Canola-Rapeseed

The New Biofuel Boom? Historic RFS Mandates Drive 2 Billion-Gallon Expansion

Thu, 02 Apr 2026 17:22:41 GMT

The EPA’s finalized “Set 2” rule under the Renewable Fuel Standard is doing something rare in U.S. biofuel policy: it is not just stabilizing the market, it could jolt it.

With blending mandates for 2026 and 2027 set at historic highs , including a more than 60% jump over 2025 levels for biomass-based diesel, the rule is already being read across the industry as a catalyst for a new expansion cycle — one that could ripple from fuel producers back to soybean fields, livestock operations and emerging oilseed crops.

A Demand Shock, But By Design

“It sure feels like it,” says Matt Upmeyer, director of feedstock sourcing and strategy at Montana Renewables, when asked whether the policy signals the next biofuel boom. “We received a strong RVO, adding about 2 billion gallons of biomass-based diesel demand, and that’s a huge increase. And certainly feedstock demand is growing as well. That 2 billion of biomass-based diesel represents about 15 billion lb. of feedstock for the biodiesel and renewable diesel producers. And that really translates directly back to farm and agriculture growth as well.”

From Underperformance to Full Throttle

For an industry coming off a sharp downturn, where biodiesel production fell significantly in 2025 and facilities idled or slowed, the scale of the mandate is not just notable — it is corrective.

“I mean, I think it is realistic,” Upmeyer says of the aggressive growth targets. “The industry is poised to meet that demand. We’ve got capacity. The renewable industry, which is both biodiesel and renewable diesel, has a combined capacity of probably around 7 billion gallons. So meeting that mandate, I don’t think is a problem.”

But meeting it will require a fundamental reshuffling of how feedstocks move through the system.

“We will definitely see some changes and shifts in the feedstock flows,” he says. “We talked a little bit about the soybean oil increase and the production of soybean oil through crush. I think also you’re going to see the tallow industry and choice white grease, the hog industry, as well as poultry fat — all of those are going to find their way into the renewable diesel and biodiesel in a greater way. I think we’ll maximize all of the available low-CI feedstocks, including distillers corn oil. And then from there, obviously, the demand will be filled with soy.”

That expansion does not stop at just soybeans. Upmeyer says there are other crops that stand to benefit from this newly released RFS.

“I think that as we expand the amount of biomass-based diesel we produce, we’re going to start looking to other feedstocks as well. So canola, there’s a fair amount of canola grown in the United States, and certainly our neighbors to the north are large canola producers,” Upmeyer says. “I think that will become an integral part of what we do. And then there’s other low-CI feedstocks that are sort of on the cusp, things like camelina and different things like that will get attracted new attention right now to see how they may fit into the future mandates and production.”

If you look at the past year, biodiesel and renewable diesel facilities reportedly shut down or ran well below capacity in 2025, which led to a one-third drop in U.S. biodiesel production compared to 2024.

When asked if these new RVOs from EPA will reverse that trend and give them enough confidence to bring that production back online, Upmeyer says it should.

“The biodiesel industry got hit hard. Their production costs are higher than renewable diesel, and so they certainly felt that when we had a lower RVO under the Set 1 rule. I think we’re getting close to a point where these plants will start back up. Margins have improved dramatically.”

He adds nuance to that recovery, noting cost pressures still linger.

“Biodiesel producers have a slightly different process than renewable diesel,” he says. “They take fats, oils and greases, combine them with methanol and catalysts to make biodiesel. And methanol costs have shot up, right? So I think the marginal producers on biodiesel are still probably not super inclined to start up, but certainly the integrated biodiesel plants will be running hard. And I do believe that even the marginal biodiesel players will get a chance to restart those assets in the near term.”

A Policy Twist: The Half-RIN Question

One of the most debated elements of the rule — the proposed “half-RIN” provision for 2028 — adds another layer of complexity, particularly for feedstock sourcing and trade.

