Farm Input Prices Alberta
Nitrogen fertilizer costs are 45% above year-ago levels in Alberta. The Strait of Hormuz crisis and Chinese urea ban are changing Prairie crop economics.
Alberta grain producers are heading into the final stretch of seeding with nitrogen fertilizer costs at the highest levels since the 2022 commodity price shock, driven by two simultaneous supply disruptions: a Chinese urea export moratorium in place since January and energy infrastructure disruption along the Strait of Hormuz following the outbreak of U.S.-Iran-Israel conflict in late February. Producers who did not pre-purchase at fall 2025 fill prices are absorbing walk-up nitrogen costs approximately 45% above where the market sat twelve months ago, with direct and material consequences for canola and wheat production economics across Alberta.
Phosphate costs are also elevated, running roughly 12–13% above year-ago levels. Potash has remained comparatively stable. On fuel, a significant development broke today: WTI crude oil dropped more than 12% in a single session on reports of a possible U.S.-Iran ceasefire framework, pulling back from peaks above USD $100/barrel toward the low-to-mid USD $90s. If sustained, this will flow through to diesel rack prices over the coming weeks. The federal excise tax suspension on diesel, in effect since April 20 through September 7, has already removed 4¢/litre from pump prices.
Part B examines the structural conditions driving each input category, calculates current per-acre production economics for Alberta canola and wheat, and explains what today’s late-breaking crude price movement means for producers still managing fuel and fertilizer exposure.
[Read the full report and analysis →]
Tags: urea price Alberta, nitrogen fertilizer 2026, MAP fertilizer price, Strait of Hormuz fertilizer, Chinese urea export restriction, Alberta farm input prices, canola production costs, diesel fuel Alberta, federal excise tax diesel, Prairie crop break-even
Input purchase timing decisions involve individual farm financial and agronomic factors. This analysis identifies market conditions only. Consult your input supplier and financial advisor before making purchase commitments.
This post was produced with AI assistance. All sources are attributed and linked. Western Farm Report editorial standards apply.