School of Economic Sciences

Farm Management

Economics of Spring Canola Production in Dryland Eastern Washington

Canola Production

April 2006

EB2009E Full Bulletin
Excel File - Appendix Tbls

By Kathleen Painter, Herbert Hinman and Dennis Roe*

Demand for oilseed crops for biodiesel production promises to be strong due to recent legislative and commercial developments. This study calculates break-even crop prices for a range of oilseed production levels across a wide region of dryland crop production in eastern Washington . Appendix tables provide detailed costs of production for each crop and rainfall zone. These tables include both variable and fixed machinery costs as well as land rent expenses using a traditional cost-share arrangement.

These appendix tables are available as spreadsheets in electronic format, available online from http://www.farm-mgmt.wsu.edu/ (type canola in the search bar) or from http://cff.wsu.edu/Publications/ under Enterprise Budgets. Growers can alter the input prices, yields, and other information to tailor the costs to their operation. Given the recent fluctuations in fertilizer and fuel prices, producers will need to be able to adjust these input costs in their budgets. March 2006 prices in Table 1 were used to conduct this analysis.

Cover EB2009E

In order for canola to be economically viable in the eastern Washington production area, prices received by producers will need to increase over current market levels. Since over half of all farmland is rented, landlords will also play an important role in the adoption of new rotational crops. Under the assumptions of this study, net rent is lower than for most other rotational crops in this region, so landlords may be unwilling to forego this reduction in rent. Policymakers may need to create positive incentives for widespread adoption of oilseed crops in the dryland region of eastern Washington.

*Kathleen Painter is an analyst with the Center for Sustaining Agriculture and Natural Resources and Herb Hinman is an extension farm management specialist, both with Washington State University . Dennis Roe is a resource conservationist, Natural Resources Conservation Service/USDA, and adjunct crop scientist with the Department of Crops and Soils, WSU.

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