Economic Profitability and Sustainability of Canola Production Systems in Western Canada

Transcription

1 Economic Profitility nd Sustinility of Cnol Production Systems in Western Cnd Elwin Smith, R. Blckshw, Agriculture nd Agri-Food Cnd (AAFC), Lethridge, AB, N. Hrker, J. O'Donovn, AAFC Lcome AB, S. Brndt, E. Johnson, AAFC Scott, SK Project Code: Finl Report: April 2013 Reserchers conducted three-yer project to study the economics of cnol production systems including n input study nd rottion study. The results from the input study of rley-cnol rottion indicted the primry input tht influences yield ws weed control. Without weed control the ddition of fertilizer or other inputs hd no enefit. In-crop weed pressure nd the timing of weed control impcted cnol yield. The rottion study results showed tht the net return from continuous cnol rottions ws lower thn from the stndrd four-yer rottion. High cnol price enefited shorter cnol rottions more thn the four-yer rottion. With very high cnol prices nd lckleg resistnt hyrid cnol, the short C-W rottion ws the most profitle rottion nd continuous cnol ws s profitle s 4-yer rottions. Frm csh receipts in Cnd from cnol were $4.9 illion in 2008, representing out 21% of totl frm csh receipts in Cnd. This is only slightly lower thn the 25% for ll whet. Cnol production hs expnded in the pst decde due to improved gronomics nd higher reltive profitility thn some other cerels nd oilseeds. To mintin or expnd the current level of output it is essentil to identify, delinete, nd where possile, quntify, the physicl fctors nd economic circumstnces tht motivte producers to grow cnol rther thn some other crop. Reserchers with Agriculture nd Agri-Food Cnd (AAFC) in collortion with the University of Lethridge conducted three-yer project from 2010 to 2013 to study the economics of cnol production systems. The specific ojectives of the study were to evlute input use rtes nd evlute the durtion etween cnol in rottion. This study ws two-prt economic nlysis of dt from recently completed field studies, the Cnol Grower Survey (See 3.7.9), nd secondry sources for prices, input costs nd other finncil dt. The project included n input study nd rottion study, which were undertken y grdute students, under the supervision of University professors nd AAFC reserchers. This project did not hve ny field experiments. Input Study The input study evluted different rtes of input use, such s seed type, seeding rte, fertilizer nd hericides used in cnol production. Differing rtes for inputs were exmined in isoltion (i.e., chnges in single inputs) s well s in comintion (i.e., exmining multiple inputs simultneously). The ojective of this study ws to identify

2 potentil opportunities to reduce some production inputs without scrificing yield nd profits, s well s to exmine whether some inputs hve more impct on profitility thn others. The results from the study of rley-cnol rottion indicted the primry input tht influences yield ws weed control (Figure 1). The inputs hd more impct on the net return of cnol thn of rley. Without weed control the ddition of fertilizer or other higher qulity inputs hd no enefit. The prctices of incresing seeding rte of cnol, higher fertilizer rtes, or using etter genetics to compete with weeds when there ws no weed control were not profitle prctices (dt not shown). Figure 1: Net returns for cnol nd rley strting from the highest input level nd sutrcting inputs (HLI=highest level of inputs, -G=reduced genetics (conventionl non-hyrid cultivr for cnol), -50S=reduced seeding rte y 50%, -F=nitrogen fertilizer reduced y 50% nd 100% from recommended rte, nd -H=hericide reduced y 50% nd 100% from recommended rte. The most expensive input to eliminte ws hericides, ut in this study using 50% hericide rte hd similr net return to using the full rte of hericides. Reducing hericide rtes did reduce cost, ut the vlue of the yield declined y similr mount negting the potentil svings. Nitrogen fertilizer incresed net return in weed-free environment, ut very high rte of nitrogen ws not necessrily profitle. A higher thn recommended seeding rte to increse plnt density reduced net return due to higher seed costs. Finlly, higher qulity genetics (hyrid for cnol nd newer vriety for rley) incresed net return. The importnce of weed control in cnol production ws lso evident in survey of cnol growers. The pressure of in-crop weeds impcted cnol yield nd vlue of cnol production (Tle 1). In mny cses, fields with severe weed infesttions were lso

