Marketing
|
Item |
Discount |
Dockage |
unload weight, less % dockage |
Moisture: tough damp shrink |
10.0 to 12.5% max: $12/ton over 12.5%: $20/ton down to 10.0%: clean weight less unload %: 10.0% 100: 10.0% |
Glucosinolates |
3+ to 4 max: $25/ton 4+ to 5 max: $100/ton subject to rejection at crushers (rejection per visual color readings on litmus paper) |
Grade: No.1 No.2 No.3 |
no discount $20/ton $75/ton |
Other grade factors: heated brown seed; distinctly green seed |
Profitability of canola vs. Other Michigan field Crops
Canola profitability is comparable to other Michigan crops (Table 4) based on current prices and costs of production. Agricultural Economics Report No. 496 from the MSU Department of Agricultural Economics was used to estimate farm budgets for typical Michigan crops. Estimates are based on projections from Ontario and MSU research/demonstration trials done by Michigan State University and in Ontario.
Table 4. Expense-profit (per acre) comparisons of canola vs. other Michigan field crops.*
Input |
Spring canola |
Winter canola |
Wheat | Corn | Navy bean |
Soybean |
Seed Nitrogen Phosphate Potassium Herbicides Insecticides |
15.00 27.50 16.00 18.00 16.00 0.00 |
15.00 27.50 16.00 18.00 11.00 0.00 |
15.00 22.00 16.00 18.00 1.00 0.00 |
23.75 19.60 6.00 13.20 14.70 2.20 |
20.00 6.60 0.00 2.40 14.70 0.00 |
10.00 3.20 0.00 4.80 17.90 0.00 |
Selected variables costs (SVC) ($) |
92.50 | 87.00 |
72.00 |
79.45 | 43.70 | 35.90 |
Yield/unit |
2,000 lb |
2,500 lb |
65 bu |
110 bu |
12 CWT |
40 bu |
Price/unit** | 0.12 |
0.12 |
3.02 |
2.00 |
20.00 |
5.00 |
Gross revenue ($) |
240.00 |
300.00 |
196.30 |
220.00 |
240.00 |
200.00 |
Return above SVC ($) |
147.50 |
212.50 |
124.30 |
140.55 |
196.30 |
164.20 |
*Production costs reflect cost example for agricultural inputs and are subject to change. Yield estimates for canola are based on MSU research and extension tests. While additional costs may be incurred in producing these crops, these figures are used as a basis for comparing different crops. Estimates in all cases are for costs expected to produce higher yields. **Check current prices. |