Record Canola Crop Expands As Biofuel Demand Grows

USDA forecasts record U.S. canola production at 5.4 billion pounds for 2026/27 as farmers expand acreage to meet stronger demand from food and biofuel markets.

Field with yellow canola_Photo by Cherries via AdobeStock_122036360.jpg

A field of yellow canola.

Photo by Cherries via Adobe Stock

WASHINGTON, D.C. (RFD-TV) — USDA forecasts record U.S. canola production at 5.4 billion pounds for 2026/27 as farmers expand acreage to meet stronger demand from food and biofuel markets.

The Economic Research Service says North Dakota planted 2.33 million acres, up 29% from last year. Acreage also increased in Minnesota, Montana, Washington, Oklahoma and Kansas, while national yield is forecast 10% lower at 1,811 pounds per acre.

USDA projects domestic canola crush at 5.3 billion pounds, up 11% from 2025/26. A new crush facility is expected to come online during the marketing year, adding processing capacity.

Biofuel use of canola oil is forecast to rise to 5.6 billion pounds from 3.7 billion last year. USDA says stronger renewable-fuel demand and eligibility for the 45Z producer tax credit are supporting the increase.

Canola exports are also forecast to rise to 900 million pounds, while domestic use of canola oil for food, feed, and other industrial uses is expected to rise 4%.

Farm-Level Takeaway: Record canola production and expanding crush capacity are positioning growers to benefit from stronger food and biofuel demand.
Tony St. James, RFD-TV Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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