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Congress Passes Reconciliation Bill with Big Wins for Canola
Senate Reconciliation Bill Increases Canola Reference Prices and Expands Farm Program Support
On Thursday, July 3, the House voted to pass the Senate version of the much-anticipated Reconciliation package. The bill now goes to President Trump for his signature. The bill provides an estimated $66 billion increase in spending on Farm Bill programs above the current baseline. Highlights of the final bill include:
Reference Prices - The Reference Price under the Price Loss Coverage (PLC) program are increased with the Other Oilseeds category, which includes canola, moving from the current $20.15 per pound to $23.75. The bill also bolsters the Effective Reference Price escalator provisions and incorporates an annual automatic .5% increase in Reference Prices beginning in 2031.
ARC - Trigger increased from 86% to 90%.
The bill would make the new ARC and PLC provisions available for the 2025 crop year. Regardless of what a grower signed up for earlier this year, they would get the higher of ARC or PLC assistance for 2025. This would be for 2025 only, and annual program elections would resume in 2026 and after.
Base Acres - Farmers will have the opportunity to voluntarily add base acres using the average of their plantings from 2019 - 2023.
Payment Limits - Increased from $125,000 to $155,000. Adjusted annually for inflation.
Crop Insurance - The premium assistance levels for individual coverage is increased by 3-5% and the premium assistance for the Supplemental Coverage Option (SCO) is increased from 65% to 80%.
MAP/FMD - Funding is provided equivalent to a doubling of the current Market Access Program and Foreign Market Development (MAP/FMD).
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Reconciliation Bill Biofuels Credit Overhaul Benefits Canola and Domestic Feedstock
The Reconciliation bill includes targeted improvements to the Clean Fuels Production tax credit (45Z), especially favorable to canola and other low-carbon feedstocks. For fuel produced after December 31, 2025, emissions attributed to indirect land use change (ILUC) will no longer be factored into credit calculations. Additionally, to qualify for the 45Z credit, fuels must be made exclusively from feedstocks grown in the U.S., Canada or Mexico, replacing the earlier Senate version that allowed foreign feedstocks but reduced the credit. The credit is extended through 2029 and retains its transferability, a key element for biofuels producers. While the House version and earlier Senate proposals extended 45Z through 2031, this version strikes a balance between industry needs and fiscal constraints. Overall, the revised credit framework offers stronger, more predictable incentives for canola-based renewable fuels and secures a stronger market for North American-grown oilseeds.
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Reconciliation Tax Package Includes Wins for Farmers and Small Businesses
Beyond agriculture-specific provisions, the Reconciliation bill includes a wide array of tax reforms aimed at supporting farmers, rural economies, and small businesses. Key wins include the permanent extension of the 20% Section 199A business income deduction for small businesses, permanent reinstatement of 100% bonus depreciation, and increased Section 179 expensing allowances of up to $2.5 million for equipment and software. The bill also maintains stepped-up basis, current capital gains rates, and like-kind exchanges, tools necessary for farm succession and asset planning. The estate tax exemption would rise to $15 million per individual and $30 million per couple, adjusted for inflation and made permanent. These tax provisions provide long-term planning certainty and economic benefits for producers.
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Changes Initiated for H-2A Program and Foreign Worker Certifications
The U.S. Department of Labor has proposed a rollback of H-2A program policies implemented under the previous Biden Administration, some of which were challenged in court and subject to a preliminary injunctions. The new proposal from DoL, which has a 60-day public comment period, would revert the adverse effect wage rate calculations — which function as the minimum wage rates for H-2A jobs — back to how they were done before June 2024.
The Department of Labor has also recently announced the creation of a new office to handle work visas in an effort to streamline the process of hiring non-citizens for farmwork and other jobs for which American workers are not available. The new office is designed to facilitate coordination among the various agencies involved in foreign worker certifications and serve as a centralized hub for businesses seeking assistance.
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House Passes Ag Appropriations Bill with Canola Priorities Included
The House Ag Appropriations Bill passed out of committee on Monday, June 24, by a 35–27 vote and includes continued support for canola priorities. The bill keeps funding for the Supplemental and Alternative Crops program at $2 million and, as in past years, includes report language supporting nationally coordinated, regionally managed canola research and extension. The report also directs NIFA to continue working with stakeholders and to focus research on areas where canola production is either established or shows strong potential for growth. While the bill signals House Republicans’ intent to prioritize these programs, the path forward remains uncertain. With little movement expected on FY26 appropriations overall, it’s likely we’ll see another year-long continuing resolution that maintains current funding levels.
