Story Posted: April 25, 2006

Canola Seed Costs Rise, Canola Acreage Drops

The farmer directors of the Saskatchewan Canola Development Commission (SCDC) are concerned by the escalating cost of canola seed. They believe it's one of the reasons for the expected drop in Western Canadian canola acreage this spring.

"The cost of treated canola seed is as high as $6.50 a pound," explains Roy Button, Executive Director of the Saskatchewan Canola Development Commission. "At a seeding rate of 5 pounds per acre, that's a cost of over $30. When added to the high cost of nitrogen fertilizer and the rising price of diesel fuel, producers feel trapped."

In an effort to reduce input costs, some producers have been using homegrown seed, but that is becoming increasingly restricted. It has never been legal to save seed from Roundup Ready varieties. New Clearfield varieties have agreements for use, and now restrictions have been placed on some Invigor hybrids.

Starting this year, some Invigor hybrid seed bags contain a label that places a condition on the seed sale. The label says, in part, "replanting, sale or distribution to others for resale or use as a seed crop or other reproductive purposes is prohibited."

"It is not clear how the company plans to enforce this," notes Button. "Some of the same varieties were sold in 2004 with no such conditions attached."

The SCDC is funding a study to investigate the economics of using farm saved hybrid seed. Typically seed from hybrid crops do not perform well, but many producers are struggling to make ends meet.

The SCDC is exploring several other avenues in an attempt to cut seed costs. Seed patents are being investigated to see how soon some the patented traits may be available for other plant breeders to use.

"We are also evaluating the potential of a breeding program funded by producers so that competitive canola varieties could be available at a reduced cost," says Button. "Up until now, the check-off funds paid by canola producers to the SCDC have been channeled to other types of research to benefit the industry. That may have to change.

"Private industry has made a tremendous investment in canola breeding, but the price of seed is out of sync with what producers can afford. Maybe we have to negotiate with the industry to develop new agreements whereby more of the value can remain with farmers," muses Button. "Growers need a lid on escalating costs to reduce their risk and justify growing the crop."

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