May 14, 2019

Dear Secretary Perdue:

The Northern Canola Growers Association wishes to express its concern that canola be included as an eligible commodity under the recently announced aid package for farmers.  Canola growers have suffered tremendous market losses as a direct result of the trade dispute with China and canola oil has now been slapped with a retaliatory tariff into China.  These market losses are negatively impacting canola growers and influencing planting decisions.

The attached chart shows how canola prices have dropped right along with soybeans.  In fact, canola prices have dropped even harder than soybeans recently due to the ban on canola imports from Canada into China due to the arrest of the Huawei executive.  This will result in ending stocks of canola nearly doubling this crop season, further dampening prices.

In North Dakota, which produced over 80 percent of the U.S. canola crop, the cash price at the ADM Velva crushing plant for canola has dropped from $17.78 on June 15, 2018 to $15.00 as of today, a decline of 16 percent. 

Using the 2018 national average yield of 1,861 pounds/acre, U.S. canola producers are facing an average loss of $51.74 per acre, equal to almost $103 million in lost revenue when applied to the 1.99 million acres of canola planted in 2018.

We therefore request that canola be included in the announced aid package as an eligible commodity so that canola growers can recoup a portion of the lost revenue as a result of the ongoing trade dispute with China.

Thank you for your consideration of our request.


Barry Coleman

Executive Director

CC: Deputy Secretary Steve Censky

        Under Secretary Ted McKinney

Posted in: NCGA News.
Last Modified: May 15, 2019