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Canola Quick Bytes

A supplement to U.S. Canola Digest


Capitol Hill

USCA and Coalition Advocate for Seed Oils in Capitol Hill Fly-In
In late May, USCA participated in a Capitol Hill fly-in with the Seed Oils Coalition—including ASA, NOPA, and others—meeting with over 50 congressional offices. The coalition emphasized the science-backed health benefits of seed oils, their essential role in American diets, and the economic risks of removing them from the food supply. These conversations, held just before the release of The MAHA Report, aimed to ensure that policymakers understood the vital contributions of canola farmers and the broader seed oil industry to public health and the agricultural economy.

Boozman and Thompson Express Concerns Over MAHA Commission’s Initial Assessment

On May 23, 2025, U.S. Senate Agriculture Committee Chairman John Boozman (R-AR) and House Agriculture Committee Chairman Glenn “GT” Thompson (R-PA) issued a joint statement responding to the MAHA Commission’s initial assessment. While aligning with President Trump’s vision for a healthier nation, they expressed concerns that the Commission’s findings could have a negative impact on American farmers and ranchers. They emphasized the importance of adhering to risk-based, scientific processes established by Congress. They called for the Commission to prioritize sound science, peer-reviewed research, and engagement with the agricultural community. The chairmen affirmed their commitment to maintaining the health and safety of America’s food supply through rigorous oversight and responsible policymaking. Read more: https://bit.ly/3FiLnFU

House Reconciliation Package Expands Farm Bill Programs and Ag Support
The House passed their Reconciliation bill 215-214 before adjourning for the Memorial Day recess. The bill includes several key provisions for canola producers including an increase in the Reference Price under the PLC program from the current $20.15 to $23.75 per hundredweight.  There is also an additional 0.5% annual increase for all Reference Prices starting in 2031. The package also includes increases in loan rates for several commodities, including canola, where the loan rate would rise to $11.10 per hundredweight.

The legislation also would allow producers to enroll new base acres that would be eligible for PLC or ARC coverage. The new allocation would be based on plantings from 2019 to 2023 for producers who currently do not have base or whose average planted and prevented plant acres exceed the current base acres on the farm.

Coverage under Supplemental Coverage Option (SCO) policies is increased from 86% to 90%. The bill also increases premium subsidy levels across the different coverage levels for basic and optional units. The subsidy rates are higher at lower levels of coverage. The largest increase in premium subsidy, however, is for SCO.

Additionally, $125 million in mandatory funding will be allocated annually to support research facilities for agriculture. These provisions reflect a broad effort to support agriculture through various financial and programmatic measures.

The focus now turns to the Senate to see what version of the Reconciliation package they will pass and how it will differ from the House bill.

House Reconciliation Package Includes Biofuels and Pro-Farmer Tax Relief Measures
Of great significance for canola, the measure amends the 45Z biofuels tax credit. It extends the credit through December 31, 2031 (it is currently set to expire at the end of 2027), excludes indirect Land Use Changes (ILUC) for purposes of lifecycle greenhouse gas emissions calculations and has feedstock limitation language that accommodates Canadian canola.

The reconciliation package extends 2017 tax cuts and includes key benefits for farmers: permanent stepped-up basis, higher estate tax exemptions, an increased 23% Section 199A deduction, reinstated 100% bonus depreciation for five years, and expanded Section 179 expensing up to $2.5 million.

U.S. and China Agree to Temporary Tariff Reductions
The U.S. and China have agreed to a 90-day pause on steep tariff hikes, lowering reciprocal tariffs to 10%. U.S. tariffs on Chinese goods will still include existing Section 232 and 301 duties, resulting in a minimum rate of 30%. China will cut retaliatory tariffs to 10% and eliminate recent non-tariff barriers.

EU Proposes €95 Billion in New Retaliatory Tariffs, Opens Public Comment Period
In response to U.S. tariffs on cars, auto parts, and broader reciprocal measures, the European Union has unveiled a draft list of proposed retaliatory tariffs totaling €95 billion. This initiative is separate from previous EU countermeasures to U.S. steel and aluminum tariffs, which were placed on a 90-day hold following a temporary pause by the U.S. administration. The new list targets a wider range of U.S. goods and is now open for public comment until June 10.

Key tariff updates include:

  • China: 30% tariff (10% reciprocal + 20% fentanyl-related)
  • All Other Countries (Annex 1): Reduced to 10%
  • UK: 10% reciprocal tariff remains despite trade agreement
  • Canada & Mexico: 25% on non-USMCA goods; 10% on non-USMCA energy/potash; 0% on compliant products
  • Steel & Aluminum: 25% tariff remains in place

This move signals an escalation of trade tensions and a potential expansion of EU-U.S. trade disputes beyond traditional sectors.

Senator Hoeven Reintroduces FARMER Act to Strengthen Crop Insurance and Enhance Farm Safety Net
Senator John Hoeven, a senior member of the Senate Agriculture Committee and Chairman of the Senate Agriculture Appropriations Committee, has reintroduced the Federal Agriculture Risk Management Enhancement and Resilience (FARMER) Act. This legislation aims to bolster the farm safety net by making higher levels of crop insurance more affordable for producers. Key provisions include increasing premium support for higher coverage levels, improving the Supplemental Coverage Option (SCO), and allowing flexibility between enhanced crop insurance and participation in Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) programs. The bill is supported by a broad coalition of agricultural organizations and is intended for inclusion in the upcoming farm bill. Read Senator Hoeven’s letter: https://bit.ly/44wavmB

