As diesel prices continue to climb, one local farmer says the rising cost of fuel is adding more pressure ahead of harvest.

Nick Cornea, who farms near Drinkwater, said his operation typically purchases fuel in bulk to secure lower prices, but those savings only go so far.

"Just with how unstable the Middle East is and these world oil prices and now canola prices, it is skyrocketing more than most people think, and when you're buying on a huge level, it definitely stings," says Cornea.

Cornea said he couldn't provide an exact year-over-year comparison for gasoline prices, but noted he's paying significantly more for diesel than he did last year.

"I think we averaged about $1.07 a litre all last year by buying in bulk. This year I think we're going to be probably closer to that $1.20 to $1.30 a litre for bulk farm fuel, which is a significant amount."

Patrick De Haan, GasBuddy's head of petroleum analysis, said the increase isn't unique to Moose Jaw or even Canada. Instead, it's being driven by geopolitical tensions affecting global oil markets.

"The reason for the jump is that oil prices have been rising again as new escalations between the U.S. and Iran break out. In addition, we've seen Ukrainian attacks on Russian oil refineries impair Russia's ability to export refined products."

De Haan said those events have pushed oil prices higher around the world, resulting in motorists paying more nearly everywhere.

Bulk purchase helped avoid latest increase

Cornea said he was able to place his latest bulk fuel order before the most recent spike in diesel prices thanks to a timely call from Moose Jaw Co-op.

"Moose Jaw Co-op does a really good job with letting us know when they see prices are about to go up. They'll phone and say if you've got room, you should probably fill. That's what we did, and we saved that extra 27-cent jump in the price."

Even with those savings, Cornea said rising fuel costs continue to reduce already tight margins as he prepares to harvest lentils, canola and durum wheat.

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Harvest costs continue to climb

Cornea estimates it will cost about $300,000 to complete this year's harvest once fuel, wages and equipment depreciation are factored in.

He said the hope now is for strong crop yields to offset rising input costs and weaker grain prices.

"It really does all come down to cost per acre, and the lower the cost per acre, and a higher return on grain prices, a guy can kind of stay afloat and hopefully break even every year, if not make a little bit."

Cornea added that forecasts for lower grain prices on this year's crop are creating additional uncertainty heading into harvest.

Consumers in Moose Jaw are currently paying between 183.9 cents and 215.9 cents per litre for diesel, while the average price of regular gasoline sits at 170.9 cents per litre, up nine cents from a month ago.

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