What 'cost us $1,000 ... is now $2,000': Hamilton farmer takes stock of future as fuel, equipment costs rise

As farmers across Canada bring in crops during harvest season, Drew Spoelstra of Hamilton is reflecting on what may happen down the road amid rising fuel costs, expensive equipment and uncertainty over U.S. tariffs.

Spoelstra has a farm near Binbrook in Hamilton and is president of the Ontario Federation of Agriculture.

Spoelstra said this year's harvest has been going well thanks to favourable weather, but the cost of getting crops out of the field has become more difficult to manage.

"What used to cost us $1,000 to fill up our combine and go out and work for the day is now $2,000."

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Farmers are facing higher costs for fertilizer, machinery and other supplies, with little ability to pass those expenses on to buyers.

"We're not buying and selling at a price where we can pass those costs on," Spoelstra said.

Equipment costs climbing

Spoelstra operates a dairy, grain and Clydesdale breeding farm with his family, working roughly 728 to 769 hectares around Hamilton.

He grows corn, soybeans, wheat and hay. Some of the crops are used to feed cattle and horses, while others are sold into domestic and export markets.

While the farm has never purchased a new combine, Spoelstra said, the cost of replacing its 2013 model has climbed significantly.

The machine was worth about $500,000 when it was new. Today, such a combine can cost about $1 million, he said.

"I didn't pay a million dollars for a farm, never mind a million for a piece of equipment that I use for two months out of the year."

The rising cost of machinery is reflected in declining equipment sales.

The Association of Equipment Manufacturers released a report stating Canadian tractor sales in September 2026 were down 15.1 per cent compared to sales in September 2025, with combine sales 37.6 per cent lower.

Tractors like this one, the Case IH Magnum 280, cost farmers hundreds of thousands of dollars. Spoelstra says keeping up with maintenance is expensive and the price of parts continues to rise. (Jeffery Tram/CBC)

Colin Mang, an economist at McMaster University, says tariffs are adding to the pressure on farmers, even when their crops themselves are not subject to U.S. duties.

The Canadian government has exempted tractors, combines and some other machinery from its counter-tariffs when used for agricultural purposes. But some farm and livestock trailers still face 25 per cent tariffs.

American tariffs on Canadian-made parts also raise costs for manufacturers, and they can then be passed on to farmers here who are buying equipment.

"Unfortunately, Canadian farmers are caught up in this," Mang said.

He said some farmers may look to equipment made in Europe, but shipping costs and supply-chain challenges can make that a less attractive option.

WATCH | Major combine manufacturer moves production from U.S. to Europe amid trade uncertainty:

Major combine manufacturer moves production from U.S. to Europe amid trade uncertainty

September 26, 2025|

Duration

2:04

Trade uncertainty weighs on farmers

Mang said most Canadian agricultural products continue to enter the U.S. tariff free, but trade barriers have increased for specific sectors.

Canadian dairy products, including milk, cheese and whey, have been particularly affected by American trade restrictions, he said.

Canada exports roughly $350 million to $400 million worth of dairy products to the U.S. in a typical year while importing about $1 billion worth of American dairy products, Mang said.

Canadian counter-tariffs on U.S. dairy products have also disrupted trade.

For farmers, the uncertainty surrounding future trade arrangements is another challenge when making long-term business decisions.

Spoelstra said the biggest impact of the trade dispute has been the additional costs of equipment, fuel and other supplies.

"We don't know today, tomorrow, what a trade deal is going to look like, if there's going to be a trade deal, if it's going to affect agri-food products."

Mang said Canada has been looking to diversify its agricultural export markets, including by restoring trade with China earlier this year.

But he said the U.S. remains a key market for Canadian farmers because of its proximity and lower transportation costs.

"Geographically, diversification in agriculture is more difficult than diversification in other things."

For many farmers, he said, selling closer to home remains the most practical option, particularly for perishable products.

Agriculture's economic importance

Spoelstra said governments need to recognize agriculture as a strategic economic priority, alongside industries such as steel, automobiles and energy.

Ontario's agri-food sector contributes roughly $52 billion to $53 billion to the province's gross domestic product (GDP) and supports about 870,000 jobs, he said.

"Everybody needs to eat three times a day, and that comes from agriculture."

Mang said governments have introduced tax incentives and other programs aimed at boosting agricultural production, including support for greenhouse construction and faster writeoffs for capital equipment.

He said technological advances, including automated indoor farms, could also help increase production.

But he cautioned that such investments are expensive, adding to the challenges for farmers already facing rising costs.

Despite those pressures, Spoelstra says he says he is hopeful about the future of farming.

Spoelstra's dairy, grain and Clydesdale breeding operation includes 50 cows in a robotic facility and about 45 Clydesdale horses. The farm was founded in 1989. (Jeffery Tram/CBC)

Spoelstra and his wife, Heather won the 2026 Ontario Outstanding Young Farmers award. He hopes to continue investing in his farm so it can be passed on to another generation, whether it's his children or others who want to enter the industry.