Winter Canola Offers New Income Potential to Mid-South Farmers

The oilseed could be a fit now for growers in Arkansas, Kentucky, Missouri, Tennessee, southern Illinois, and parts of Alabama and Mississippi. Bunge Chevron Ag Renewables is offering a 2024/25 production program.

people in canola field.jpeg
people in canola field.jpeg
(Corteva Agriscience)

Sometime in the next two or three weeks, Brandon Whitt says his winter canola crop will be ready to harvest.

In North Dakota, where the bulk of the popular oilseed is grown in the U.S., this would be nothing unusual. But Whitt is based in central Tennessee, a part of the mid-South where corn, cotton, soybeans, wheat and hay crops rule.

Winter canola might soon be added to the list, thanks to a joint venture between Bunge and Chevron (Bunge Chevron Ag Renewables) and Corteva Agriscience. Corteva (Pioneer) offers canola seed and is providing farmers with agronomic support.

The companies are working with about 20 farmers in Tennessee and Kentucky this year to give winter canola a leg up in the region. The crop could provide an additional revenue stream for growers there and help meet the increasing market needs for renewable fuel.

Western Kentucky and Tennessee are what Chad Berghoefer calls the “current epicenter” in the mid-South for winter canola production.

“From there, we could see it being grown about 150 to maybe 200 miles from that point – up into southern Illinois, down into northern Alabama, Mississippi, and over into Arkansas and Missouri as well. Those will be the number of states, as we grow out the project year over year,” says Berghoefer, global product director of biofuels for Corteva Agriscience.

The three company partners estimate winter canola acreage could go from the 5,000 acres in production this year in Kentucky and Tennessee to millions of acres across their target region within the next decade.

Farmer Preserves The Past, Embraces The Future

Whitt says when he was approached by his Pioneer field agronomist, Kyle Holmberg, about trying winter canola, he was excited to give it a go on his family’s eighth-generation operation, Batey Farms. The farm was established in 1807.

The prospect of growing winter canola fit well with the family’s motto, “preserving the past and embracing the future.”

With that in mind, Whitt ripped out a 6-acre field of U-pick strawberries on his farm, located along a highway near the city limits of Murfeesboro, Tenn., population 162,000. He planted the small plot, which is considered a research location for the mid-South, last September.

“We wanted to put this in an area that the general public could see and ask questions about what winter canola is and what we’re doing with it,” Whitt says.

The crop garnered considerable local attention from passersby when it flowered this spring. Some local high school graduates took their senior pictures in front of the crop. In another instance, at least one couple took some of their engagement pictures in the field, using the crop as a backdrop.

Whitt says the crop has been “pretty easy” to manage. His experience with wheat and barley made growing canola a similar experience.

“It’s really not very different as a winter crop for us,” he says.

Pioneer has provided production guidelines for winter canola here.

The Status Of Canola In The U.S.

Farmers currently grow about 2 million acres of canola in the United States, according to the U.S. Canola Association (USCA).

There are two types of canola: spring and winter, named as such for when they are planted. Spring canola is planted in early spring (March) and harvested around September. This type accounts for the majority of U.S. canola production, the association reports on its website.

Winter canola is planted in September. It overwinters and is then harvested in late May or early June. Typically, winter canola will yield 20% to 30% more than spring canola.

In the U.S., the ratio of supply versus demand of canola oil is about 1:4, which presents a huge opportunity for farmers to grow more canola, USCA says.

The biofuels market could potentially be even more significant. In 2021-22, the association says approximately 1.4 billion pounds of canola oil were used annually in biofuels.

Profit Margins And Logistics Play Important Roles

One potential hiccup for farmers in newer production areas is getting the crop to market. That’s a factor for the Whitt family.

“I’d definitely like to expand the crop acreage, but logistics will come into play,” says Whitt, whose 1,800-plus acres of crops currently include non-GMO yellow and white corn, barley, wheat, oats and soybeans.

He says the current delivery point Bunge has available this first year of the program is too far from his farm. However, he adds, he is hopeful Bunge will add a delivery location in northern Alabama.

“If that happens, then the sky’s the limit for growers in my area to add winter canola into their production as an alternative crop,” he says.

If Whitt decides to grow canola on a large scale, he anticipates using it in a double-crop practice. This year, for example, he plans to plant either sunflowers or soybeans after the canola is harvested.

“We always try to find ways to evolve as farmers,” Whitt says. “I’m producing crops to make money and also because of the passion we have to feed, clothe and fuel our community around us and our world. I think this is one of the best projects I could be involved with right now.”

Looking forward, Whitt says he looks forward to learning more about winter canola. “I’m really curious to see the project through its fruition, to understand better how to grow it, and how do we manage the crop as a quality grain moving forward to get it to the end market.”

Winter Canola Program For 2024/25

The three partnering companies – Corteva Agriscience, Bunge and Chevron – say there are five potential advantages for farmers who participate in their winter canola program:
1. Increased total farm profitability
2. The opportunity to participate in the growing renewables feedstock market
3. Improve soil through plant diversity and water filtration
4. Maximize productivity through a multi-year crop rotation
5. Access to federal crop insurance for qualified participants

Farmers who want to participate are able to contract acres of production at a fixed price based on the July 2025 Canola Futures, +/- local area basis. ‘Act of God’ clause is included and additional pricing alternatives are available, according to literature the companies have developed jointly.

Growers will deliver all canola production to a river loading facility and get paid by Bunge Chevron Ag Renewables. Grain delivered is subject to quality grading standards.

Pioneer has provided production guidelines for winter canola here.

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