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Agricultural News

Industry Anticipates Canola Limiting Factor for 2011 in Oklahoma Will be Seed- 200,000 Acres May Be Possible

Fri, 30 Jul 2010 6:22:13 CDT

Industry Anticipates Canola Limiting Factor for 2011 in Oklahoma Will be Seed- 200,000 Acres May Be Possible With thanks to Dale Thorenson- here is an overview of the Canola meetings of this past week in Oklahoma and Texas.

Several hundred producers gathered in Enid, OK on July 20th to hear from Industry, University, Extension, the Risk Management Agency and experienced producers on the positives and negatives of growing winter canola, a crop that is growing in popularity in the southern Great Plains. According to the June 30th National Agriculture Statistics Service (NASS) planting report, Oklahoma and the surrounding states planted up to 95,000 acres for the 2010 crop year, almost double that of 2009. And reactions from this meeting and several other smaller get-togethers taking place in the region indicate that 2011 winter canola acreage could double again when planters begin rolling in September. However, exuberance by growers beyond this point would likely be tempered by the amount of available winter canola seed estimated to be enough to plant around 200,000 acres.

Producers reported that from Oklahoma and points south, canola yields (1,250 - 2,400 lbs per acre / 25-48 bus/ac) equaled or exceeded production of adjoining wheat fields. However, their wheat on wheat suffered from low protein and high dockage (rye grass, cheat, etc.). As a result, the prices received for their canola at times were more than double that of their discounted wheat. And producers who had been growing canola for more than one year reported that their wheat on canola yielded 10-30% more than wheat on wheat, with little dockage and higher protein.

Extension, Industry, and University participants spoke to refined planting dates for the various belts early to mid-September to early to mid-October; proper seeding depth; seed treatment; fertility; insect management; and harvest management. In short, growers were told not to plant winter canola if they intended to treat it like winter wheat. If they planted in September and didn't plan to look at the field again until late February, they were told that this was a recipe for a guaranteed failure. In short, growers were repeatedly told that understanding the management demands of the crop were extremely important.

Another topic discussed was the advances in the genetics during the past 5 years as well as lessons learned. The region has obviously gained considerable experience in growing the crop, and the feel of the meeting was quite different than when these meetings began 6 years ago.

Producers Cooperative Oil Mill (PCOM), Oklahoma City, reported on their expansion plans; indicating that they were on track to have the ability to crush production from 700,000+ acres by the 2012 crop. They were also working to identify where the acreage is planted this fall in order to establish delivery points for 2011 with local elevators where needed or viable. They would also try if possible, to get trucks to producers not near delivery points if necessary during the 2011 harvest.

Heath Sanders has accepted a position with PCOM, and will be doing the same job for the plant as he did for Extension helping those growing canola to manage their crop. (Heath has been replaced at OK Extension by two new employees, who will be doing the same.) All three will be coordinating with each other regarding insect pressure etc. during the coming growing season.

The Risk Management Agency reported that the canola policy for 2011 was being expanded into nine Oklahoma counties (Alfalfa, Blaine, Caddo, Custer, Garfield, Grant, Kingfisher, Major, and Woods) beyond their current reference county (Dewey) see OK map below. In addition, the new "Combo" policy would also extend RA coverage for canola for the first time; and would also be available for those who obtained written agreements in counties that would not have a policy. The written agreement application deadline was August 31st, and agents were already accepting applications for the 2011 crop year. Also, the RA price discovery period (based on Winnipeg futures) had begun (July 15 - August 14) and trading so far (July 27) indicated a 19.6 cent per pound projected price. The T-yield in OK for growers without a canola history was 1400 lbs. At a 75% coverage level, growers could conceivable receive $200+ gross per acre revenue protection on their winter canola for 2011. (.75*1400*.196 = $205.80). Premiums paid by the grower would be in the $11-$15 range.



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