WASHINGTON, DC – USDA forecasts record U.S. canola production at 5.4 billion pounds for 2026/27 as farmers expand acreage to meet stronger demand from food and biofuel markets.
The Economic Research Service says North Dakota planted 2.33 million acres, up 29% from last year. Acreage also increased in Minnesota, Montana, Washington, Oklahoma and Kansas, while national yield is forecast 10% lower at 1,811 pounds per acre.
USDA projects domestic canola crush at 5.3 billion pounds, up 11% from 2025/26. A new crush facility is expected to come online during the marketing year, adding processing capacity.
Biofuel use of canola oil is forecast to rise to 5.6 billion pounds from 3.7 billion last year. USDA says stronger renewable-fuel demand and eligibility for the 45Z producer tax credit are supporting the increase.
Canola exports are also forecast higher at 900 million pounds, while domestic use of canola oil for food, feed and other industrial uses is expected to rise 4%.
Farm-Level Takeaway: Record canola production and expanding crush capacity are positioning growers to benefit from stronger food and biofuel demand.