect to see lower sales of new equipment.

Verbatim:

• “We are doing more equipment repairs and maintenance ourselves and not doing non-essential repairs…. we can put up with it if it doesn’t look so pretty anymore.”
• “We are not buying machinery. There isn’t much else we can do that won’t cut production and lead to greater losses.”

Reduce Spending on Inputs – Many farmers indicated that they would be restricting crop input expenditures to those that are absolutely needed. Crop input manufacturers could feel the impact as farmers exercise tighter controls on spending, opting for lower application rates and lower cost products.

Verbatim:

• “Really focus on our numbers, take a hard look at all inputs and see where we can reduce $$$, look at generic herbicide options, try and maximize rebates to reduce cost.”
• “Trying to cut corners when possible.”

Shop Around – Farmers say they will be shopping more widely, comparing prices with more retailers and looking to find deals for their necessary purchases. Retailers can expect more pressure on their margins as farmers make more price comparisons from retailer to retailer.

Verbatim:

• “Source out prices well in advance from far and wide and bring in product ahead of time if the cost savings warrant.”
• “Shop around for better prices. Always keep your eyes open for the best deal.”

Pre-Purchase Inputs – Prepaying to lock in early pricing discounts was also commonly mentioned to reduce the cost of some inputs. At the time of the survey, there was little opportunity left to lock down purchases prior to the 2025 season. However, crop input suppliers can expect more interest in early buy for next season.

Verbatim:

• “Trying harder to buy inputs as low as possible whether fuel, fertilizer or chemicals. Got a low interest rate on my canola because I bought early etc.”
• “We are trying to prepay large purchases like fertilizer, seed, fuel and chemicals in order to save on the early cash discounts.”

Make Careful Decisions – Farmers often talk about more efficient use of inputs and making decisions based on conditions. For example, no fungicide applications when crop/weather conditions are not conducive of disease, adjust fertilizer rates based on moisture expectations, and using soil tests to limit fertilizer rates.

Verbatim:

• “Trying to be efficient as possible with our fertilizer and chemical applications! But not to a point where it hurts yields!”
• “Only fertilize to moisture expectations, using slow-release nitrogen or N stabilizer. We also do a lot of single pass seeding. We buy used equipment and do our own maintenance. Try to buy inputs in off season for better pricing, we grow some nitrogen fixing crops like peas, soybeans and lentils.”

These days, farmers have a lot to worry about. They are under serious financial pressure due to low commodity prices combined with rising costs of production. They worry about government regulations and changing taxation rules at both the federal and provincial levels. And now they have to deal with new trade barriers that will potentially impact market access.

The one thing that is certain: Farmers are incredibly resilient. Despite the mounting challenges—from financial strain to regulatory uncertainty and shifting trade dynamics—they continue to adapt, innovate, and persevere in order to feed our communities and sustain their livelihoods.