The prevented planting (PP) coverage level for canola in 2018 will be 55 percent, thanks to U.S. Canola Association (USCA) input to the U.S. Department of Agriculture's Risk Management Agency. The agency originally proposed 45 percent for basic PP coverage but the USCA convinced it to be higher because the agency's cost factor for pre-applied fertilizer for canola was too low in its PP evaluations. Producers will continue to have the option to add 5 or 10 percent to the base PP coverage.
U.S. canola acreage in 2017 is expected to increase by 26 percent, according to the June 30 report by the U.S. Department of Agriculture's National Agricultural Statistics Service. A total of 2.16 million acres planted is projected — the first time the crop has topped the 2 million-acre mark. The Northern Plains continues to lead the nation's canola production with 1.73 million acres planted this year, up 16 percent from 2016. The Southern Great Plains continues to rebound in acreage as well with 210,000 planted acres reported, double that of last year. And the 221,000 acres planted in the Pacific Northwest is an 84 percent increase over 2016.
A new 10-year baseline (2018-2027) for the 2018 Farm Bill released by the Congressional Budget Office on June 29 projected spending of $143 billion for mandatory farm programs and $679 billion for the Supplemental Nutrition Assistance Program. Farm program spending is down $4 billion while nutrition is up $7 billion from the January estimates. This will be the funding Congress has available to write the farm bill, barring any further reductions in te FY2018 budget by the Congressional Budget Committee, which is currently being negotiated.