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U.S. Canola, Biofuel Industry Applauds EPA’s Proposed RFS Volumes for 2026–2027
On June 13, 2025, the EPA released its proposed Renewable Fuel Standard (RFS) volumes for 2026 and 2027, calling for increases in cellulosic biofuel, biomass-based diesel, advanced biofuel, and total renewable fuel. The proposal also includes key regulatory changes, such as a partial waiver lowering the 2025 cellulosic target, a reduction in RIN credits for imported fuels and foreign feedstocks, and the removal of renewable electricity (eRINs) from RFS eligibility.
The U.S. Canola Association welcomed the proposal, citing its potential to expand demand for canola-based biodiesel and strengthen rural economies. The National Oilseed Processors Association (NOPA) and Clean Fuels Alliance America also voiced support, highlighting how the proposed volumes reflect the industry's growing production capacity and the importance of prioritizing domestic feedstocks to meet climate and energy goals.
Read releases and statements from:
U.S. Canola - https://bit.ly/3TbsAQd
NOPA - https://bit.ly/444mur6
Clean Fuels - https://bit.ly/3HW9JWR
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Agricultural Stakeholders Call for Transparency in MAHA Commission
On June 17, 2025, U.S. Canola joined more than 250 U.S. farm, ranch and food producer groups in sending a joint letter to Secretaries Kennedy and Rollins, and EPA Administrator Zeldin, expressing deep concern over the “Make America Healthy Again” (MAHA) Commission’s latest report. They argue that the process lacked transparency, excluded key stakeholders, and relied on flawed or nonexistent studies, thereby risking unjustified public distrust in U.S. agriculture and potentially increasing food costs. The groups urge the administration to include agricultural voices in future policymaking, open reports to public commentary, and emphasize that continued innovation and science have long ensured a safe, efficient and affordable food supply.
Read more: https://bit.ly/44bm5TP
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Fedorchak Earns Praise for Championing Biofuels
Tom Malecha, president of North Dakota Soybean Processors, wrote a letter in Agweek thanking Rep. Julie Fedorchak (R‑ND) for her strong advocacy on behalf of biofuels. As co-chair of the Congressional Biofuels Caucus, Fedorchak urged the EPA to raise the Renewable Volume Obligation for biomass-based diesel to 5.25 billion gallons, well above the current level. This effort, supported by North Dakota Canola and other ag and energy stakeholders, reflects broad recognition that the industry can meet these targets. Malecha noted the economic benefits of the proposed increase, including lower fuel costs, rural job creation, and stronger markets for crops like canola and soybeans, all of which would support farmers and processing facilities across the state.
Read more: https://bit.ly/4nffLC9
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NOPA and CRA Push Back on FDA Commissioner’s Mischaracterization of Seed Oils
The National Oilseed Processors Association (NOPA) and Corn Refiners Association (CRA) criticized FDA Commissioner Marty Makary for describing seed oils as "generally... pro‑inflammatory." They called the statement misleading and not supported by science, noting that large population and intervention studies show seed oils, which are rich in polyunsaturated fats, help protect against chronic diseases and support public health. NOPA and CRA emphasized that seed oils have been part of the global food supply for decades and are safe and nutritious, urging the public to trust science-backed nutrition and expressing concern that the comments could unduly alarm consumers.
Read more: https://bit.ly/3SIWBXm
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Trade and Tariff Update
Trade activity has been relatively quiet this month, but several key deadlines are looming. The pause on the 10% reciprocal tariffs is set to expire on July 9, with uncertainty surrounding what comes next. Further complicating the situation, a court-ordered stay on existing tariffs remains in effect through July 31 while the appeals court considers whether the administration overstepped its authority under the International Emergency Economic Powers Act (IEEPA). In the meantime, the administration is encouraging trade partners to submit proposals and finalize agreements before July 9.
Canada has also imposed a deadline of July 21 to reach a trade agreement with the U.S. If no deal is reached, they’re threatening to increase tariffs on U.S. steel and aluminum. Although many Canadian goods are exempt from tariffs under the USMCA, Canada appears to be focused on reducing Section 232 and fentanyl-related tariffs, as well as addressing other items outside the scope of the USMCA.
