Canola Quick Bytes
A supplement to U.S. Canola Digest
The final rule on canola renewable diesel and related biofuel pathways for Renewable Fuel Standard (RFS) eligibility has been sent by the U.S. Environmental Protection Agency (EPA) to the Office of Management & Budget (OMB) for clearance. If cleared by the OMB, the final rule will be published in the Federal Register and allow renewable diesel, jet fuel, naphtha, liquified petroleum gas and heating oil produced from canola oil to generate credits under the RFS. The U.S. Canola Association and industry partners will meet with the OMB on Sept. 30 to reiterate its support and urge prompt approval of the final rule.
On Sept. 12, President Joe Biden signed an executive order on “Advancing Biotechnology and Biomanufacturing Innovation for a Sustainable, Safe, and Secure American Bioeconomy.” The order seeks to “bolster and coordinate federal investment in key research and development areas of biotechnology and biomanufacturing in order to further societal goals.” It calls on the U.S. Department of Agriculture to submit a report on “how to use biotechnology and biomanufacturing for food and agriculture innovation, including by improving sustainability and land conservation; increasing food quality and nutrition; increasing and protecting agricultural yields; protecting against plant and animal pests and diseases; and cultivating alternative food sources.”
The state of Washington is poised to implement a Clean Fuel Standard following a public comment period that ended Aug. 31. The new standard, which will take effect on Jan. 1, 2023, aims to incentivize fuel suppliers to reduce the carbon intensity of transportation fuels by 20 percent by 2038. It calls for a 15 percent net increase in liquid biofuel production in the state and offers suppliers multiple ways to comply with required greenhouse gas emission reductions, such as improving production processes and blending with low-carbon fuels. Major biofuel stakeholders submitted a range of suggestions to improve the proposed legislation. BIO is urging the use of updated science on indirect land use changes for canola and other plant-based biofuels as well as input from canola and other crop producers in the development of clean fuel legislation in order to consider agricultural carbon reduction practices, such as no tillage, in calculating carbon-intensity scores.
The EPA announced on Sept. 28 that it will not regulate the use of pesticide-treated seeds under the Federal Insecticide, Fungicide, and Rodenticide Act in response to a petition filed by the Center for Food Safety with and on behalf of beekeeper, farmer, and public interest groups in April 2017. That’s because the agency already fully assesses, as part of its review of a pesticide registered for treating seed, both the use of the pesticide and treated seed and their impacts to human health and the environment. This is based on two regulatory conditions: 1) the treating pesticide is a FIFRA section 3 product registered for use as a seed treatment for the specific crop and 2) the treating pesticide and treated seed are distributed, sold and used consistent with registered product labeling. However, the EPA is looking into whether these seeds are being labeled, distributed, sold and used appropriately. It intends to issue an advanced notice of proposed rulemaking on whether or to what extent pesticide-treated seed is being distributed, sold or used in a manner inconsistent with treating pesticide labeling.
How can you prevent seed toxicity in canola? Ken Wall, a grow team advisor with Federated Co-operatives Ltd, says canola seed tends to be more sensitive to nitrogen and seed toxicity than other crops so growers need to take “extra precautions when determining application rate and type.” Dryness, salinity, and the type of fertilizer applied impact the crop’s toxicity as well.
If you plan to straight-cut canola this year, start small and early to allow time for natural drying and make sure that straight-cutting fits into your current system, advise Country Guide staff. In addition, work with shatter-resistant varieties and note that harvest timing still plays a large role in crop quality. More tips are in PAMI’s Guidebook for Straight Cutting Canola.
Did you know the essential micronutrient boron is needed to grow high-yielding canola? Erika Dowling, technical sales manager at Mosaic Company, says soil sampling is going to be a “key part of the micronutrient story, as that’s where deficiencies will show up” and it’s important to have boron as it has synergies with other nutrients.
The White House Conference on Hunger, Nutrition and Health on Sept. 28 addressed the Biden administration’s goal of ending hunger and increasing healthy eating and physical activity by 2030 in America. “The consequences of food insecurity and diet-related diseases are significant, far reaching, and disproportionately impact historically underserved communities,” the White House stated in a summary of its National Strategy on Hunger, Nutrition, and Health. “Yet, food insecurity and diet-related diseases are largely preventable, if we prioritize the health of the nation.” The strategy includes five pillars: 1) improving food access and affordability; 2) integrating nutrition and health; 3) empowering all consumers to make and have access to healthy choices; 4) supporting physical activity for all; and 5) enhancing nutrition and food security research. Private companies have committed $8 billion in funding to help the White House reach these goals. However, the conference was deemed partisan by critics and surprisingly under-represented by agricultural groups in spite of the USCA and other entities pointing this out in a letter to President Biden on Sept. 8.
Did you know that canola oil is a good source of vitamin E? One serving of canola oil provides adults 16 percent of their recommended daily intake of vitamin E, a nutrient that can fall short in the American diet. Vitamin E is a powerful antioxidant that may help protect the heart. Learn more about canola oil nutrition from the USCA.
Other Country News
The World Trade Organization has suspended a dispute settlement panel tasked to settle a battle over canola seed between Canada and China. Following the arrest of a Huawei executive on Canadian soil in 2019, a trade war ensued and China banned the importation of Canadian canola seed. In 2022, China resumed imports. With tensions lower, Canada requested the suspension of WTO intervention, which ended Aug. 30.