3 spryed two or three times, incresing production costs nd lowering the net return even more thn is reported in Tle 1. Tle 1: Impct of severity of weeds on cnol yield nd returns Weed Pressure Yield (u/c) Decresed Vlue ($/c) Mild Moderte 37.6 $17 Severe 31.3 $80 *Cnol price ws $10/u (csh) Source: Dnny Le Roy nd Ryn Friesen, University of Lethridge nd Elwin Smith, AAFC. The timing of in-crop weed control long with weed pressure hd definite impct on cnol yield. For the survey of cnol growers, timing included: Very erly = preemergence nd cotyledon, Erly = 1-2 lef, Recommended = 3-4 lef. The results showed tht proportiontely more very erly control ws ssocited with severe weed pressure n indiction tht producers cted on the weed sitution, ut despite their erly ction there ws still yield penlty. (Tle 2) Tle 2: Cnol yield s impcted y timing of in-crop weed control nd severity of weeds. Mild Moderte Severe Time of Control Yield (u/c) Very Erly Erly Recommended Source: Dnny Le Roy nd Ryn Friesen, University of Lethridge nd Elwin Smith, AAFC. If producer knows they hve or will hve high weed pressure they need to time weed control pplictions erlier thn the recommended timing for weed control. The yield penlty for witing to the recommended control time is doule tht of erly control of weeds. (Tle 3) Tle 3: The reduction in yield nd returns from severe weed levels, y timing of weed control. Time of Control Yield Penlty Return Loss ($/c) (u/c) Very Erly Erly Recommended Source: Dnny Le Roy nd Ryn Friesen, University of Lethridge nd Elwin Smith, AAFC.

4 There ws lso yield impct from the previous crop in the rottion, with proportiontely more yield impct with severe weed pressure fter cnol nd pulse crops. There ws less of n impct for other crops such s ens, mustrd, potto, forges nd fllow. (Tle 4). Tle 4: Impct of previous crop on cnol yield, y weed severity nd the difference etween mild nd severe weed pressure. Weed severity Mild Moderte Severe Mild less Severe Previous crop u/c Cnol Cerels Oilseeds Other (hy, etc.) Pulse Fllow Source: Dnny Le Roy nd Ryn Friesen, University of Lethridge nd Elwin Smith, AAFC. Rottion Study In the rottion study the economic costs nd enefits of shortening the intervl etween cnol in crop rottions ws exmined. This ws only relevnt for res free of cluroot. The rottion intervls for cnol, with field pe, spring whet nd flx, vried from continuous cnol, to cnol once every second, third or fourth yer. Additionl fctors in the study included cnol genotype (lckleg resistnt nd lckleg susceptile) nd fungicide for disese control. The results from the study showed tht the net return from continuous cnol rottions ws lower thn from the stndrd four-yer rottion (Figure 2). Continuous cnol hd the lowest return of the five rottions, nd the open pollinted cultivr without lckleg resistnce hd lower return thn the hyrid with lckleg resistnce. With very high cnol prices nd lckleg resistnt hyrid cnol, the short C-W rottion ws the most profitle rottion nd continuous cnol ws s profitle s 4-yer rottions. There ws n economic incentive when growing hyrid cnol with lckleg resistnce to shorten the rottion nd include field pe in three-yer rottion of pe-cnol-whet.

5 Melfort Contriution mrgin ($ h -1 ) C:W 1.7 C:W 1.9 C:W 2.1 C:W 2.3 c c C C-W FP-C-W C-W-FP-W C-W-Fx-W Crop Rottion Contriution mrgin ($ h -1 ) Scott C:W 1.7 C:W 1.9 C:W 2.1 C:W 2.3 C C-W FP-C-W C-W-FP-W C-W-Fx-W Crop Rottion Fig. 2. Contriution mrgin for five hyrid cnol rottions without fungicide control, nd for four rtios of cnol to whet prices (C:W) t Scott nd Melfort, Ssktchewn, Cnd. Letters ove the rs indicte significnt differences mong the five crop rottions y ech of the four whet:cnol price rtios. Source: Smith, E. G., Kutcher, H. R., Brndt, S. A., Ulrich, D., Mlhi, S. S. nd Johnston, A. M. The profitility of short-durtion cnol nd pe rottions in western Cnd. Cn. J. Plnt Sci. 93: 933ჼ940. For limited numer of yers when cnol prices re ttrctive, producers my e le to shorten their rottion. The rottion cn e lengthened out when other crops (whet, rley) re more or s profitle to grow s cnol. However, there re concerns with disese pressure, even with the lckleg resistnce hyrids, when shortened cnol rottions re used for mny yers, so there is need to hve flexile rottions nd hve some periods when cnol is not plnted too frequently.

6 Scientific Pulictions Smith, E.G., Brndt, S.A., Kutcher, H.R., nd Mlhi, S.S. (2013). "Economic evlution of cnol nd pe intervl in rottions.", Cndin Journl of Plnt Science, 93(5), pp