Adding to the tension, Canada’s Parliament recently passed legislation requiring parliamentary approval before the Prime Minister can modify tariff rate quotas, a move likely aimed at upcoming USMCA negotiations, particularly in response to longstanding U.S. concerns about Canadian dairy quotas.
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BASF Introduces New Yellow-Seeded Canola Hybrid for U.S. Plains
BASF has announced the development of InVigor Gold, a yellow-seeded canola hybrid designed for production in hotter, drier climates with lower organic soils. The hybrid was tested in field trials from 2022 to 2024 and demonstrated an average yield advantage of approximately 8% compared to standard varieties. InVigor Gold features strong agronomic traits including pod shatter resistance, blackleg protection, heat tolerance, and effective weed control. It is intended for use in wheat rotation systems and could help bring fallow acres in Montana, North Dakota, South Dakota, Nebraska, and Kansas into canola production. Pending regulatory approval, commercial availability in the United States is expected by 2027.
Learn more: https://bit.ly/4l1L3ea
| Growers Encouraged to Scout for Canola Pests | |
The Diamondback moth has migrated into North Dakota in large numbers (> 100 moths per trap per week) in the northeast and north central areas of North Dakota, according to Dr. Jan Knodel of North Dakota State University (NDSU). Canola is most susceptible to injury during the flowering and pod stages of development.
The adult diamondback moth is a small, gray moth, approximately ½ inch long. The newly hatched larva is a light green color.
Economic threshold levels for the early flowering stage are 10 to 15 larvae per square foot (or one to two larvae per plant).
You can also monitor adult moths using a commercial pheromone trap and lure from pheromone supply companies. Field scouting for larvae is encouraged if you capture more than 100 moths per trap per week.
NDSU is running a canola insect trapping network with its IPM Crop Survey Program and trapping results will be posted weekly here: http://bit.ly/4lddXIu
If farmers need to treat diamondback moth, more information on insecticides can be found in NDSU’s 2025 North Dakota Field Crop Insect Management Guide: http://bit.ly/40pwMzC
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States Advance Food Labeling Laws Targeting Additives and Seed Oils
Texas and Louisiana have recently passed new food labeling legislation. Texas SB 25 requires products containing any of 44 ingredients that are currently banned in the EU, UK, or Canada to carry a warning label. These ingredients include synthetic food dyes and bleached flour. Seed oils are not currently included in the list of ingredients that require disclosure under Texas SB 25.
In Louisiana, SB 14 was signed into law in June, requiring all restaurants and food establishments to disclose whether they use seed oils in cooking. Another bill, SB 117, sought to ban the sale and serving of ultra-processed foods, including those made with seed oils, in public schools. However, the governor ultimately vetoed the bill.
The Seed Oils Coalition, of which USCA is a member, continues to monitor legislation that could impact canola and other seed oils.
Read more: http://bit.ly/3GrfJq8
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Seed Oil Misinformation Takes Toll on Farmers, Industry Leaders Push Back
As claims about the supposed dangers of seed oils gain traction through social media and the MAHA movement, farmers and industry leaders are voicing concern over declining demand and growing public confusion. In a recent interview with NPR, U.S. Canola Association President Tim Mickelson expressed frustration, saying, “Everything we do revolves around science. So the MAHA movement, it’s kind of been frustrating for me to watch because those decisions are based off of fear, speculation, and information that is not backed by science.” Mickelson estimated that anti-seed oil rhetoric has already led to about a 5% drop in canola sales. While seed oils like canola, soybean, and sunflower are backed by decades of nutrition science, producers worry that fear-based messaging could harm both public health and rural economies. Industry groups are stepping up efforts to defend seed oils and support science-based dietary guidance.
Listen to the NPR interview: https://bit.ly/3HV24YP
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New Research Finds Linoleic Acid in Seed Oils May Lower Risk of Heart Disease and Diabetes
Two new studies presented at the American Society for Nutrition’s annual meeting suggest that linoleic acid, the main fatty acid found in seed oils such as soybean, canola, corn, and sunflower oil, may help reduce risk factors linked to heart disease and type 2 diabetes. The research found improvements in blood glucose, insulin levels, insulin resistance, and markers of inflammation. These findings challenge recent claims that seed oils are harmful. Experts emphasize that health concerns are more closely tied to the types of foods cooked in seed oils, like fried or highly processed snacks, rather than the oils themselves. Nutrition professionals continue to recommend moderate use of seed oils as part of a balanced diet that includes whole-food sources of healthy fats such as nuts, seeds and fish.
