1. Agronomic & Economic Impact of Transgenic Canola JoAnne Buth Vice President, Crop Production www.canola-council.org Canola Council of Canada

2. Brassica napus Brassica rapa

4. Transgenic Canola Study Serecon Consulting & Koch Paul Assoc. Serecon Consulting & Koch Paul Assoc. Coordinated by the Canola Council of Canada with assistance from: Coordinated by the Canola Council of Canada with assistance from: Manitoba, Saskatchewan and Alberta growers & provincial specialists, Aventis & Monsanto Manitoba, Saskatchewan and Alberta growers & provincial specialists, Aventis & Monsanto

5. Transgenic Canola Study For this study transgenic = Roundup Ready & Liberty Link For this study transgenic = Roundup Ready & Liberty Link Clearfield (SMART) not included = developed by mutagenesis Clearfield (SMART) not included = developed by mutagenesis Conventional - not SMART, RR, LL, Bx Conventional - not SMART, RR, LL, Bx

6. Transgenic Canola Study 650 growers surveyed across western Canada 650 growers surveyed across western Canada  Half conventional/ half transgenic  > 80 acres  One field per grower 13 case studies - financial records 1997-2000 13 case studies - financial records 1997-2000

7. Transgenic Canola Study Variety, seeding rates, seed costs Variety, seeding rates, seed costs Yield, dockage, grade Yield, dockage, grade Self reported net returns per acre Self reported net returns per acre Summer fallow practices in 1999 Summer fallow practices in 1999 Fertilizer use Fertilizer use Number of field operations - tillage, harrowing, spraying Number of field operations - tillage, harrowing, spraying

8. Transgenic Canola Study Weed control - mechanical & cultural Weed control - mechanical & cultural History of transgenic use History of transgenic use Changes since adopting transgenics Changes since adopting transgenics Benefits and disadvantages Benefits and disadvantages

9. Survey Says... Reasons for growing transgenics: Reasons for growing transgenics:  Weed control  Better yield, more return, profit  Reduce costs  Clean up fields  Reduce tillage

10. Survey Says… Reasons for not growing transgenics: Reasons for not growing transgenics:  Cost of the TUA  Overall costs  No need to change  Market access  Weed resistance

11. Seeding Rates

12. Seed & Fertilizer Costs Seed costs for transgenic $4.52 more than conventional ($ 16.21 v.s $11.69) Seed costs for transgenic $4.52 more than conventional ($ 16.21 v.s $11.69) Slight increase in fertilizer ($1.72/acre) - includes 1999 summerfallow Slight increase in fertilizer ($1.72/acre) - includes 1999 summerfallow Summerfallow Summerfallow  Transgenic - 18%  Conventional - 36%

13. Herbicides 40% reduction in herbicide costs (includes summerfallow in 1999) 40% reduction in herbicide costs (includes summerfallow in 1999)  Transgenic - $16.22  Conventional $21.72 Number of applications Number of applications  Transgenic - 2.07  Conventional -1.78 Reduced herbicide use - 6,000 tonnes in 2000 Reduced herbicide use - 6,000 tonnes in 2000

14. Soil Conservation

15. Tillage Transgenic - fewer tillage passes Transgenic - fewer tillage passes Direct-seeding Direct-seeding  Transgenic - 50%  Conventional - 35% 2.6 million acres with fewer tillage passes 2.6 million acres with fewer tillage passes

16. Fuel Transgenic growers used less fuel Transgenic growers used less fuel  fewer field operations- tillage, summerfallow 31.2 million litres of fuel saved in 2000 31.2 million litres of fuel saved in 2000 $13.1 million (42 cents/L) saved $13.1 million (42 cents/L) saved

17. Commodity Prices Transgenic growers have increased their acreage and production Transgenic growers have increased their acreage and production However, increased production has not impacted the price of canola However, increased production has not impacted the price of canola

19. Yield & Dockage Yield - 10% increase (3 bu/acre) Yield - 10% increase (3 bu/acre)  Transgenic - 29.25 bu/acre  Conventional - 26.54 bu/acre Dockage - decrease Dockage - decrease  Transgenic - 3.77%  Conventional 5.14%

20. Returns Transgenic Grower reported + $5.80/ac net return (yield x price - inputs, labour, etc.) Transgenic Grower reported + $5.80/ac net return (yield x price - inputs, labour, etc.)  Transgenic $19.92  Conventional $ 14.12 Economic model - 1997-2000 Economic model - 1997-2000  $10.62 advantage (gross margin)

21. Impact on the Industry 1997-2000 1997-2000 Grower (direct) - $144M to $249M Grower (direct) - $144M to $249M Indirect - $58 to $215M Indirect - $58 to $215M Total - up to $464 M Total - up to $464 M

22. The Bottom Line Higher yield, lower dockage, better returns Higher yield, lower dockage, better returns Less tillage Less tillage Less herbicide Less herbicide Less fuel Less fuel Benefits worth millions of dollars Benefits worth millions of dollars