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Is canola biodiesel good for Canadian farmers and the economy?

April 26, 2017biodiesel Canadian Canola economy farmers good

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Is canola biodiesel good for Canadian farmers and the economy?

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Canada currently exports 85% of the canola it produces either as seed, or oil and meal. Japan is our largest seed customer and the US our largest oil customer. The federal renewable fuel standard will provide fundamental, long-term support for Canadian farmers by creating inelastic demand. Canola is vulnerable to borders shutting because of tariffs and non-tariff trade barriers. Made-in-Canada canola biodiesel will stabilize demand and help increase the value-added industry that is already expanding in Canada in anticipation of increased use of canola in North America. Economic analysis shows that every $1 invested in biodiesel infrastructure returns $2 of economic activity in construction and supporting industries. Also, the meal produced from canola crushing is a high protein livestock feed that can replace more expensive imported protein meal in dairy and hog rations.