“We just couldn’t get our heads around the administrative burden that might be associated with a half-RIN,” Upmeyer says. “How do you account for feedstocks coming in from some Canadian origin, some domestic, some from foreign sources? So I think there was an administrative burden that was certainly problematic.”

“This is certainly in line with the administration’s desire to maintain energy independence in the U.S. and to have a U.S.-based and U.S.-centric market for our crop inputs and fuels,” he says. “So I think there were a lot of things that went into this. But at the end of the day, it’s still on the table for 2028. I don’t think there’s clear guidance yet, but it certainly left that door open to address this issue in the Set 3 rule.”

A Win for Agriculture

When asked if he would classify this is a “win for U.S. agriculture,” Upmeyer said the immediate impact of the record-high blending mandates for 2026 and 2027 is already clear to those closest to the supply chain.

“I think it’s a great win,” Upmeyer says. “Again, we’re really underpinning the demand for soybeans and crush. We’ve got a strong demand for the rendered products that come from the beef industry and hog industry. So, I think this is a win for agriculture and for the renewable fuels industry. We certainly applaud the administration’s commitment to energy independence, to the renewable space and ultimately to agriculture.”

Unlocking New Farm Revenue: Bayer’s Newgold Targets The Biofuel Boom

Fri, 20 Feb 2026 20:36:47 GMT

At the intersection of low-carbon fuels and practical farm economics, Bayer’s newgold seed brand is being developed, offering an opportunity for farmers to make additional income from their existing acres.

By inserting high-oil, low-carbon intensity crops such as camelina and canola into idle/fallow acres or wheat rotations, growers can tap into a new income stream that feeds the fast-growing biomass-based diesel market.

The new opportunities are backed by defined grain contracts, downstream demand, and long-term R&D investment, according to Chad Bilby, Bayer biofuel crops innovation and commercial lead.

Bilby says Bayer’s biofuel crops portfolio is currently centered on three crops:

1. Camelina (spring and winter): Under the newgold brand, initial focus for 2026 is in the northern Great Plains (southern Saskatchewan, southeast Alberta, eastern Montana, western North Dakota), with potential expansion as the program and value chain build out.

2. Winter canola: Also under newgold, the crop is targeted for commercial planting starting in September 2027 in the southern Great Plains (Kansas, Oklahoma, northern Texas) within wheat rotation systems.

3. CoverCress: This offering is a joint venture between Bayer, Chevron and Bunge and has been in place for several years. CoverCress is an oilseed targeted to corn-soybean farmers in the Midwest and used to produce low-carbon intensity oil for renewable fuels and high-protein meal for animal feed.

“All these crops that we’re focused on are geared for the biomass-based diesel segment of biofuels,” Bilby says. “When you look at biodiesel, renewable diesel, sustainable aviation fuel… a lot of the higher horsepower engines where electric vehicles are not going to play a role are really seeking a path to get access to biofuels,” he adds.

Seed to Market: Closed-Loop System and Value-Chain Alignment

Newgold is being built on the recognition by Bayer that agronomy alone doesn’t make a new crop successful for farmers — marketing certainty is needed.

Because many specialty oilseeds, such as camelina, don’t have a standard commodity market behind them already, Bayer is structuring a closed-loop, contract-based system from the outset.

“Some of these crops aren’t a commodity trade, so something like camelina or CoverCress, you don’t have a market for those crops,” Bilby explains. “There will be a grain contract in place that will establish the pricing and delivery options… farmers will have that grain contract available. And then in the case of a camelina or winter canola, we will then sell the seed to the farmer against that contract to fulfill the contract.”

In parallel, Bayer is working across the entire value chain to align agronomy, grain flow and processing capacity.

“We’re collaborating closely with value chain partners,” Bilby says. “So as crush and renewable fuel capacity comes online, [farmers will] have a locally relevant crop and clear contracting options, kind of a seamless path from seed to market,” he says. “This is going to help ensure that agronomic fit, and that grain logistics and crush demand start to scale together.”

