March 19, 2012

 

Rapeseed gets top revenue for Canadian farmers in 2011

 

 

Because of record rapeseed acres and a big jump in prices, rapeseed was once again the top revenue crop for Canadian farmers in 2011.

 

Statistics Canada said Canadian farm gate receipts for rapeseed deliveries in 2011 hit CAD7.3 billion (US$7.4 billion), an increase of 30.6% over 2012 levels. The total revenue figure allowed rapeseed, a popular crop with Prairie farmers, to far outshine wheat, which came in well behind in terms of farm-gate receipts.

 

Spring and winter wheat farm-gate receipts in Canada rose to CAD4.2 billion (US$4.24 billion) in 2011 with additional durum wheat receipts bringing total wheat receipts for the year to CAD5.1 billion (US$5.15 billion). This represented an increase of 31.5% over 2010 levels.

 

Despite the gain in 2011 wheat receipts have been falling behind rapeseed receipts as more farmers put additional land into the oilseed. In 2011 Prairie farmers harvested 18.4 million acres of rapeseed and hit a year with stellar prices.

 

"Rapeseed provided Canadian growers a strong revenue outlook for 2011, which is why we saw over 18 million rapeseed acres last year," said Pat Van Osch, the board chairman of the Canola Council of Canada.

 

"Record rapeseed acres combined with strong prices and good average yields led to a 30% increase in farm gate receipts."

 

The Prairie rapeseed industry has benefited from added domestic crushing capacity and solid export markets for seed, meal and oil, said Chris Beckman, an oilseed analyst at Agriculture and Agrifood Canada in Winnipeg.

 

Beckman is forecasting another increase in rapeseed acres for 2012 that could see the planted acres in the 20 million acre range. Other forecasts have put rapeseed acres at even higher levels, he said.

 

"Where farmers grew rapeseed last year it did well. With the added crushing capacity and exports it's so far so good."

 

Beckman said the last two weeks has seen a solid rally in oilseed prices with near term contract prices for rapeseed in the CAD580 (US$585) range. The pricing outlook should keep a lot of interest in rapeseed in 2012, he added.

 

The solid farm gate receipts from rapeseed are also good for the broader economy, the Canola Council of Canada says. A report, done in mid-2011 by the council, put the financial contribution of the rapeseed industry to the Canadian economy at just over CAD15 billion (US$15.13 billion) annually.

 

The industry is responsible for 228,000 jobs with up to 43,000 farmers growing rapeseed and further downstream jobs generated in transportation, processing, crushing, marketing and research, the rapeseed council said.