Canadian farm input costs continued their sharp upward climb in the second quarter of 2026, with Statistics Canada's latest Farm Input Price Index on Thursday reaching its highest level on record.
The national index climbed to 186.7 in the April-to-June period, up from 180.3 in the first quarter and 167.9 in the second quarter of 2025. That represents a quarterly increase of 3.5% and a year-over-year gain of 11.2%.
The latest figures highlight mounting cost pressures facing Canadian agricultural producers, particularly as higher fuel, fertilizer, and machinery expenses threaten to squeeze farm profitability.
Machinery fuel costs were among the biggest contributors to the recent increase. The fuel price index surged to 153.3 in the second quarter, compared with 114.9 in the first quarter and 101.2 a year earlier. That represents a quarterly jump of 33% and a year-over-year increase of 51%.
Fertilizer prices also moved sharply higher, with the index climbing to 167.8 from 145.1 in the previous quarter and 135.4 in the second quarter of 2025. That translates into increases of 16% quarterly and 24% annually.
The overall Farm Input Price Index has now increased for six consecutive quarters, rising nearly 18% since the third quarter of 2024. Looking further back, the index has risen nearly 25% since the second quarter of 2022, when it stood at 148.
Statistics Canada's index measures changes in the prices Canadian farmers pay for agricultural inputs, using 2012 as its reference year. The figures are not seasonally adjusted.
