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NCGA Requests Canola Be Included in Aid Package

Posted: Sep 03 2018


The Northern Canola Growers Association has sent in a request to the North Dakota delegation that canola be included as an eligible commodity under the proposed $12 Billion Aid Package that was announced recently by USDA Ag Secretary Sonny Perdue.  Canola prices have dropped significantly recently along with soybeans in reaction to the trade dispute with China.  While canola has not had a tariff imposed upon it, canola growers are still suffering the same drop in revenue and inclusion of canola would be equitable for growers.  Below is the text of the request:

The Northern Canola Growers Association wishes to express its grave concern that canola has not been listed as an eligible commodity under the proposed $12 billion aid package.  We assume that one of the reasons is that canola has not had a tariff imposed on it.

While it is true that a tariff has not been imposed on canola by any major importing countries, this does not mean canola growers have not seen severe negative impacts to their bottom lines as a result of the vicious drop in canola price.  Historical prices prove the strong relationship between canola and soybean prices and as the soybean price has dropped, so has canola.

Trading Graph
 

Local cash prices at ADM Velva for new crop canola dropped from $17.31 on June 1 to $15.21 by mid-July.  Based on an average yield of 1,850 pounds/acre, canola growers will receive $38.85 less per acre.  This means a revenue loss of $64 million for North Dakota canola growers!

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

Thank you for your consideration of our request.


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