Canola is not a new commodity, but opportunities may help sway growers to consider it in their rotation as Scoular Grain has expanded its operation in northwest Kansas.
Scoular Grain’s canola and soybean crush facility (pictured above), located 5 miles west of Goodland at Caruso, is on track to launch full operations this October. Jeff Frazier, Scoular Grains market development manager, said one opportunity for growers to expand their marketing portfolio could include canola. Canola is planted in early September through October, depending on the region, he said. Canola planted this fall would be harvested in summer 2025.
Canola can be harvested two ways, he said. Farmers can cut it with a combine similar to wheat, or it can be swathed and about a week later picked up with a combine.
“One of our key initiatives is we want to eventually grow the program to 400,000 acres as we have a capacity for 11 million bushels a year,” Frazier said, adding that the company plans to be patient. “It is more important to us to get it right. Education is paramount, and that starts with letting producers know about potential benefits.”
Canola for the 2025 crop year currently offers a delivered crush bid of $11.20 a bushel, which is much higher than wheat. Dryland canola produced about 30 bushels per acre in 2024. Under ideal growing conditions, researchers say it has the potential to reach 60 bushels per acre.
Frazier said Scoular’s approach has been to work with growers and outline opportunities and answer questions.
That includes an arrangement so that if a producer cannot grow a crop due to circumstances beyond their control, typically called an “act of God,” Scoular will not force the farmer to buy off the open market to fulfill a contract. If the grower, as a starting point, wants to commit to delivering 5,000 bushels, that might be the right approach for him.
“We understand there is a lack of crop insurance to cover canola, so we want to provide our growers with ways to avoid risk and worry,” Frazier said.
The company will also have unloading sites at several towns in Kansas, including Cullison, Wellington, Coolidge and Horace. Growers can also develop their own on-the-farm storage or work with third-party elevators. The company has made a long-term investment in the processing plant because the venture is going to be “more of a marathon than a sprint,” Frazier said.
“We are in it for the relationship and we won’t be a fly-by-night operation,” he said.
Scoular retrofitted the facility so it can handle both soybeans and canola.
“We have a large footprint in soybeans, and crushing soybeans provides stabilities,” Frazier said.
Being located near Goodland made sense when Scoular purchased the facility from ADM several years ago. Frazier liked the idea that farmers in that region can have marketing options for their crops.
Renewable diesel and renewable markets have grown in importance, Frazier said.
“The renewable market is not going away any time soon,” he said. “With other commodity prices depressed, right now canola can be a viable option.”
He also believes that producers can benefit from canola to boost soil health, and he noted that a Kansas State University study that said wheat following canola has been known to push yield 10 to 20% when compared against continuous crop wheat.
For more information, he encouraged producers to visit the company’s website at www.scoular.com.
