Disappointed with responses for canola oil content!!

[OneOfMany]

Come on! I thought we were better then this!

Why is everyone afraid of being paid for oil content? Why do we we want to leave money on the table? We all strive to produce other top quality grains so why do we not want the opportunity to produce top quality, high oil content canola? And be rewarded for it.

Perhaps we should resurrect the wheat board and have them do away with payments for protein, because you know, someone might have low protein, and that's just not right.

Send in your samples to the Canadian Grain Commission, they will tell you your % of oil. FWIW mine came back at 45.9%.

[tweety]

One farmer premium is another farmers discount. Peace country has way more oil then Manitoba. So guess who votes for and who votes against paying for oil?

Also, exporters don't get paid for oil, and we all know they don't lose money, so no, it is never going to happen.

[SASKFARMER3]

Sorry its just another way for them to play games and discount our price.

Oh you Mr Farmer couldn't grow what we needed for oil content so this year its a $1.00 bushel discount. I know the weather was against you but thats the rules. that would be the new song sheet from the elevator companies.

Keep it simple stupid. K I S S method.

[farmaholic]

Is this a Pandora's Box you really want to open? Maybe while they're at it they can pull out the tweezers and magnifying glass and pick out all the inseperables and down grade you or add it to dockage.

Is the reward worth the risk?

Remember my stick analogy.

Canola's value isn't derived from oil alone, albeit that is it's main purpose.

No sarcasm intented.....I challenge you to take a sample of your 45.9% oil canola seed to a domestic crusher and see if you can negotiate a premium. Depending on what they consider average(?), you are about 8-10% higher oil content....see if they are willing to pay a premium and report back to us. If you don't ask for a premium they certainly won't volunteer it.

I see your point but sometimes we have to be careful what we ask for.....remember the stick analogy!

[Braveheart]

When Northstar Agri was the owner at Hallock, MN, they were paying an oil premium. Northstar identified varieties with higher oil content and paid a 5% premium for it. They called the program, "The Star Grower Program".

We grew L252 for Northstar and the premium. Part of our obligation was to to go online and enter agronomic information. They were obviously gathering info for best practices re oil content.

I felt the reward was worth the small effort on our part. It was a good program if the selected varieties were suited to your farm.

If a crush plant wants to increase efficiency and share that value with me as a grower, giddyup. I like it voluntary though. I like to see a company try to gain a competitive advantage with an oil bonus.

There are many moral hazards with making oil content industry standard, the biggest being encouraging variety selection in areas unsuited for that variety just for premiums.

CHS has bought Northstar and as far as I know has discontinued the Star Grower program.

[farmaholic]

Braveheart..... what was the base oil content.

I just checked my CGC harvest sample results and mine came in at 42.7.

What agronomic practices increase seed oil content. I bet later swathing might help?

I'm all ears....

[Robertbarlage]

In 5 years no one will grow any more canola #thingofthepast

[SASKFARMER3]

i still think Canola has a place but as beans move and prove they can work in the North acreage will change.

My theory is still this on 10000 acres
3500 Wheat for filler
3500 Canola for cash
3000 beans

What will be dropped.

PEAS OATS BARLEY AND DURUM in our area.

[Braveheart]

There was no base on Star Grower. It was variety specific. IN L252 and I think one Dekalb variety. It was paid on up to 25 bpa. I think if you did variable rate there was an additional 1% up to 25 bpa.

[Braveheart]

We never got feedback on best practices. Program ended with CHS.

[northfarmer]

Is a canola sample with higher oil content reflected with a higher bushel weight? If it is, is this how we are compensated for higher oil? just curious

Look for years I never got paid for protein in my wheat and I am certainly not sure it made a difference in my net returns. I have always focussed on yields and grade quality. Now I have to contract a reference grade and protein level and get what the machine tells me I have.

Seems once that decision was made everyone had to buy on that parameter whether they liked it or not, I believe it was a regulatory change.

Those regions that purportedly have lower oil contents like the more southern latitudes can grow corn and soybeans and other broad acre crops that do not fit in our geography.

Seems to me that if my region can typically grow markedly higher oil content canola and that is the driver of the crush than why the product cannot be further segmented and priced accordingly.

When we had a crush plant in our region, by the way that facility and siding has now been converted to ship hydrocarbons in it's new life, I believe if my memory serves me correct we were paid an oil premium. This was some 30 years ago or so at the start of my career so those slips are long in the burn barrel.

On the wheat issue what drove the change to pay for protein. Areas that consistently grew higher protein wheats that lobbied to be paid for it?

Seems on our farm we pay a lot of levy on canola and when I have asked for an explanation on this issue from those that collect it I never get a satisfactory answer.

Is it another one of those questions that gets answered by the question of "follow the money?".

[ianben]

Here is UK standard terms for oilseed ****/canola

OIL BASIS 40% Premium of 1.5% of contract price for each 1% over 40%
Penalty of 1.5% of contract price for each 1% under 40%

MOISTURE BASIS 9% MINIMUM 6% Premium of 1% of contract price for each 1% under 9% down to 6%
Penalty of 1% of contract price for each 1% over 9% up to 10%
Buyer has the right to reject a parcel with over 9% or under 6% moisture content

ADMIXTURE BASIS 2% MAXIMUM 4% Premium of 1% of contract price for each 1% under 2% down to zero
Penalty of 2% of contact price for each 1% over 2% up to 3%
Penalty of 4% of contract price for each 1% over 3% up to 4%
Buyer has the right to reject a parcel with over 2% admixture content

I like it most years way above 40% once had 48.9 it sure adds up then.

Plant breeders now select on oil as well as yield so oil has gone up over time.

There is quite a variation between varieties and also between years both can vary by 5%. 16 is a low oil year here ours is 42% but will still add £10.50/tonne at £350
15 oil was 46% same variety just more sunshine in June, sold at £280/ tonne so oil bonus £25.20.

[MBgrower]

Sk3 id recommend you try several varieties with varying maturities. U wouldnt want to lose 3000 ac to early frost.

[fjlip]

Here is UK standard terms for oilseed ****/canola

OIL BASIS 40% Premium of 1.5% of contract price for each 1% over 40%
Penalty of 1.5% of contract price for each 1% under 40%

MOISTURE BASIS 9% MINIMUM 6% Premium of 1% of contract price for each 1% under 9% down to 6%
Penalty of 1% of contract price for each 1% over 9% up to 10%
Buyer has the right to reject a parcel with over 9% or under 6% moisture content

ADMIXTURE BASIS 2% MAXIMUM 4% Premium of 1% of contract price for each 1% under 2% down to zero
Penalty of 2% of contact price for each 1% over 2% up to 3%
Penalty of 4% of contract price for each 1% over 3% up to 4%
Buyer has the right to reject a parcel with over 2% admixture content

I like it most years way above 40% once had 48.9 it sure adds up then.

Plant breeders now select on oil as well as yield so oil has gone up over time.

There is quite a variation between varieties and also between years both can vary by 5%. 16 is a low oil year here ours is 42% but will still add £10.50/tonne at £350
15 oil was 46% same variety just more sunshine in June, sold at £280/ tonne so oil bonus £25.20.

That all sounds great! Lucky you! Our CGC sample result was 47%, get SFA for it in Canada!
Early combined was as dry as 6%, NO premium for it either! Would have been a 13% premium in UK!

[mcfarms]

Did some work on getting both oil content and as dry matter looked at through the CGC a number of years ago, Didn't get much support from either line companies nor canola commissions.