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ECONOMIC COMPARISON OF SPRING CANOLA AND CAMELINA
PRODUCTION
Kathleen Painter and Stephen Guy
University of Idaho &
Washington State University
SLIMMER MARGINS REQUIRE SHARPER PENCILS!
Unprofitable rotational crops pull down overall profitability
However, rotations are critical to maintaining resilient, healthy crops
Diversify your cropping systems in order to spread risk Right now, grain prices are low but dry peas, lentils, and
canola prices are well above long-run averages
SUMMARY OF RETURNS BY CROP FOR
>18” RAINFALL ($/ACRE): CONV TILL
Crop Prices:$/unit:
WW $5.28SB $107.00SWSW $5.28HRSW $7.87P $0.14L $0.34G $0.38SC $0.15CML $0.18
$70
-$66
-$19
$58
$27
$149
$116
-$70
$86
-$100
-$50
$0
$50
$100
$150
$200
$/a
cre
/ye
ar
WW SB SWSW HRSW P L G SC CML
SUMMARY OF RETURNS BY CROP FOR
>18” RAINFALL ($/ACRE): NO-TILLCrop Prices:
$/unit:WW $5.28SB $107.00SWSW $5.28HRSW $7.87P $0.14L $0.34G $0.38SC $0.15CML $0.18
$69
-$41
-$14
$81
$32
$154
$121
-$50
$78
-$100
-$50
$0
$50
$100
$150
$200
$/ac
re/y
ear
WW SB SWSW HRSW P L G SC CML
SUMMARY OF RETURNS BY CROP FOR
< 18” RAINFALL, CONV. TILL ($/ACRE)
-$40
-$20
$0
$20
$40
$60
$80
$33 $31
-$35
$55
WW HRSW SB CML
$/a
cre
/ye
ar
Crop Prices:$/unit:
WW $5.28SB $107.00SWSW $5.28HRSW $7.87P $0.14L $0.34G $0.38SC $0.15CML $0.18
Crop Yields:units/ac:
WW 78 buSB 1.5 tonsHRSW 42 buCML 1400 lb
CAMELINA GROWER YIELD EXPECTATIONS
Annual cropping area, >18” ppt per year1800 lb per acre
Intermediate cropping zone, 16” rainfall1400 – 1500 lb per acre
Low rainfall zone, 14” rainfall1200 lb per acre
CAMELINA PRODUCTION Early-seeded crop Can be drilled or broadcast seeded
Valmar applicator can be used to broadcast seed and fertilizer
Low input costs $15 per acre for seed 50 lb N, 10 lb S is typical (less than $40/ac) $16 per acre for Poast plus COC
Few pest problems Rotational crop for grains in areas with few
alternatives
OPERATIONS FOR DIRECT SEED OR BROADCAST PLANTING OF CAMELINA
March Spray weeds (e.g. Roundup)
Mid-March to early April4-5 lb camelina50 lb N, 10 lb S typical fertilizer applicationUse broadcast spreader such as a Valmar
applicator or a direct seed drill May
Poast herbicide @1.5pt plus 2 pt COC ($16/ac) August
Direct combine (shattering not a problem)
OPERATIONS FOR CONVENTIONAL TILLAGE CAMELINA PRODUCTION
October Heavy harrow
March Cultivate with harrow Chisel/harrow/fertilize with ripper shooter
50 lb N, 10 lb S typical fertilizer application
Mid-March to early April Cultivate Drill 4-5 lb camelina seed per acre
May Apply Poast herbicide @1.5pt plus 2 pt COC ($16/ac)
August Direct combine (shattering not a problem)
COSTS BY NON-GRAIN ALTERNATIVE CROPS:
CONVENTIONAL TILLAGE
Seed Fert Pest Mach VC Other Mach FC0
20
40
60
80
100
120
PLGSCCML
NON-GRAIN ALTERNATIVE CROPS:REVENUE, COSTS, & NET RETURNS
P L G SC CML-200
-100
0
100
200
300
400
500
RevenueTotal CostNet over TC
COOK FARM NO-TILL TRIALS
1 2 3 4 5 6
WW
77.322104861111
1
162.64533657407
4
94.408520370370
4
104.40009131944
4
125.69345532407
4
127.45271944444
4
SW
43.326595138888
9
80.367551388888
9
-60.413043402777
7
98.679060763888
9
-19.009684027777
8
-3.7331347222222
3
Alt -69.109926666666
7
-51.119875833333
3
-87.900594333333
3
3.1520716666666
7
-66.241631666666
7
-73.994237666666
7
-125
-75
-25
25
75
125
175
Average Returns by Crop,2001-2006 ($/ac/yr)
WW
SW
Alt$/a
cre
/year
ROUNDUP READY CANOLA LOSES LEAST…
1 2 3 4 5 6
SB -48.5 6.89 -88.3 30.47 -35.6 -20.7
SC -12.1 -54.2 -62.9 79.72 -119 -74.4
SP -32.3 -125 -90.9 -36.3 -170 -150
-250-200-150-100
-500
50100
$/ac
re
Net returns for alternative crops
SB
SC
SP
WB
WC
WP
ROUNDUP READY NO-TILL CANOLA YIELDS BY GRIDPOINT & YEAR
0
500
1000
1500
2000
2500
3000
3500
4000
Spring Canola Yields by Gridpoint Cook Agronomy Farm 2001-20062001 16 ppt 2002 19 ppt 2003 19 ppt
2004 15 ppt 2005 15 ppt 2006 21 ppt
lb/a
c
Mean: 2011 lb/ac Standard Deviation: 754 lb/ac
lb p
er
acr
e
COOK FARM: EFFECT OF ALTERNATIVE CROP SELECTION ON WINTER WHEAT YIELDS
0
50
100
150
200
250
1 2 3 4 5 6
$/ac
reNet returns for winter wheat by
alternative crop in rotation
SB
SC
SP
WB
WC
WP
Years:
ROUNDUP READY CANOLA IS ECONOMICALLY COMPETITIVE WITH ALTERNATIVE CROPS
Reduces herbicide costs & weed pressure Prices were very strong earlier this year
Prices are recovering from a large decline last fall
CAMELINA & CANOLA AS ALTERNATIVE CROPS FOR DRYLAND CROPPING
SYSTEMS
Camelina yields are generally less volatile than canola yields
Input costs are lower for camelina Few insect pests Lower fertility requirements
With contracts prices of $0.18 per lb, net returns were higher than for grains in the intermediate cropping zone
Rotation may need to flex to accommodate rainfall Winter wheat/spring grain/camelina/(fallow) OR Winter wheat/camelina/fallow
LIMITED RESEARCH ON CAMELINA IN U.S.
Camelina results are based on just a few years of research and growers’ experiences in this country
Estimates of production levels and input usage will be further refined as more information becomes available
RESOURCES
EM 8953-E Camelina by Ehrensing and Guy, January 2008, Oregon State University
http://extension.oregonstate.edu/catalog
Great Plains Oil Co. website: www.camelinacompany.com
Canola price data: Northern Canola Growers’ Assoc. www.northerncanola.com
Budgets:http://csanr.wsu.edu/Publications/FarmMgmtEconomics.htm
CONTACT INFORMATION:
Kate Painter, PhDAg Economics AnalystUI AERSMoscow ID 83843-2334 Office: (208) 885-6041 Cell: (509) 432-5755 [email protected]