Canola Quick Bytes

A supplement to U.S. Canola Digest


Capitol Hill

Happy New Year!

The U.S. Environmental Protection Agency (EPA) issued its regulatory agenda for upcoming actions and the canola renewable diesel petition was included with a proposed rule in January 2022 and final rule by July 2022. Timelines from the EPA are often missed, but all indications are that it is moving forward on the U.S. Canola Association (USCA) petition.

The California Air Resources Board (CARB), a regulatory body that administers the state’s low-carbon fuel standard, published a provisional carbon intensity (CI) score for canola-based renewable diesel produced at the Phillips 66 facility in Rodeo, Calif. The provisional scores are used until 24 months of production data are available. Canola’s CI score of 51.87 (gCO2/MJ) is better than soy renewable diesel, which has two values (54.68 and 58.16 gCO2/MJ), depending on how the feedstock is transported to California. The lower the CI, the better. Renewable diesel demand and future markets for sustainable aviation fuels and the feedstocks needed to produce them, including canola, continue to generate a lot of interest, speculation and analysis.

On Dec. 7, the EPA released its overdue proposed rule for Renewable Fuel Standard volumes for 2022 with a mixed bag of biofuel interests. The proposed volumes are near the expected demand level for this year. On the positive side, the EPA proposed increasing the overall biofuels volumes for 2022 and denied 65 pending waiver requests submitted by refiners. However, it also proposed retroactively reducing the biofuel volumes required for refiners in 2020. The EPA had previously extended the deadline for refiners to comply with the 2020 and 2021 volume requirements due to the COVID-19 pandemic. It is now proposing to reduce the volumes for 2020. On the same day, the U.S Department of Agriculture (USDA) announced $800 million in funding assistance for biofuel producers in response to losses incurred as a result of the pandemic.

Prior to adjourning for the year, Congress passed another Continuing Resolution (CR) to keep the government operating at Fiscal Year 2021 levels through Feb. 18, 2022. It is hoped that FY2022 appropriations bills will be passed rather than defaulting to a CR for the entire year. The “Build Back Better” bill that Democrats were hoping to enact remains stalled. The package passed by the House includes $28 billion in agricultural conservation funding and $2 billion in agricultural research funding.

Agronomy

How can you add planters to your canola production strategy? Unlike drills, planters add precision depth, seed placement and seed spacing. Doug Moisey of Pioneer Seeds Canada says that row spacing is the first of several considerations for planter success. He recommends setting a maximum of 15 inches to each row along with 11-inch spacing to start. Other considerations include weed management because wider spaces allow more room for weeds to grow along with crops. Overall, the key to planter success with canola is focusing on eliminating variability in emergence.

Nutrition & Health

Did you know that canola meal is one of the most widely used protein sources for livestock? That’s because of its excellent amino acid profile, which studies showboost milk production in dairy cows. Canola protein is now also being produced for human nutrition to meet growing demand for plant-based proteins.

“Sleep and rest are not the same thing, although many of us incorrectly confuse the two,” notes Lesley Kelly, farmer and founder of the Do More Ag Foundation. She discusses seven types of rest that all farmers need in the January USCA Blog: physical, mental, emotional, social, creative, sensory and spiritual. Prevent burn-out by following her tips and visiting DoMore.Ag.

Other Country News

In 2021, Canadian canola was among several crops that dropped in production due to droughts. The adverse weather caused production to drop more than 33 percent to its lowest level since 2007 at 12.6 million tonnes nationally. Canadian barley and wheat also took a hard hit in 2021.

The Canadian government is investing big in the Canola Council of Canada to “help the industry proactively address and resolve trade barriers in international markets, foster market diversification as well as build the value and reputation of canola around the world through activities.” Through its AgriMarketing Program, the government is expected to invest CAN $1.8 million. With matching industry funding, investments are expected to bring the total to CAN $3.6 million.

Latest Industry News

The Northern Canola Growers Association (NCGA) held its 24th Annual Canola Expo in Langdon on Dec. 14. Enthusiasm was high among growers with the current market prices for canola and the rosy outlook for the oilseed market. Mike Krueger was the keynote speaker and Ron Beneda, longtime canola expert, moderated a panel of growers about their success planting canola in wider row spacings with decreased seeding rates. Growers represented all areas of the state. Drs. Ven Chapara and Jan Knodel gave presentations on clubroot and insect control.

Three board members were re-elected to the NCGA Board during its recent annual meeting: Troy Romfo of Calvin, Dan Marquardt of Bottineau and Zach Jacobson from Langdon, N.D.

About the USCA

The USCA is planning to hold a board meeting March 7-9 in Washington, D.C. The tentative schedule includes a welcome reception on the evening of Monday, March 7, a full day meeting on March 8 followed by a board dinner, and Congressional office visits on Wednesday, March 9.

The USCA welcomes new industry board member Ceres Global Ag of Golden Valley, Minn. In May 2021, Ceres announced it will build a new canola crush facility at its existing site in Northgate, Saskatoon, Canada. Construction will begin in spring 2022 and to be completed by 2024. Ceres intends to provide low-carbon intensity feedstocks to the expanding biofuels market and high-quality feed products to livestock producers.

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The USCA wishes you a healthy, joyful and productive 2022!