04/10/2024 (Biofuels International) - The US biofuel market is experiencing dynamic growth, making canola cultivation increasingly attractive for farmers in the northern US.

Their Canadian counterparts are also benefiting, because the US is a major market for both canola meal and oil.

According to the US Department of Agriculture (USDA), the area dedicated to canola exceeds 1 million hectares for the first time in the 2024/25 season.

This represents a 13% increase from the previous year. If yields remain consistent with the previous season, the USDA expects a record harvest of just over 2.1 million tonnes.

This would position the US as a globally significant producer of canola and rapeseed. All of the key canola-producing states in the US have expanded their cultivation areas. North Dakota accounts for the lion's share of 830,000 hectares.

The state is followed by Montana and Washington, each with around 80,000 hectares, and Idaho and Minnesota, each with about 38,000 hectares. Notably, the canola areas in North Dakota, Montana and Washington have all risen to record highs.

According to research by Agrarmarkt Informations-Gesellschaft, the growth of canola production in the US is driven by dynamic demand for meal as feed for dairy production and for canola oil as a key feedstock for biofuel production.

In particular, the Renewable Fuel Standard (RFS) at the national level and the Low Carbon Fuel Standard (LCFS) in California, where more than 50% of transport fuels are now biobased, have led to brisk demand and attractive prices for producers.

However, despite this growth, US production cannot keep pace with demand. Consequently, US imports of canola meal and oil, primarily from Canada, continue to increase steadily.

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