On the distribution side, newgold will tap into Bayer’s existing retail networks but says it won’t be locked into any single channel. Bilby notes that Bayer will leverage relationships and brands like DEKALB, WestBred, and others, but the newgold label gives the company the freedom to choose the best local partners.

More formal announcements around the Bayer newgold brand and opportunities are expected in the coming weeks. Farmers can learn more of the various program details by contacting their local Bayer representative.

China Buying Canadian Canola Again

Wed, 28 Jan 2026 12:53:32 GMT

China has resumed its purchases of Canadian canola, an early sign of a revival in the trade after the nations reached a deal this month, Bloomberg reported. “Crushers in the country have booked cargoes of Canadian rapeseed, known locally as canola, for loading in the next few months, according to people with knowledge of the shipments. Importers also booked some canola meal for loading between April to June, said other people involved in the deals,” said the report. China’s imports of canola and canola products from Canada — a trade valued at C$4.9 billion ($3.6 billion) in 2024 — had plunged last year after Beijing imposed steep levies on the goods, a move seen as retaliation for Ottawa’s tariffs on Chinese electric vehicles and other industrial products.
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Put the Corn in The Bag: How Grain Bagging Can Smooth Out Harvest Bottlenecks

Wed, 13 Aug 2025 14:06:35 GMT

If you’re planning out your harvest logistics and stumped on where you’re going to store all the harvested grain, grain bagging just might be the solution you’re looking for.

Shannon McComas, vice president of sales and marketing at Loftness Specialized Equipment, is seeing a huge increase in demand for grain bagging equipment.

He says a record crop in 2023 followed by a record corn yield in 2024 that will likely be surpassed this fall has left rural communities with no room in grain bin storage.

McComas says if you have a tractor with a PTO rated at 50HP to 150HP — and most row crop farmers do — you just need a grain bagger and unloader to extract the grain from the bags back into a grain cart or truck.

If you bag your grain you will also need a specialized implement to remove the grain from the bag when its sold.

(Loftness Specialized Equipment)

The bags commonly come in three different sizes, 250', 300' and 500', with diameters of 9', 10' or 12'. He says most farmers opt for the 10' or 12' bags that best suit their storage needs.

“Some guys, they come into fall harvest, and the bin is already full of last year’s crop. They need to take that out of the bin and put it into a bag because it’s dried down,” McComas explains. “Then, they can put higher-moisture grain from the new crop in their bins where they have fans to move air and dry it down.”

Cost-wise, grain bagging makes a ton of sense (pardon the bad pun).

“You’re talking about pennies per bushel of storage cost versus multiple dollars per bushel for permanent storage,” he says.

As far as the bags themselves, they are built to withstand a Midwest fall and winter pounding from rain, sleet, wind and snow.

“You need to keep an eye on it through the winter, because sometimes you’ll get a puncture from deer or other animals walking on the bags — or the occasional hailstorm. If you cover those small punctures, the grain will come out in as good a condition as it went in,” he says.

The Investment

(Loftness Specialized Equipment)

Craig Fisher farms 15,000 acres of fertile ground 75 miles east of Bismark, N.D. A lot of his ground is rented, and that’s his main motivation for using grain bags.

“We didn’t want to build big grain bins on land we rent, because you never know if you’re going to lose it,” he says. “The bags we use hold about 40 semi loads of grain, and they only cost us about 7¢ per bushel.”

There are, however, significant upfront costs for the bagging equipment. Fischer’s initial investment rang in just under $100,000 for his bagger and the extraction implement.

“You can spend anywhere from $100,000, like we did, up to $300,000 for a top of the line 12' system,” he says. “I have over 25 million bushels of crop run through my bagger. We just have to change the auger flighting, and that’s a cheap fix. It’s such a simple design.”

Top Notch Convenience

Fisher is also a fan of the flexibility grain bags give him in grain marketing. In this area, once you deliver to the local cooperative, you’re locked into their pricing, he says.

