Potential Of Canola In Michigan
AbstractThis study consists of four different aspects of canola in Michigan with special emphasis on northern Michigan. The economic feasibility of canola as an alternative cash crop, potential canola growing area, feasibility of establishing canola processing plant(s) in northern Michigan and the canola marketing situation in Michigan were appraised. Secondary data, previous research results, key informant interviews, informal visits, expert opinions and survey data were used to study these aspects of canola. Review of past agronomic research results showed that canola can successfully be grown in various part of Michigan, including northern Michigan. Break-even analysis of canola with other alternative crops like wheat, corn, oats and soybeans suggested that canola can be more profitable than these crops whereas it cannot compete with kidney beans, dry beans and potatoes. Key informant surveys revealed that out of 598,000 acres of cultivated land in Northern Michigan, approximately 10,000 acres would be shifted to growing canola immediately, under the assumption of no marketing problems. The area would be sufficient for supplying canola to run two small to medium scale processing plants at full capacity. The economic feasibility of establishing canola processing plants has been evaluated in depth. Net present value (NPV) and internal rates (IRR) of return of proposed operations are encouraging. Various possible scenarios have been analyzed and it is concluded that canola processing has potential, particularly in northern Michigan. The case studies with grain elevators showed that canola handling might be profitable and that there is good potential for canola in Michigan. The major bottleneck in this sector is the lack of processing facilities in Michigan. Farmers are presently reluctant to grow canola due to perceived difficulties in marketing. Grain elevators are not handling canola at present time because of the very small volume of production. All of the respondents believed that the development of canola processing plant(s) or a strong marketing chain is necessary to stimulate the canola sub-sector in Michigan.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Michigan State University, Department of Agricultural, Food, and Resource Economics in its series Graduate Research Masters Degree Plan B Papers with number 11051.
Date of creation: 1996
Date of revision:
Contact details of provider:
Postal: Justin S. Morrill Hall of Agriculture, 446 West Circle Dr., Rm 202, East Lansing, MI 48824-1039
Phone: (517) 355-4563
Fax: (517) 432-1800
Web page: http://www.aec.msu.edu/agecon/
More information through EDIRC
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.