Grain Growers of Canada (GGC) is calling on the federal government to introduce a temporary 50 cent/litre diesel rebate to help grain producers cope with sharply higher fuel costs, particularly during the harvest season.
In an Oct. 1 letter to Finance Minister François-Philippe Champagne, the organization, which represents more than 100,000 Canadian grain farmers, proposed establishing a Federal Emergency Diesel Relief Fund for Food Producers.
GGC argues that diesel is an essential farm input, with producers having little flexibility to reduce consumption during critical field operations. Unlike some businesses, farmers cannot pass higher fuel costs directly along to buyers through higher grain prices.
The organization illustrated the financial impact using a Class 8 combine operating eight hours daily over a 30-day harvest. At 70 litres/hour, the machine would consume approximately 16,800 litres of diesel.
At $1.10/litre, the fuel bill would total $18,480. At $2.10, the cost would climb to $35,280, an increase of $16,800 for one combine alone.
Under the proposed rebate, that operation would receive $8,400 in relief, offsetting half the additional expense.
GGC wants the rebate to cover eligible diesel purchases for seeding, field operations, harvesting and on-farm grain handling, including purchases already made during the affected harvest season.
The request comes as American farmers are set to receive their own fuel cost assistance.
President Donald Trump early this week announced an US$8-billion Harvest Fuel Relief program to help farmers offset higher diesel and other input costs. The one-time payments will be administered by the USDA, with commodity-specific payment rates expected in November.
GGC is urging Ottawa to implement relief promptly or provide funding through Budget 2027 if necessary.
The organization maintains that targeted assistance would help protect farm cash flow, preserve operating margins, and support investment in future production.
