The Ontario Federation of Agriculture (OFA) is hopeful the new year will include a resolution to fertilizer tariffs.
The Canadian government applied tariffs to fertilizer imported from Russia in February 2022, in response to the invasion of Ukraine.
In mid-December, Finance Minister Chrystia Freeland announced Canada would use revenue from the fertilizer tariff to help rebuild the power grid infrastructure in Ukraine and committed to working with Ontario farmers in order to find a fair resolution to the matter.
Lambton and Middlesex OFA Vice President Crispin Colvin said a number of suggestions are being considered to support the sector, such as investing in fertilizer production in Canada and programs to support agriculture.
"The federal government has been adamant and extremely clear that the money will not go directly in dollar terms and cheques to individual farmers," said Colvin. "But they are willing to look at possible programs to bring the money back to agriculture."
In 2021, Ontario farmers paid $1.2 billion for fertilizer.
Colvin said fertilizer prices have jumped about 300 per cent.
"When you're trying to grow the crops, you need to feed the crops and when the products you're buying to feed the crops jump 300 per cent, it really impacts your bottom line so even with reasonably good returns on crops, as we did the last year when you're hit with a bill that heavy it really cuts into your profit margin considerably."
Colvin said the situation with tariffs goes "hand in glove" when it comes to impacts felt by consumers as well.
"If my prices go up, I can't pass on the price but inevitably, it's going to impact food prices at the grocery store. That's all part of the inflation cycle under which we're all suffering [from] at this point."
OFA President Peggy Brekveld said in a statement that in most cases, orders for imported fertilizer were placed prior to Russia's invasion of Ukraine but tariffs were still applied.
"We appreciate the position the federal government is in and we continue to work with them," said Colvin. "We want to be partners in this and find solutions that are going to be win-win for everybody, that's the ultimate goal."
The OFA represents 38,000 farm families across the province.
-With files from Josh Boyce