Michigan Canola – Food or Fuel?
Last week I visited a canola test farm in central Michigan. Michigan State University is working with local farmers in an effort to establish a canola growing industry and is currently determining which variety of canola grows best in the local soils.
The draw of this effort is that canola can be grown both as a food crop and as a fuel crop. Thus, local farmers would have the opportunity to sell either into the food industry or into the bio-diesel marketplace. Having this option (in theory) provides greater price stability/options for a farmer growing the crop. This program highlights the role Michigan State University is playing in bringing to market ideas and strategies to assist the Michigan economy, particularly its second largest industry - agriculture.
My takeaway from my visit is that farming is a very difficult and uncertain business which in some respects is akin to going to Las Vegas. For example, on the day of my canola farm tour, all the farmers in attendance were in agreement that unless rains came within a day or two, the canola crop - as well as their own crops - would suffer and there would be direct consequences to their bottom lines. Interestingly, three people from Kellogg were also on this canola tour scoping out the opportunity to buy canola locally.
