Canola Discussion

[agstar77]

And that is why there will be less canola grown this year. 10 barely covers cost in a good year.

[charliep]

Which raises the question about what will be grown. I would be interested in what you are seeing in your businesses in terms of gross margins for different crops. Everyone highlights what they won't grow but I have to ask what they will grow. Are these crops really than much more profitable?

I also highlight caution is you are growing smaller production crops with more limited markets. If is quite easy to over produce your demand base with the impact a severe drop in prices.

I also caution that volume driven metrics/performance measures have trained grain companies and railways the benefits of selling and working logistics on high volume generic crops - read canola and wheat. Better margins/simpler logistics than trying to move smaller volumes crops (particularly within North America). Like it or not, the system knows how to handle large volume generic crops.

[crusher]

Charlie, I think you bumped your head before making that last comment on them knowing how to effectively handle large generic crops.

I got filled this morning. Net $12. Off to Phoenix tomorrow, even though the forecast is sketchy..

[freewheat]

Charlie, on my farm, the only crop that nets LESS than canola, appears to be feed barley.

CPS wheat at feed prices, Faba beans, Canaryseed, Oats.

Not only do those crops offer a better return at average long term yields, but they are FAR less risky, and cheaper, sometimes much cheaper to grow.

Canola is not what it once was. One must look at the net, not the gross potential. To have canola perform, you need to put much more into it than most other crops.

That is using 10 dollars even for canola, btw.

For me, it is a mere rotational crop. Sure, you I could hit a home run and get 55 or 60, it has happened before: But it HATES wet conditions, it simply costs far too much to grow for the potential return, using average prices...

[Hopperbin]

Agree freewheat and many farmers in canola country here have seen what can happen just this last year. Many 10 bushel crops by the look of them. 10 times 10 is 100. Now pay for expenses. It gets ugly.

[BTO_farmalll]

CharliePee - " Like it or not, the system knows how to handle large volume generic crops."


Ohhhhhh Man, Oh Man, Oh Man, Ohhhhhhhhhh Man!!!!!!!!!!


You Know What, I Aint Even Gunna Waste My Time Replying To This Bullshit Comment!!!!!!!!!

Enjoy Retirement Ya Old Geezer!!!!!!!

[jake550]

Charlie asked what price for canola based on today's land price.... $15.00/bushel would be closer to justifying land prices than $9.50. At $9.50 you have to do a lot of lying to yourself it's gonna even come close to break even.

[sawfly]

i know areas are different than here.
but a 40 something yield i would take every year.

30-34 would be closer to average.
at those yields at $9.00 you did a lot of work for nothing .

rent is now based on 12-14, fert
same thing.
and seed costs based on a 80 bushel crop somewhere.
we are now at the price levels
where a poor crop can result in 100s of thousands in losses in one year.

and all the crooks are are paid upfront. we are all in.
to sign up for 10$ canola is asking for a crop failure.

[SASKFARMER3]

So almost time to haul canola approaching 11 ah now I'm happy! Just home in time!

[farmaholic]

SF3, All your canola go to Yorkton? $pecialty or geriatric? What are the current crusher bids there.