Disappointed with responses for canola oil content!!

[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.

[northfarmer]

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.

Every time I ask the question of such parties I got similar responses.

Suggests that they way it works is in their favor and not up for discussion. Frustrating.

I was told last evening over beers that we are approaching the 50% level with crop harvested in our region this year from what has been tested.

I am certain most years we are leaving money on the table, especially given our much higher basis here versus areas closer to crush plants.