Clean Fuels Applauds Bipartisan Congressional Letter Supporting Robust 2026 RFS Volumes
Clean Fuels Alliance America praised a bipartisan letter from 28 House members urging President Trump to set the 2026 Renewable Fuel Standard (RFS) biomass-based diesel volume at 5.25 billion gallons, with increases in subsequent years. The letter emphasizes benefits such as lower fuel prices, job creation, and support for farmers, while calling for the rejection of small refinery exemptions to maintain demand for biofuels. Read more: https://bit.ly/452yla2

Agronomy

EPA Finalizes Insecticide Strategy
The U.S. EPA has finalized its Insecticide Strategy after incorporating feedback from agricultural groups, making key updates from the draft version. Notable changes include reduced spray drift distances, added flexibility for spray drift reduction (especially for airblast applications), and new runoff mitigation options such as anionic polyacrylamide (PAM). The strategy also increases mitigation relief for high-sand soils, clarifies runoff-related mitigation options, and updates guidance for growers participating in qualified runoff/erosion programs. Additionally, a new PULA targets generalist species in wetlands for focused mitigation.

Mitigation measures are organized into categories like application parameters, field characteristics, in-field and adjacent-field measures, runoff capture systems, and others. Growers can automatically receive mitigation relief points based on local pesticide runoff vulnerability (medium, low, very low). The EPA plans to offer more mobile-friendly tools for calculating mitigation points and to recognize certain conservation programs for up to 9 points. Both the insecticide and herbicide strategies will take effect once included on product labels. Learn more: https://bit.ly/43m44l5

Nutrition

Seed Oils Under Scrutiny: What Science Says About Their Health Impact
A May 2025 Washington Post article addresses the ongoing debate over seed oils—such as canola, soy, and sunflower—highlighting that while critics argue these oils contribute to health issues due to their processing methods and omega-6 fatty acid content, extensive research indicates they are more likely to be beneficial than harmful. The article emphasizes that concerns about seed oils promoting inflammation or chronic diseases are not supported by current scientific evidence. Instead, the focus should be on overall dietary patterns, as ultra-processed foods, rather than individual ingredients like seed oils, are more closely linked to adverse health outcomes. Read the Washington Post article: https://wapo.st/3HhAepk

Latest from Industry

Clean Fuels, Member Companies Urge EPA to Unleash Biomass-based Diesel
On May 22, 2025, Clean Fuels Alliance America, representing 48 member companies, submitted a letter to EPA Administrator Lee Zeldin advocating for an increase in the Renewable Fuel Standard (RFS) biomass-based diesel volume to at least 5.25 billion gallons for 2026 and 5.75 billion gallons for 2027. The coalition emphasizes that these targets reflect current production capabilities and investments in new capacity, aiming to bolster farm security, create jobs, and advance U.S. energy independence. A recent study highlighted that the biomass-based diesel industry supports over 107,000 jobs and contributes $42.4 billion to the U.S. economy. Learn more: https://bit.ly/3Z83mp4

New Study Shows Clean Fuels Industry Contributes to $42.4 Billion to U.S. Economy
A recent study commissioned by Clean Fuels Alliance America reveals that the U.S. biomass-based diesel industry generated $42.4 billion in economic activity in 2024. The study, conducted by GlobalData, indicates that the industry supported 107,400 jobs and paid $6 billion in annual wages. Approximately half of this economic impact—$19.9 billion and 41,500 jobs—stemmed from fuel production. Oilseed production contributed $15.3 billion and 30,600 jobs, benefiting soybean-growing states. The study also projects that if the industry reaches a capacity of 7.4 billion gallons, it could support 145,700 jobs and contribute $60.25 billion annually to the U.S. economy. Read more: https://bit.ly/4kHXOd5

USDA Invites Farmer Stories for Ongoing Video Campaign
Secretary Rollins and the USDA are launching a continuous video campaign to showcase the diverse voices of American agriculture. Farmers, ranchers, and producers are encouraged to submit short (60-second), vertical videos sharing their personal stories and passion for farming. These videos will be featured regularly on USDA digital platforms to help connect the public with the real people behind American agriculture.

Participants are asked to speak directly to the camera and may use guiding prompts such as what they farm, where they’re located, and what inspires them. Submissions are accepted on a rolling basis and will be showcased on a weekly basis. By submitting, participants give USDA permission to use the video content across its official channels.
Upload your video here: https://bit.ly/43EN8Fg

PNW Canola Association Expands Tour Schedule with New University and Industry Collaborations
The Pacific Northwest Canola Association has added several new events to its calendar, offering more opportunities for growers, agronomists, and stakeholders to participate in canola field tours across the region. These expanded offerings are made possible through partnerships with universities and industry leaders. Check the PNW Canola Association calendar for the full schedule and locations of upcoming tours.

WA Oilseed Commission Partners with PNW Canola Association to Boost Research Outreach
At their recent quarterly meeting, the Washington Oilseed Commission (WOC) unanimously approved a partnership with the Pacific Northwest Canola Association (PNWCA). Under this agreement, 15% of WOC’s annual assessments will be allocated to PNWCA to support outreach efforts. These funds will primarily be used to share findings from checkoff-funded research through field tours, workshops, social media, and other communication channels. For more information, visit the WOC website: https://bit.ly/3FyCyru

Montana Canola Producers to Vote on Checkoff Program Supporting Regional Research
Montana canola producers will receive a ballot in June to approve a canola checkoff of $0.10 per hundredweight, matching the long-standing rate in Idaho and Washington. This checkoff has funded valuable, region-specific research that has helped improve canola production in the Pacific Northwest. The PNW Canola Association fully supports the ballot and looks forward to sharing positive results by July.

About USCA

USCA works to support and advance U.S. canola production, marketing, processing, and use through government and industry relations. Since its establishment in 1989, the association has helped domestic canola acreage grow from virtually zero to about 2 million. To learn more about USCA, go to: www.UScanola.com

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