Read the Health article: https://bit.ly/4k3AVQT
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NYT Identifies Canola as One of the Most Climate-Friendly Cooking Oils
A recent New York Times article ranks canola oil among the leading choices for environmental sustainability. Drawing on a 2022 global study, the piece highlights canola and sunflower oil as the best options for reducing greenhouse gas emissions and minimizing land use. The sustainability advantage is strongest when canola is produced using no-till or low-till farming methods, practices that are now used on approximately two-thirds of North American canola acreage. Additionally, canola oil is praised for its health credentials because of its low saturated fat content, reinforcing its dual role in supporting both environmental and public health goals.
Read the NYT article: https://bit.ly/4nc20Ea
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Nutrition Expert Defends Seed Oils on Linder Farm Network Podcast
Seed oils, such as canola, sunflower, and soybean, are essential staples in diets around the world. Still, they've recently come under scrutiny. On the June 2 episode of the Field Talk podcast, Dr. Mark Messina, director of nutrition science and research at Soy Nutrition Institute Global, joins the Linder Farm Network to share science-based insights on seed oil nutrition and push back against misinformation.
Listen to the podcast: https://bit.ly/3ZVKha4
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Unlocking the Truth: Seed Oils - Are They Healthy?
In a recent article from Best Food Facts, Dr. Connie Weaver of San Diego State University explains how common seed oils such as soybean, corn, canola, and sunflower can be part of a healthy diet. These oils offer high smoke points, long shelf life, and are rich in unsaturated fats and essential omega-6 linoleic acid. Dr. Weaver addresses common concerns and highlights that omega-6 fats are not harmful when consumed in balance and may even reduce cardiovascular risk. Compared to animal fats, seed oils provide heart-healthy polyunsaturated fats, making them a smart choice in cooking. The article emphasizes that when used and stored properly, seed oils support a balanced, nutrient-rich diet.
Read the Best Food Facts article: https://bit.ly/4nx0UmM
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2025 Acreage Report Released by
USDA - NASS
On June 30, 2025, the USDA’s National Agricultural Statistics Service (NASS) released its latest Acreage Report, showing a 13.2% decline in U.S. canola planted acres compared to the previous year. The decrease may reflect a combination of global market uncertainty, lower commodity prices, and shifting producer decisions in response to evolving trade and policy dynamics. However, key policy developments that support canola, such as finalized Renewable Fuel Standard (RFS) volumes and the extension of the biofuels tax credit, were announced after spring planting decisions had been made. The delayed timing may have limited canola’s competitiveness during the planting season, despite improving market signals for the crop in the longer term.
Download report: http://bit.ly/4nspl4z
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Major Agribusiness Merger: Bunge and Viterra Complete Strategic Deal
Bunge has completed its merger with Viterra, creating a global leader in food, feed and fuel supply chains. The combined companies will bring together complementary assets, a broader market reach and enhanced capabilities to better serve farmers and customers worldwide. Bunge CEO Greg Heckman will lead the new organization, which is expected to benefit from streamlined operations, a stronger financial profile and expanded global impact.
Read more: https://bit.ly/44hqwMU
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Trade Tensions Push Canadian Farmers to Swap Canola for Spring Wheat
In a recent Reuters article, Rising trade tensions with China and the United States are accelerating a shift among Canadian farmers from canola to spring wheat. With new tariffs threatening canola exports, worth $14.5 billion in 2024, farmers are opting for wheat, which offers more stable global demand and fewer trade risks. Analysts suggest that this trend could result in a significant reallocation of farmland in Western Canada. Improved wheat varieties and stronger government support are helping to fuel the transition, while U.S. spring wheat acreage is expected to fall to its lowest level since 1970.
Read more: http://bit.ly/3GijGNW
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USCA works to support and advance U.S. canola production, marketing, processing, and use through government and industry relations. Since its establishment in 1989, the association has helped domestic canola acreage grow from virtually zero to about 2 million. To learn more about USCA, go to: www.UScanola.com
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