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Canola Quick Bytes
A supplement to U.S. Canola Digest
Capitol Hill
On Jan. 10, the U.S. Department of Treasury and Internal Revenue Service released guidance on the the Clean Fuel Production Credit (section 45Z), which provides a tax credit for the production of transportation biofuels with lifecycle greenhouse gas emissions below certain levels. This guidance was urgently needed following the expiration of the Section 40A Biodiesel and Renewable Diesel Blenders Tax Credit on Dec. 31, 2024 and the Jan. 1, 2025 effective date for the Clean Fuel Production Credit. The U.S. Department of Energy released an updated 45ZCF-GREET model to calculate tax credit values based on emissions rates of feedstocks and pathways for biodiesel, renewable diesel, Sustainable Aviation Fuel, renewable propane and naphtha. In this model, results for canola are very poor and therefore would not generate any tax credit in most cases. The U.S. Canola Association is extremely shocked and disappointed that this model fails to accurately or effectively incorporate canola.
Following expiration of the Section 40A Biodiesel and Renewable Diesel Blenders Tax Credit on Dec. 31, 2024, production of these biofuels made from canola oil will be severely depressed. Canola has been approved as an advanced biofuel feedstock under the Renewable Fuel Standard since 2010, typically representing 5-10% of annual feedstock utilization for biomass-based diesel. The Environmental Protection Agency’s most recent analysis for canola oil-based renewable diesel conservatively shows greenhouse gas emission reductions up to 78% relative to petroleum diesel with a mean net emissions reduction of 67%. This canola biofuel also has approved pathways for the California Low Carbon Fuel Standard program. The USCA and its industry partners have been working to ensure that spring and winter canola types are fully and accurately integrated into the modelling for the 45Z credit. However, the faulty construct of the tax credit and flawed assumptions and data that is being used has excluded this proven feedstock. The new Administration and Congress need to provide greater certainty and clarity on the biofuel tax credit. Such incentives are necessary to fulfil potential investments in production and ensure continued growth in clean-burning, domestic renewable energy.
President Donald Trump has threatened to impose a 25% tariff on all exports from Canada and Mexico along with a 10% across-the-board tariff on China as early as Feb. 1. In response, Canada has prepared a list of commodities valued at $105 billion on which it would impose immediate retaliatory tariffs. However, much of this list remains unknown. As well, many believe the current deadline could be a negotiation tactic and that any tariffs would likely be implemented after April 1 following Trump’s signing of a memorandum requiring agencies to compile individual trade analyses for all countries.
More than 500 agricultural groups, including the U.S. Canola Association, signed a letter to Senate leaders in support of Brooke Leslie Rollins becoming the 33rd Secretary of the U.S. Department of Agriculture (USDA). “We need her leadership now at USDA to advocate for a new farm bill, stabilize an agricultural economy in decline, support the full food and agriculture and forestry value chain, and continue American agriculture’s long history of providing the most secure, affordable and nutritious food supply in the world,” wrote the groups. Rollins has been engaged in American agriculture since an early age. She previously served as deputy general counsel and policy director for former Texas Governor Rick Perry and President Trump’s former director of the United States Domestic Policy Council.
The USDA announced that Agriculture Risk Coverage and Price Loss Coverage insurance programs will accept applications from Jan. 21 to April 15, 2025. Growers are encouraged to contact their local Farm Service Agency offices for enrollment, even if not changing their program elections.
Agronomy

The USDA reported in its Jan. 10 Annual Crop Production report (page 47) that canola production in 2024 was a record high of 4.83 billion pounds, up 13% from 2023. The average yield, at 1,784 pounds per acre, is down slightly from the previous year’s average but it is the sixth highest on record. Planted area was 2.75 million acres, 13% above 2023. Production in North Dakota was a record high of 3.92 billion pounds, an increase of 13% from the year before. Canola acreage in the state was a record 2.14 million acres, up 11% from 2023. Other record highs were canola acreage in Montana (215,000 planted acres), yield (1,800 pounds/acre) in Oklahoma and production in Washington (285.7 million pounds).
Winter canola in the southern Great Plains is being driven by its yield benefits and potential for biofuel production, reports the Manitoba Co-operator. Michael Stamm, agronomist and canola breeder at Kansas State University, has been leading research to improve winter canola varieties, addressing challenges like crop consistency and winter survival. He found that hybrid varieties significantly outperform open-pollinated ones, particularly under extreme weather conditions. He aims to develop hardier varieties with improved traits, transitioning winter canola to a hybrid-driven market, spurred by growing demand from renewable fuel industries.
Nutrition
In response to a call for public comments on the 2025 Dietary Guidelines Advisory Committee’s scientific report, the U.S. Canola Association highlighted the composition and health benefits of canola oil and requested that it be listed as a good source of unsaturated fat and vitamins E and K. The report notes that saturated fat is a nutrient of public health concern due to overconsumption and vitamins E and K are under-consumed by many Americans. Canola oil can help address these issues as a good source of these vitamins and unsaturated fat. The final scientific report will used by the U.S. Departments of Agriculture and Health and Human Services to develop the Dietary Guidelines for Americans 2025-30, which will be issued this year. More information is on the USCA Blog.
Food & Wine magazine debunked social media confusion about the nutritional value of seed oils like canola. “In addition to being affordable and widely available, canola oil offers plenty of benefits for high-heat cooking methods … and commonly appears in foods like salad dressings, marinades, and baked goods,” it says. Moreover, “canola oil has a balanced combination of healthy fats, including monounsaturated, omega-6 polyunsaturated, and omega-3 polyunsaturated fats,” adds Dariush Mozaffarian, M.D., director of the Food is Medicine Institute at Tufts University. “The latter is particularly important, as there are not many meaningful plant sources of omega-3s.” Research also shows that canola oil offers “excellent benefits” for cholesterol levels and can decrease bodily inflammation. “The healthy fats in canola oil, especially the omega-6 … also improve blood glucose, insulin resistance, and insulin production,” which is linked to lower risk of type 2 diabetes, Mozaffarian notes.
