Europe Heatwave to Cut Rapeseed Harvest

The summer heatwave in Europe is threatening the region’s rapeseed crops that could cause reduced harvest than previously projected and higher rapeseed prices.  In France and Germany, and outside the EU in Ukraine, rapeseed crop yields and in some cases oil content were expected to be low, according to German Union zur Forderung von-Oel-und Protein pflanzen (UFOP).

Based on data from Agrarmarkt-Informations-gesellschaft (AMI), the yield decline could range from 10% to 40%, depending on the region.  Market observers expect Germany to see the smallest rapeseed harvest in 10 years.  German post-farm rapeseed prices for the 2018 crop had already increased  substantially since the beginning of July, going up    11 (US12.8) to    347/ton (US$404). 

In a related development, the EU Commission (EC) has implemented two measures aimed at helping farmers struggling with the ongoing drought conditions in Europe. The first measure would enable farmers to receive 70% of their direct support payment and 85% of payments under rural development by mid-October, instead of the usual December date, which was intended to support harshly impacted farmer cash flows.  The second measure granted exemptions from specific greening requirements, allowing animal feed production on land that would normally not be permitted for such use.