“You can’t sell it to CHS after you’ve delivered to ADM. Once they have your grain, you’re stuck,” Fischer adds. “But if you have the grain bagged on your land, you can take it to another elevator, or even to another state if all of the sudden South Dakota is paying big money for protein.”

He also believes the bags help him smooth out annoying bottlenecks in the harvest cycle.

He could be in the middle of harvest and need to get his crop off as soon as possible, but the semi driver isn’t back from dumping yet, his bins are full and the auger isn’t running. That’s not a great feeling for any farmer, especially one calling the shots on a 15,000-acre harvesting operation.

“With a bagger out there in the field, I can have 13 combines running and that one bagger can handle all 13 of those combines,” Fisher adds.

The bags also maintain moisture levels well, Fisher says, and he sees more of his farmer neighbors getting into grain bagging.

“They used to kind of cross their eyes. But now, pretty much everyone is doing it,” he says. “The one thing I tell everyone is, you have to keep it temporary. You don’t want it in there for more than a year, because you can end up paying a big price if wildlife — the deer, coyotes, even pheasants — start getting into it and ripping it open.”

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John Deere Details Model Year 2026 Updates, New Machine Capabilities and Technology Features

Thu, 27 Feb 2025 16:47:58 GMT

John Deere announces a suite of equipment and technology upgrades and new features across its portfolio of machines. Some of the updates are exclusive to model year 2026 machines, and some are available as retrofit options or upgrades for new and/or older John Deere machines.

Next Generation Perception System For Autonomous Tillage
John Deere is releasing its autonomy Precision Upgrades kit for select tractor models that brings autonomy to tillage work. The system is available as a Precision Upgrades kit for model year 2022 and newer 9R and 9RX tractors and model year 2020.5 and newer 8R and 8RX tractors. Select model year 2025 John Deere tractors are autonomy ready from the factory.

RELATED: John Deere Introducing Next Generation Perception Autonomy Kits

To add autonomy to the tillage tool, retrofit kits are available for 2017 and newer John Deere tillage implements with additional lighting and the StarFire receiver mast and harnessing. The autonomy ready solutions are factory installed in base models for select MY25 tillage tools.

Combine Improvements
For model year 2026, the additions include a new three-piece CAM hinge draper reel with dense pack fingers and a new CF 18 30 corn head, which John Deere says is the industry’s first folding corn head with 18" rows and 30" spacing.

John Deere is also announcing several enhancements to its model year 2026 combines:

The Harvest Settings Automation feature will now include an out-of-crop settings adjustment that engages when the combine is passing through previously harvested areas of the field. Now the feature supports wheat, barely, canola, soybean, corn and rice crops.

Predictive Ground Speed Automation is being updated with a new feature that helps operators manage unique field terrains such as waterways, ditches or terraces. Weed detection sensing is also being added. There will be new functionality incorporated into John Deere Operations Center that will use crop-type data from planting and satellite imagery to ensure all eligible combines have the essential harvest automation files necessary to increase productivity. Predictive Ground Speed Automation supports wheat, barley, canola, soybean, corn, peas, edible beans and lentils.

AutoTrac Turn Automation is being updated to automate the raising and lowering of the combine head for hands-free turning, and a new auto-unload camera with supporting hardware and software is available to help consistently fill grain carts and possibly reduce in-field spills.

(Dan Videtich/John Deere)

John Deere also announced a handful of harvest settings updates available in Operations Center, including grain harvest weight sharing and Grain Sensing with HarvestLab 3000 available now for all model year 2025 and newer X9, S7 and T6 combines.

And physical updates to model year 2026 machines include a new instructor seat in all models and a dual USB-C fast charging module in the cab. And the JD Link Boost satellite connectivity module is available for install on eligible combine models to maintain connectivity during harvest.

Sprayer Updates
John Deere says these updates were developed to give farmers cleaner fields that have less weed competition, leading to more yield potential.

