Non-GM canola plantings surge as price premium continues

WA grain farmers are slowing down their plantings of genetically modified canola for the first time, enticed by a price premium of up to $100 per tonne for non-GM canola.

More than 1.73 million hectares of canola has been planted across WA paddocks this year, with GM plantings stalling and non-GM plantings increasing as farmers weigh up agronomics and financial pay-off.

York agronomist Michael Lamond said a significant price premium for the non-genetically modified canola seed had continued to hold up at planting time — when it normally drops back to be closer to the price of GM canola.

“The main driver (for the price premium) has been the drought in South Australia and Victoria, which has meant there is less canola being grown over there,” Mr Lamond said.

“Our non-GM canola goes to Europe, and that market needs grain . . . hence the higher prices.”

In a traditional year, more than 75 per cent of all canola seeded in WA is GM.

But non-GM canola seed is still preferred by many farmers in the Eastern States, with dry conditions in South Australia and Victoria meaning demand for non-GM canola in WA is likely to remain high.

Mr Lamond said while WA farmers’ non-GM plantings had increased, the total figure had been “held back” by dry conditions in the Mid West.

“Total plantings of canola have increased slightly in WA this year, compared to 2024,” he said.

“The split between GM and non-GM has widened slightly as well due to the potential premium for non-GM canola this harvest.”

Mr Lamond said it was the first time the number of hectares seeded to GM canola had stalled since the technology was introduced in WA in 2008.

In the years since, some farmers have opted to grow conventional Clearfield canola (CL) or hybrid Triazine Tolerant (TT) canola hybrid canola varieties tolerant to glyphosate or glufosinate.

These hybrid varieties are generally higher yielding, but come with a price reduction in the market.

“Some farmers have gone non-GM partially because of the price difference . . . but they have had to weigh up the yield difference,” Mr Lamond said.

“There has certainly been a decrease in the area planted to GM canola, and if you add that to the increase in non-GM canola then it could be the most significant change in plantings for five to 10 years.

“It is an interesting story because this hasn’t happened before.

“It is the first time farmers have slowed down their adoption of GM canola, irrespective of price.”

Mr Lamond said farmers had been carefully weighing up the agronomic benefits of GM canola compared with the increased prices on offer for non-GM canola seed post-harvest.

A large price premium for non-GM canola peaked at more than $100 per tonne during the most recent harvest.

Mecardo analyst Angus Brown said conventional prices were “yet to move” significantly.

WA Nutrien seed category manager and Seednet regional manager David Clegg said while there was still non-GM canola seed available, popular varieties of Clearfield canola seed were sold out across the State, with significant demand between Kojonup and Esperance.

“More hectares of TT and CL tolerant Hybrid canola were planted in southern areas but GM canola hectares remain similar across the state.”

Mr Clegg said canola seed supply — which some farmers believe can be challenging some years — had been “perfect this year”.

“Some Clearfield seed has been sold out but there have been other non-GM seed available,” he said.

“The dry conditions in the Northern ag region has meant there has been less demand in that area.”

The trend towards non-GM canola comes at a time when farmers in the Mid West — where conditions were dry until late May — pulled back their overall canola plantings, and those in the Great Southern and Esperance areas increased theirs.