By Michael Boland, Kansas State University, and Gary Brester, Montana State University.

Profile updated June 2011 by Diane Huntrods, AgMRC, Iowa State University.


Background
Canola's origins date back to an oilseed crop grown in the 13th century called rapeseed. Although this crop was cultivated centuries ago, rapeseed was not used extensively until World War II when it was discovered to be an excellent lubricant for steam engines in ships.

The first edible rapeseed was developed in Canada in 1956, and "canola" was registered as a name for this crop in the late 1970s. Canola was developed by genetically altering rapeseed to reduce the levels of glucosinolates (which contribute to the sharp taste in mustard) and erucic acid (a fatty acid not essential for human growth). In 1985 the U.S. Food and Drug Administration (FDA) declared canola “Generally Recognized as Safe” (GRAS).

Production
Most canola production in the United States takes place in the northern tier of states adjacent to Canada: North Dakota, Idaho and Minnesota. North Dakota alone produces over 90 percent of the nation's canola crop. In 2010, the state produced 2.2 billion pounds, with a total value of $436.9 million. However, Oklahoma has become the second largest producer of canola, with the 2010 harvest totaling 89.6 million pounds and valued at $15.5 million. (NASS 2011)

The U.S. canola crop in 2010 jumped to 2.5 billion pounds and was valued at $486.9 million. Yield was slightly lower in 2010, dropping to 1,700 pounds per acre. The total area planted in 2010 was 1.45 million acres, the highest number of acres planted to canola in some time. (NASS 2011).

Canola is a cool-season crop and requires more moisture than wheat. Diseases such as blackleg, sclerotinia stem rot and rhizoctonia root rot can reduce yields extensively. The impact of these diseases can be significantly reduced by good crop management including sufficient rotation with other crops. The development of herbicide-tolerant varieties and the use of integrated pest management have also decreased the risk of crop quality losses.

The two species of canola come from the mustard family: the Argentine type (Brassica napus) and the Polish type (Brassica rapa). While Argentine varieties need about 95 days to reach maturity, Polish varieties mature in approximately 80 days. The Argentine varieties are taller, have a higher yield potential and have a higher oil content than the Polish varieties. Spring and fall varieties are available in both species. However, spring varieties are damaged by the winter weather conditions that many areas in the United States experience. Research has found that fall varieties yield 30 to 40 percent better than those planted in the spring.

Canada is the largest single producer of canola, but the European Union-27 countries grow more canola.
 
Processing
A handful of plants process most of the canola grown in the United States. Archer Daniels Midland owns facilities in Windsor, Canada; Atlanta, Georgia; and Velva, North Dakota. Central Soya and Calgene operate a plant in Chattanooga, Tennessee, while Cargill owns processing facilities in Calvet, Saskatchewan. The latter company is building a second processing facility adjacent to the existing facility, doubling oilseed processing capacity to 1.5 million tons annually. Northstar Bioenergy, a North Dakota company, is also building a refining facility.

Value-added Products
Uses of canola include feed products for livestock consumption and food products for human consumption. Canola meal contains approximately 38 percent protein and is complementary to soybean meal. Livestock are able to utilize a mix of soybeans and canola better than either of the meals separately. According to the ERS (2011), 715,000 tons of canola meal were produced in 2009. An additional 1.3 million tons of meal were imported that year.

Most canola is crushed into oil and used in food products. In 2008 1.1 billion pounds of canola oil were produced in the United States, and an additional 2.4 billion pounds of canola were imported (ERS 2011). Canola has 38 to 39 percent oil content compared to soybeans, which consist of only 18 to 19 percent oil. This fact has caused researchers to consider using canola as a biofuel. However, the response has been mixed among the scientific community.  (Farm Press)

Health Benefits
The demand for canola oil was heightened when the FDA approved a qualified health claim for the oil. Bottled canola oil and foods that use it as the primary oil are now permitted to state on their label that substituting it for saturated fats may reduce the risk of coronary heart disease.

Canola has the lowest saturated fatty acid level of any vegetable oil on the market, making it a close substitute for other oils. Canola oil also contains a high level of polyunsaturated fatty acids, some of which cannot be made in the human body. These types of fat have been shown to reduce cholesterol levels. As more consumers recognize canola oil as a “healthy” oil, the amount of it used both in cooking and in processed foods will increase. Canola oil consumption is expected to continue to rise until it exceeds that of corn and cottonseed oils, becoming second only to soybean oil. Taco Bell® and McDonalds'® have switched to using canola oil or a canola oil blend in their foodservice operations.

Prices
Canola prices are benefiting from the overall strength of the vegetable oil market. They set a new average high in 2008, reaching $18.70 per cwt (NASS 2009). However, prices jumped again in 2010 to $20.00 per cwt , establishing a new average high (NASS 2011). The price of canola follows other oilseed crops.

Outlook
USDA’s plantings report in March indicated that U.S. farmers would sow 11 percent more canola acreage in 2011. However, adverse planting conditions threaten to derail those plans. Even assuming that producers are able to sow the intended 1.6 million acres, canola production would likely decline in 2011. The canola crop is seen falling 4 percent to 2.3 billion pounds since 2011 yields may fall well short of last year’s above-average yield.  (ERS 2011) 

Links
As biofuel becomes popular, is canola a feasible winter crop? David Bennett, Farm Press, 2006.

Canola Council of Canada.

Crop Production Annual Summary, National Ag Statistics Service (NASS), USDA.

Northern Canola Growers Association.

Oil Crops Outlook, Economic Research Service (ERS), USDA.


Profile created August 2003 and updated June 2011.