Canada offers financial aid to farmers and companies affected by Iran war price spikes

By Ed White

WINNIPEG, Manitoba, March 20 (Reuters) - Canada's federally backed farm lender is offering financial aid to farmers, agricultural businesses and food companies hit by the spike in fertilizer and energy prices, it said on Friday.

Borrowers from the Farm Credit Canada program will be able to receive a new or additional credit line of up to C$500,000 ($364,670.70), to modify terms and to defer principal payments on existing loans.

The money will come from an expansion of the Trade Disruption Customer Support Program, which was introduced in March 2025 to help agriculture and food borrowers hit by U.S. tariffs.

It will now also provide support to help producers and agribusinesses "manage financial pressures caused by unexpected market shocks," Friday's statement said.

Fertilizer prices have soared since the Iran war began at the end of February and led to the closure of the Strait of Hormuz to most shipping, disrupting urea and sulphur supplies from the Gulf.

As a result, farmers around the world are struggling with fertilizer costs as the northern hemisphere spring planting season approaches.

($1 = 1.3711 Canadian dollars)