Australian canola growers adopt record rotations for higher margins

Australian canola growers are increasingly utilizing canola-on-canola rotations to target higher gross margins, despite the inherent risks of fungal diseases like blackleg. According to a report from Digital Agriculture Services (DAS), the proportion of canola planted on canola has reached a record 2.1 per cent, covering approximately 92,000 hectares.

While the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) reported that total area planted to canola fell 6 per cent to 3.5 million hectares due to dry conditions in New South Wales, plantings increased in South Australia, Victoria, and Western Australia where soil moisture was more adequate.

Data from DAS indicates that Western Australia is the primary driver of this trend, accounting for 78 per cent of the nation's repeat canola plantings. Growers are opting for these rotations because expected returns are higher than those of cereal crops, even when accounting for high fertilizer costs and requirements.