See & Spray has new variable rate capabilities that can unlock precise applications and significant product savings in later-season fungicide and desiccant applications, preharvest passes and more, according to John Deere. Farmers can also now see the percentage of biomass each perception camera detects throughout the field. See & Spray Variable Rate capabilities will require a G5 or G5Plus CommandCenter display.

See & Spray Select is now available from the factory on model year 2026 John Deere 400 and 600 series sprayers with 90', 100' or 120' steel booms. See & Spray Select also will be available as a Precision Upgrades kit for model year 2018 and newer John Deere sprayers with ExactApply and a 120' steel boom.

See & Spray Premium is adding new boom sizes and is now available on Hagie STS20 sprayers. See & Spray Premium is compatible with 90', 100' or 120' booms.

(Mel Koltai/John Deere)

Beyond the See & Spray updates, John Deere also has two new AutoTrac options for sprayers:

AutoTrac Turn Automation (ATTA) is now compatible with John Deere 400 and 600 series self-propelled sprayers, 800R floaters, and Hagie STS12, STS16 and STS20 sprayers, model year 2022 and newer. The new feature is also included with Automation 4.0 on Gen4 displays and the G5 Advanced license for machines that have a G5 display.

AutoTrac Vision 2.0 is a new technology that ensures sprayer wheels remain centered within each crop row, and it boasts a maximum speed of 22 mph, slope performance of up to 6 degrees, and the ability to navigate curves with a radius of just 50 meters. AutoTrac Vision 2.0 is available on model year 2026 John Deere sprayers as a factory option.

John Deere is also introducing ExactApply Variable Rate capabilities – including multi-rate across the boom with AutoSelect Pulsing (and A+B pulse width modulation nozzle switching). Sprayer operators can now vary multiple application rates across the entire boom, up to 11 unique sections, leading to more precise product placement. Operators also can use increased rate ranges for variable rate prescriptions and curve compensation. This technology is available as a software update for model year 2023 to 2025 sprayers, and model year 2026 will come factory installed with updated software features and functionalities.

Planter Updates
John Deere announced four new planter updates:

A new rate controller, the John Deere Rate Controller 3, with the option to control and apply two liquid and/or anhydrous ammonia (NH3) products simultaneously across up to 16 sections. This can help farmers decrease the number of trips through the field while getting the same application work completed. John Deere says the new rate controller is suitable for a variety of row crops, ranches, high-value crops and even on golf courses.

Rate Controller 3 also features a new rate controller app that is available within the John Deere display menu. The rate controller app is fully compatible with Gen 4 v2 and G5 displays.

(Michael J Newell/John Deere)

John Deere says the new app will give farmers a similar experience as operating a self-propelled sprayer with a controller with a built-in base from the factory. This means farmers can now monitor their planter and rate controller functions on one screen on the display and execute easy adjustments, according to John Deere.

The new rate controller module also has a new harness and 48-pin connector, which expands the compatibility with third-party equipment.

Seed-Level Sensing provides farmers with a more accurate look at the level of seed remaining in the tank. It places a sensor in the tank that can measure the volume of seed left in the tank, which is then provided to the operator in the cab and the John Deere Operations Center. This feature is available on model year 2026 planters or as a Precision Upgrades kit for certain models back to model year 2022.

Fertilizer-Level Sensing is also new and it is similar to seed-level sensing, providing the operator with better information on the fertilizer level remaining in the tank. It is an external manifold that includes two pressure sensors, which are used to calculate both the liquid density as well as the volume remaining in the tank. This update is available on model year 2026 planters and is also a Precision Upgrades kit that can be added to machines that are model year 2022 and newer.

Active Vacuum Automation is available on model year 2026 planters with electric drives and the SeedStar 5 Monitoring System. This feature looks in real time at singulation and automatically adjusts the vacuum, helping to prevent skips and doubles.

To determine which new features and updates are available for existing machines or only on model year 2026 new machines, contact your local John Deere dealer.

