The cost of canola seed has increased significantly over the past few years.
‘Based on the average yearly price, a farmer seeding canola at 5 pounds per acre will incur a per acre seed cost of $63 to $71 depending on herbicide system,’ says Ryan Furtas, market analyst with Alberta Agriculture and Forestry.
‘This makes seed the second highest operating expense after fertilizer, which ranges from $65 to $90 per canola acre seeded, and is well ahead of chemical at $30 per acre.’
Alberta’s most popular canola brands, Round Up Ready (RR) and Liberty Link (LL), both saw price increases in 2020. Round Up Ready increased by 29 cents per pound and Liberty Link increased by 27 cents per pound.
RR and LL herbicide tolerant systems represent more than 95% of Alberta seeded canola acres.
Source: Alberta Agriculture Farm Input Survey
‘Looking at the average growth rate of Alberta canola seed prices, the Liberty Link price increase amounted to 1.96% and Round Up Ready increased by 2.36%,’ says Furtas. ‘Annual price increases for canola seed have been a trend for sometime. However, the 2020 increases were more comparable to 2016 and 2017 versus the larger increases seen in 2018 and 2019.’
Furtas adds high yields and relatively strong market prices in recent years have helped support canola’s profitability as a cash crop.
‘If canola prices continue to be strong into the fall of 2021, canola seed prices could be poised for further increases,’ says Furtas.
Source : alberta.ca