Global canola/rapeseed production in 2022-23 is forecast to reach a record high with Australia and Russia expected to see larger harvests, according to the Sept. 2022 Oilseeds: World Markets and Trade report by the USDA’s Foreign Agricultural Service. It predicts worldwide canola/rapeseed production to reach a new record level of 83.1 million metric tons.
The Canadian canola harvest is smaller than the industry and government expected this year at 19.1 million tonnes, reported Reuters. This is lower than the August estimate of 19.5 million. Experts blame dry weather conditions.
Australian canola exports are on track to exceed targets for the 2021-22 crop year at 5.2 million tonnes, notes Argus. This is up sharply from 3.37 million tonnes at the same time the previous year. Australia gained from EU demand due to a poor canola-quality rapeseed harvest in Europe and decreased oilseed supply from Ukraine. Australia is expected to compete with Canada in key markets for the foreseeable future.
Australian farmers warned tourists against taking canola selfies in their fields due to a biosecurity risk, reported The Guardian (UK). According to the New South Wales’ government Biosecurity Act, farmers must have a biosecurity management plan in place and keep a registry of visitors. “There’s a real fear about foot-and-mouth disease … and what quarantine people have been through and where they’ve come from,” noted an Australian canola farmer.
Latest Industry News
U.S. Canola Association (USCA) member Archer Daniels Midland will receive up to $90 million in U.S. Department of Agriculture (USDA) funding to incentivize thousands of producers, including canola growers, across 15 states to adopt and implement climate-smart agricultural practices and markets. The USDA is also funding Truterra’s Climate SMART (Scaling Mechanisms for Agriculture’s Regenerative Transformation) project at the same level and USCA member WinField United is a major partner. This project aims to scale climate-smart commodity production and access across 28 states.
ADM and PepsiCo announced an agreement to reduce carbon intensity on 2 million acres of farmland, starting with corn, soy and wheat farmers with the aim to expand. The companies will provide participants with technical and financial assistance with the hopes of eliminating 1.4 million metric tons of greenhouse gas emissions.
Canola crushing margins soared to $325 per tonne with a gross margin of $7.37 per bushel, notes The Western Producer. This is likely due to the forecast of another bumper Australian canola crop. In order for crush margins to return to normal levels, soybean oil prices must fall or canola prices rise.
In the Red River Farm Network’s “Canola Minute” sponsored by the Northern Canola Growers Association, Barry Coleman, the association’s executive director, reported impressive canola statistics from the USDA. U.S. canola imports and crushing have significantly increased to 1.49 billion and 5.43 billion pounds, respectively. The use of canola oil in biofuel production and food increased by about 50 million pounds each for a total of 1.3 billion pounds going to biofuel and 4.88 billion pounds to food.
It’s a “good year” for sustainable tires: Goodyear just presented a demonstration truck tire produced with 63 percent sustainable materials, including rapeseed oil, at an industry conference, according to Tire Technology International. “Goodyear is committed to the development of products and solutions that help support the ambitions and aspirations of our business partners to be more competitive, more efficient and more sustainable,” said Grégory Boucharlat, vice president commercial Europe.
A federal grand jury indicted two California men for stealing canola worth $4.8 million from international food processors. They used their now defunct train-to-truck transloading company to “deliver” canola to the processors’ customers but sold it instead to an acquaintance in Texas for livestock feed. The two men face up to 20 years in prison and a $250,000 fine.
The Pacific Northwest Canola Association (PNWCA) announced that its variety trial at Kopf Farms near Pullman, Wash., resulted in 2,415 to 2,852 lbs/acre and most of the 10 entries were not significantly different from each other. The Washington Oilseed Commission funds research projects every year from the assessments on canola produced in Washington state as does the Idaho Oilseed Commission in its state. The PNWCA encourages canola growers to provide input about what would help them or their region farm.
For the first time, the Montana Grain Growers Annual Convention and Trade Show will be jointly hosted by the PNWCA and Northern Pulse Growers Association Nov. 29-Dec. 1. Its theme will be “Brighter Days, #FarmersHelpingFarmers” and it will include an exhibition. The PNWCA is co-hosting a “meet & greet” with Shaun Haney, founder of RealAgriculture and host of RealAg Radio, on Nov. 28 at 5:30 pm to kick off the convention (check out his recording on “The Making of Hybrid Canola from Start to soil.”)
On Sept. 30, Dr. Jim Davis of the University of Idaho Brassica Breeding & Research program retired after 30 years with the program. “Jim is a nationally known authority in canola agronomics and has been heavily involved in determining best management practices for growing canola in the PNW region,” said Dr. Jack Brown, who, as director of the program, hired Davis in 1992. “In addition, he has been responsible for the PNW Winter and Spring Canola Variety Trials, combining entries for multiple seed and breeding organizations and grown throughout Idaho, Wash., Ore. and Mont.” Karen Sowers, PNWCA executive director, added: “Jim has been an invaluable asset to canola growers, industry and university colleagues in the PNW and throughout the U.S.” Read more about Davis in this month’s USCA Blog by Brown.
About the USCA
The USCA will hold its autumn board meeting in Scottsdale, Ariz., Nov. 9-11.
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