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Winter Canola Offers New Income Potential to Mid-South Farmers

Fri, 10 May 2024 17:15:59 GMT

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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Data From New Trials Boasts Yield Boosts With Biologicals

Fri, 08 Mar 2024 21:17:23 GMT

Farm Journal’s Smart Farming Week is an annual week-long emphasis on innovation in agriculture. The goal is to encourage you to explore and prioritize the technology, tools and practices that will help you farm smarter. Innovation today ensures an efficient, productive and sustainable tomorrow.

Two new studies from Locus Ag and Pivot Bio found the use of biological products consistently increased yields in a variety of crops.

When testing Locus Ag biological products, trials analyzed by contract research organizations and universities found yield increases between 4.2% to 26% in specialty crop varieties and between 5.2% to 37% in row crop varieties.

“In a time when the agricultural sector is navigating challenges such as climate variability, rising input prices and the need for sustainable practices, Locus Ag’s USA–made biological solutions are more vital than ever,” said Kade Haas, SVP of Locus Ag. “Farmers can’t leave anything to chance. This data confirms that no matter what crop they grow or where they grow it, these premium biologicals are going to take their farming to the next level and ensure they have a successful growing season.”

The products were tested across the U.S. in locations with varying growing conditions. But while 11 specialty crops and 12 row crops were tested, it’s important to note only alfalfa, canola, corn, cotton, potato rice, soybeans and wheat had a 95% or higher confidence rate in the reliability of the results.

To view the specific yield gain for each crop tested with Locus Ag biological products in the study, click here .

Data from another study conducted by The University of Kentucky’s Martin-Gatton College of Agriculture, Food and Environment found replacing 40 lb. of synthetic nitrogen with Pivot Bio’s Proven 40 led to higher corn yields.

During these trials, corn was planted at a rate of 32,000 seeds per acre under no-till and cover crop conditions. Proven 40 was applied in furrow with additional nitrogen treatments of 140 lb. and 180 lb. per acre. Data showed the different amounts of nitrogen led to similar yield results, while the addition of Proven 40 increased yields.

“The study’s findings underscore the potential of microbial nitrogen fertilizer to maintain and even increase crop yields while reducing dependency on synthetic fertilizers,” said Clayton Nevins, senior agronomic scientist for Pivot Bio. “Not only are you replacing 40 lb. of synthetic nitrogen, but you are also delivering nitrogen straight to the roots, boosting plant health earlier in the season.”

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Big Oil is Teaming Up With Big Ag, And it Could Turn Cover Crops Into the New Cash Crop for Farmers

Fri, 24 Mar 2023 15:10:02 GMT

Renewable diesel is revving up interest from both agriculture and the oil industry, and now oil and agriculture companies are teaming up to find additional crop sources to fuel the growing demand. Cover crops could be an additional source, which would also give farmers another revenue stream.

“There seems to be no holding back this investment in renewable diesel and sustainable aviation fuel,” says Peter Meyer, grain and oilseeds economist with S&P Global Commodity Insights .

Meyer has also been watching the renewable fuels growth potential closely for the past two years.

“We had a conversation with a major oil company this week, and they asked me why my soybean oil demand for renewable diesel was flat from 2024 to 2025,” says Meyer. “And I said, ‘because you run out of crop, and you run out of crush capacity.’”

S&P Global Commodity Insights forecasts the demand for soybean oil to increase 25% from now until 2024, with that forecast to stay flat into 2025. That’s because S&P is forecasting crush capacity to grow by 25% during that same time frame.

First Renewable Fuels Plant Now Coming Online in California

The awaited increase in demand has been talked about for a couple years, and the first major U.S. plant to produce renewable diesel, is set to come online yet this month. “There’s an enormous plant out in Martinez, Calif., which is a Marathon plan that is going to be running in the first quarter and then running full bore by the fourth quarter,” says Meyer.

