Canola Quick Bytes

A supplement to U.S. Canola Digest


Capitol Hill

The U.S. Department of Agriculture (USDA) reported that producers have received more than $4 billion to date through the Emergency Relief Program (ERP), representing about 67 percent of the $6 billion projected in its first phase. The USDA mailed pre-filled applications in late May to producers with crop insurance who suffered losses due to natural disasters in 2020 and 2021. Commodity and specialty crop producers have until July 22 to complete applications. The USDA is implementing ERP in two phases, with the first utilizing existing claim data and the second intended to cover other producers and fill-in gaps.

The USDA reminds farmers who have not yet completed their crop acreage reports to do so before July 15 with their local Farm Service Agency (FSA) office. The reports will help farmers become eligible for many FSA programs, including disaster assistance. Filing acreage reports, including failed and prevented planted acres, can prevent the loss of program benefits.

The House Appropriations Committee passed its draft FY 2023 agriculture appropriations bill, which funds agencies and programs within the USDA and U.S. Food and Drug Administration. For FY2023, the bill provides $27.2 billion – an increase of $2.075 billion or 8 percent – above FY2022. Notably, the bill provides nearly $3.6 billion for agricultural research programs, including the Agricultural Research Service, National Institute of Food and Agriculture and highest ever level for Agriculture and Food Research Initiative, USDA’s flagship competitive research program. The legislation also invests over $560 million for the expansion of broadband service to enhance rural development, including $450 million for the ReConnect program. This is in addition to the $2 billion broadband investment in the recently enacted infrastructure package.

The White House Office of Management & Budget released an updated regulatory agenda for the coming months which pegged September for the final rule on the canola renewable diesel Renewable Fuel Standard (RFS) pathways. The U.S. Canola Association (USCA) submitted comments and looks forward to a final rule that approves canola renewable diesel for RFS eligibility.

On June 3, the Environmental Protection Agency (EPA) finalized RFS volumes and rules for 2021 and 2022 as well as reset volumes and standards for 2020. As shown in the table below, the EPA slightly increased biomass-based diesel volumes for 2022 after holding them level from 2020 to 2021. The biomass-based diesel industry welcomed the final rule as a positive step toward addressing high fuel prices and shortages. A recent study from the World Agricultural Economic and Environmental Service, sponsored by Clean Fuels Alliance America (formerly the National Biodiesel Board), shows that U.S. production of biodiesel and renewable diesel provides an essential addition to fuel supplies and lowers the price of diesel fuel by 4 percent.

Final Volume Requirements for 2020-22 (billion gallons):

Category 2020 2021 2022
Cellulosic Biofuel 0.51 0.56 0.63
Biomass-Based Diesel 2.43 2.43 2.76
Advanced Biofuel 4.63 5.05 5.63
Total Renewable Fuel 17.13 18.84 20.63

Researchers at the U.S. Department of Energy’s Argonne National Lab released an updated analysis of greenhouse gas (GHG) emissions for biodiesel and renewable diesel production from various feedstocks, including canola. Overall, the analysis reinforces the emission benefits of these biofuels when replacing petroleum diesel. This updated analysis finds that biodiesel and renewable diesel can reduce GHG emissions by 64 to 86 percent relative to petroleum diesel. Notably, it finds biofuels produced from tallow and used cooking oils are lower than previous estimates. Canola fares better than most feedstocks.

The California Air Resources Board (CARB) is evaluating scenarios for achieving economy-wide carbon neutrality by 2035 and 2045. The one recommended by CARB would maintain an important role for biofuels rather than full electrification. CARB’s modeling assumes at least 2.4 billion gallons per year of biomass-based diesel being produced in or imported into California starting in 2025 and remaining through 2045. This represents a doubling of current consumption rates. Clean Fuels Alliance America (formerly the National Biodiesel Board) submitted joint comments with the California Advanced Biofuels Alliance supporting CARB’s move away from draconian alternatives.

 Crop protection products are facing challenges on several fronts. This month, the Supreme Court declined to hear industry appeals of two lower court rulings (Hardeman and Pilliod cases) against glyphosate. Meanwhile, juries in Missouri and Oregon voted in favor of Bayer. There have now been seven jury verdicts – three for plaintiffs and the last four consecutive verdicts in Bayer’s favor. Non-governmental organizations (NGOs) are also challenging the EPA’s interim registration decision on glyphosate. In January 2020, as part of its routine registration review of glyphosate, the EPA published its interim favorable decision. In March 2020, a group of NGOs filed petitions with the U.S. Court of Appeals for the Ninth Circuit challenging the EPA’s decision. On June 17, the court issued a split ruling on the NGOs’ petition. Most notably, it vacated the human health portion of the EPA’s interim determination and remanded it back for “further analysis and explanation” that glyphosate is safe for use and not carcinogenic. Current glyphosate product registrations remain in place and growers can continue to use the products based on label instructions.