A new paper in the scientific journal Current Opinion in Clinical Nutrition Metabolic Care reviews the most recent literature on the physiological effects of omega-6 polyunsaturated fatty acids, especially linoleic acid (LA) found in seed oils like canola. “Contrary to previous concerns that high LA intake may increase inflammation, most recent evidence supports the benefits of LA for cardiometabolic health,” it says. “Several large studies report that higher blood LA levels correlate with reduced risks of coronary heart disease, stroke, and type 2 diabetes …The ideal LA intake level remains uncertain, but current intakes around 5-10% of energy appear beneficial.”
Other Countries
Federated Co-operatives Limited (FCL) announced on Jan. 17 that it has paused for the foreseeable future work on a renewable diesel facility and a joint venture canola crushing plant in Regina, Sask., due to regulatory and political uncertainty, potential shifts in low-carbon public policy, and escalating costs. The $360-million canola crushing plant was proposed as part of a joint partnership between FCL and AGT Foods, adds the CBC, which would provide the FCL renewable diesel facility with about 50 percent of the canola stock it would require.
U.S. President Donald Trump may levy tariffs on Canada as early as this month, reports the CBC. “We’re thinking in terms of 25 percent [tariffs] on Mexico and Canada because they’re allowing vast numbers of people … and fentanyl to come in,” he says. A 25 percent tariff would be particularly devastating to Canada as experts have said just a 10 percent levy would reduce the country’s GDP by billions of dollars and potentially plunge it into a deep recession requiring government stimulus. Canada is prepared to impose immediate tariffs on $37-billion worth of American goods if Trump moves against it. Trump issued a memo on Jan. 20, calling on several U.S. departments to investigate the causes of the country’s “large and persistent annual trade deficits in goods, as well as the economic and national security implications and risks resulting from such deficits.” The memo also ordered a public consultation to prepare for a review of the United States-Mexico-Canada Agreement and an investigation of “the unlawful migration and fentanyl flows from Canada, Mexico [and China]” to be completed by April 1.
Canada’s canola industry is facing threats from the United States and China, notes Chris Vervaet, executive director of the Canadian Oilseed Processors Association, in Farmtario. They include recent changes to the biofuel tax credits, the potential 25% tariff on all U.S. imports from Canada and used cooking oil from China indirectly entering the Canadian biofuel market. “A tariff is going to have a significant impact on our industry,” Vervaet states. “In recent years, almost all of the canola oil exports have gone to the United States. That’s primarily driven by the growth of the renewable fuels market.”
The 2025 Canadian Crops Convention, hosted by the Canola Council of Canada and Canada Grains Council, will be March 4-6 at the JW Marriott in Edmonton, Alberta.
Latest from Industry
Bayer and Neste, a leading producer of sustainable aviation fuel and renewable diesel, announced on Jan. 8that they will co-develop and scale-up winter canola in the Southern Great Plains as a feedstock for biofuels. “Renewable fuels are playing an important role in the decarbonization of transportation and energy while global targets continue to shape biofuel markets and accelerate demand for biomass-based feedstocks going forward,” says Frank Terhorst, head of strategy & sustainability at Bayer CropScience. To this end, Bayer aims to launch hybrid TruFlex winter canola in 2027. “Winter canola not only has the potential to result in lower carbon intensity raw material, but can also bring additional environmental benefits to cropping systems and provide farmers with new income opportunities,” adds Artturi Mikkola, senior vice president of feedstock sourcing & trading at Neste.
 The National Oilseed Processors Association (NOPA) announced on Jan. 21 that Devin Mogler will serve as NOPA’s new President and CEO, effective Jan. 27. He will succeed outgoing President and CEO Kailee Tkacz Buller, who is leaving NOPA to serve as Chief of Staff to incoming U.S. Department of Agriculture Secretary Nominee Brooke Rollins.
Field to Market: The Alliance for Sustainable Agriculture®, of which the USCA is a member, announced on Jan. 10 new board members and officers for 2025. The board is comprised of three elected representatives from each voting sector (Agribusiness; Brands & Retail; Civil Society; and Grower Organizations) and three representatives from the non-voting sector (Affiliate).
The Northern Canola Growers Association and North Dakota State University (NDSU) will host a “Getting it Right in Canola Production” webinar on Friday, March 14 from 8:30 am to 12 noon. This annual crop production conference features the latest research-based production information from NDSU specialists. They address insect pests, diseases, weeds, variety trials and market. This year will also address canola’s role in global biofuel production. Growers can register at northerncanola.com.
The Pacific Northwest Canola Association submitted names of oilseed producers who agreed to serve on an advisory group to the Montana Department of Agriculture in order to pursue the establishment of an oilseed checkoff in the state. The advisors will be tasked with determining which crops to include and corresponding assessment rates. This information will then be placed on a ballot for a vote by oilseed producers across the state. A checkoff would provide much needed region-specific research and marketing for oilseeds in Montana. A previous effort to establish a checkoff several years ago narrowly did not pass.
About the USCA
The spring 2025 board and membership meeting will be in Washington, D.C., Mon.-Wed., March 17-19, followed by a joint reception on Capitol Hill with the National Oilseed Processors Association and American Soybean Association the evening of March 19.
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