In 2021, Marathon announced plans to convert its Martinez, Calif. refinery facility to a renewable fuels facility. And as the first of more than 20 announcements since, it’s the one the entire industry is watching, as it marks the start of a new era for renewable fuels. The partnership for this plant is with Neste, an oil refining and marketing company, produces, refines and markets oil products.

“That’s a joint venture between Marathon and Neste,” says Meyer. “We’re tracking cooking oil imports into the U.S. very closely. They have increased quite a bit that would be the preferred feedstock for that plant. Whether or not they have enough, that’s the question.”

As more crush facilities come online, the California plant will produce renewable diesel from mainly used cooking oil for now.

“China is the world’s largest exporter of used cooking oil. TheUnited States used cooking oil was basically exported into Singapore converted into renewable diesel and brought back into California. Now with the Martinez, Calif., plant coming online we think to use cooking oil stays in the U.S. will grow, and also the us becomes a net importer,” explains Meyer.

Turning Other Cover Crops Into Cash Crops for Farmers

S&P Global Commodity Insights shows soybean oil is still be the main source for other renewable diesel plants coming online, but with not enough soybean acres to meet that demand, companies are looking at other crops, as well.

From camelina and canola to pennycress, agricultural companies are teaming up with oil companies to find additional sources to make renewable diesel.

Last week, Corteva, Bunge and Chevron announced a commercial collaboration to introduce a proprietary winter canola hybrid to produce plant-based oil with a lower carbon profile. The goal? Increase availability of vegetable oil to fuel the domestic renewable fuels market.

“This week’s announcement with Corteva really shows that Chevron and Bunge are in it to win it,” says Meyer. “It also shows despite the fact that we’re going to have additional soybean crush capacity coming online here in two years, they don’t want to rely on that.”

Corteva’s announcement comes on the heels of a joint venture between Shell Oil and S&W Seeds to grow camelina .

“It’s called Vision Biofuels,” says Brent Johnson, vice president of sales and marketing for Americas with S&W Seeds. “And it’s owned by both Shell and S&W Seeds. So, we formed a separate joint venture. They’re going to be doing breeding and research, and actually, it’s at one of our former facilities in Nampa, Idaho.”

Johnson says the goal is to give growers another possible seed source, and one that doesn’t take away from their crop rotation today.

“I think a key point to the camelina is we’re not going to replace any of our food production acres, it’s an additive,” he says.

While the main idea is to use it as a cover crop, it could also be planted as a double crop in early spring.

“It’s a very short season crop, just 90 days to harvest,” says Johnson.

CoverCress Could Grow to 20 Million Acres

Another crop creating opportunity is field pennycress, a crop developed by CoverCress through breeding and gene editing. Pennycress is a common winter weed, but the startup company that began in 2013, turned it into a cover crop that can be crushed, with the oil turning into another source for renewable fuels.

In 2022, CoverCress raised $26 million and partnered with Bunge and Chevron. Then, later that year, Bayer acquired the majority share of CoverCress.

“They planted 10,000 acres of pennycress this year, they’re looking for 20 million acres, yes 20 million, is their target within the next five years,” says Meyer.

True Test for Renewable Diesel

Meyer says the trust test to which investments will gain ground could come later this year.

“2023 is going to be the year where we find out who the contenders are and who the pretenders are,” says Meyer.

As more joint ventures are announced, it’s opening the door for a new era of opportunity, as well as unique partnerships. Traditionally, oil companies were at odds with agriculture, especially when it came to ethanol. But renewable diesel is the new common ground for oil and agriculture.

“Who would have ever thought that oil companies would have been in the seed business? This is big oil joins, big ag,” Meyer says.

The new partnerships are ones S&P Global commodity Insights sees as a tremendous opportunity for farmers to see a second cash crop. And it’s not just one crop -- but a multitude of crops that farmers could cash in on in the years ahead.

“This is the opportunity, not necessarily for you to have to change your change your rotation or whatever. But the fact of the matter is, this is an opportunity for you to make more money on your land, if you pay attention to what’s going on around you,” says Meyer.