On June 16, the EPA released three final Biological Evaluations (BEs) for the neonicotinoid insecticides clothianidin, imidacloprid and thiamethoxam. These products are currently undergoing routine registration review by the EPA. As part of the review, endangered species assessments (ESAs) are being conducted. BEs are the first step in the ESA process and the EPA will now consult with the U.S. Fish and Wildlife Service (FWS) and National Marine Fisheries Service (NMFS) to decide if additional protective measures are needed. Registrants, grower groups and others will continue to have opportunities to participate in this process to help ensure any new measures proposed by the EPA are fully informed based on sound science and actual use. BEs are based on highly conservative assumptions and do not conclude that current uses of these insecticides have impacted any endangered species. Instead, and as an example of the highly conservative nature of the evaluations, the EPA’s method includes the highest labeled use rates and maximum usage footprints allowed based on current labels. In the majority of instances, this results in endangered species receiving “may affect” determinations but the products are still approved for use. None are taken off the market and therefore, do not impact sales. This process will continue through 2025 and could trigger additional protective measures on existing labels.

The USCA joined 14 agricultural groups on comments submitted to the USDA about the benefits and potential of biotechnology, urging continued efforts to streamline regulatory barriers that are stifling innovation.

Agronomy

The USDA National Agriculture Statistics Service’s (NASS’s) June 30 acreage report pegged planted canola acres at slightly more than 1.9 million acres, down 194,000 acres or 9 percent from 2021. However, the NASS stated that “excessive rainfall had delayed planting at the time of the survey, leaving a portion of acres still to be planted” in the Northern Plains and it will collect updated information on 2022 acres planted to canola and other crops in the region. If the newly collected data justify any changes, the USDA will publish updated acreage estimates in its crop production report to be released on Aug. 12.

“It’s now been 24 years since herbicide-tolerant canola was first approved in the United States,” notes Dr. Brian Jenks, weed specialist at the North Central Research Extension Center of North Dakota State University. “The ability to control weeds in canola with post-emergence broadleaf herbicides revolutionized canola production.” Still, weeds are weeds and they need careful management as well as herbicide systems to prevent weed resistance. He provides a list of tips to help growers do just that in this month’s USCA Blog.

Biodiesel Magazine looked at the growing demand and acreage of other mustard family crops, including CoverCress, camelina and carinata.

Is it worth spraying sclerotinia after a drought? Chris Manchur, agronomy specialist and sclerotinia lead with the Canola Council of Canada, says you need to consider the environment, including the microclimate. North Dakota State University, Northern Canola Growers Association and Minnesota Canola Council have a Sclerotinia Risk in Canola Forecast Program running throughout July with: 1) a map that uses weather information to estimate risk of disease development throughout the canola-growing area; and 2) a risk calculator that combines cultural practice information and field history of sclerotinia with weather information from the nearest NDAWN station.

 

Nutrition

Canola oil and flowersCanola isn’t just food for people: canola meal is great for livestock and farmed fish. That’s because it has an excellent amino acid profile and it’s rich in vitamins and essential minerals. Studies have also shown that feeding cows canola meal can increase their milk production by up to one liter per day!

Other Country News

The food versus fuel debate is resurfacing in Europe and this is bad news for canola growers in Australia and Canada. Nick Goddard, executive officer of the Australian Oilseeds Federation, believes that demand for biodiesel will drop off as more Europeans opt for electric vehicles. However, there is new demand for maritime and aviation vehicles that may offset losses.

Two semi-trucks in Alberta caught fire, setting one rig’s canola load on fire. One truck was carrying canola meal and the other was canola oil, but it is unclear how much product was lost in the fire. Luckily, no one was injured.

Australian canola farmers are replacing barley crops with canola as experts expect acres to sore by 21 percent this year or 8.97 million acres. The increase is due to the confluence of great prices and seeding conditions at the time of planting and could pose some stiff competition to Canadian growers.

Wet weather in the Canadian Prairies could cause Canadian canola yields to continue to drop. Canola is already expected to drop 7 percent this year and oilseed crops are critical this year with increased demand from countries like China.

Latest Industry News

Canola oil will take to the skies! The Australian Sustainable Aviation Fuel Partnership was signed into effect by Qantas Group and Airbus. The airline companies plan to invest up to $200 million to accelerate the establishment of a sustainable aviation fuel (SAF) industry in Australia. The partnership, which will initially run for five years starting in 2022, will invest in locally developed and produced SAF and feedstock initiatives.

Following planting at its Minnesota Canola Production Centre, the Minnesota Canola Council will host its 2022 Crop Field Day & Golf Scramble on Wednesday, July 20 in Roseau as of 9:45 a.m. The event will feature a variety of canola trials. Interested participants can register here!

The Minnesota Canola Council will also host a Canola Field Day on Tuesday, July 26, from 3 to 5 p.m. on the Steve Rodke Farm near Hawley. Participants will enjoy a crop walk, followed by presentations on the farm.

About the USCA

The USCA will hold a special in-person meeting in Minot, N.D., July 7-8 and its autumn board meeting in Scottsdale, Ariz., Nov. 9-11. More on UScanola.com.

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