Kim Anderson Tells State Canola Conference- Canola Rotated with Wheat Makes Cents- AND DollarsWed, 30 Jul 2014 05:30:59 CDT
Long time Extension Grain Market Economist Dr. Kim Anderson has crunched the numbers- and told the 2014 State Canola Conference this week that establishing a wheat- canola rotation is one production strategy that can help a wheat farmer stay economically viable in today's farm environment.
Anderson says that if you look at a historical comparison of hard red winter wheat prices and canola prices adjusted to the southern great plains, data from the last 20 years suggests that wheat prices are sixty four percent of the value of canola prices. The graphic shown here reflects that premium.
When you run a farm budget based on that premium and take into account higher costs of production for canola (about twenty percent more than wheat), potential net revenue can increase from 45 to 65 percent annually.
Anderson acknowledges that canola will mean adding some equipment to plant and harvest the crop- and that there is more management involved- and a significant learning curve to be able to produce the crop- but that canola added to your farm can be worth the time, trouble, risk and effort.
Click on the LISTEN BAR below to hear our conversation with Kim Anderson about canola and wheat production from an economic point of view- Dr. Anderson clearly offers two thumbs up.
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