Economics of Increasing Canola Production

Economics of Increasing Canola Production David Archer USDA-ARS Northern Great Plains Research Laboratory Mandan, ND

U.S. Canola Acres

HRJ Feedstock Cost Challenge

Canola oil and jet fuel Midwest wholesale prices (USDA-ERS and U.S. EIA)

More Efficient Land Use   

Fallow Rotational benefits Double-crop or Relay-crop

Field Research Minnesota Soybean-Camelina Relay Cropping

Data from: Gesch et al.(2014). Agronomy Journal 106(5): 1735-1745.

Breakeven Modeling Analysis

Field Operations and Enterprise Budgets

ND Canola Expansion Potential

300,000 Mg Canola Increase

8,300 Mg Soil Erosion Reduction

ND Canola Expansion Potential

430,000 Mg Canola Increase

14,300 Mg Soil Erosion Increase

ND Canola Expansion Potential

505,000 Mg Canola Increase

3,600 Mg Soil Erosion Increase

ND Canola Expansion Potential

570,000 Mg Canola Increase

32,000 Mg Soil Erosion Reduction

ND Canola Expansion Potential

710,000 Mg Canola Increase

60,000 Mg Soil Erosion Reduction

ND Canola Expansion Potential

805,000 Mg Canola Increase

86,000 Mg Soil Erosion Reduction

Breakeven analysis summary  As

canola price increases, additional canola production become profitable to produce beginning in Western ND and expanding eastward.  At low levels of additional canola production, water erosion decreases, but increases at intermediate levels before decreasing as canola production continued to increase.  There is substantial spatial variation in erosion changes across the region