Nitrogen (N) is the most important factor limiting crop productivity worldwide. The ability of plants to acquire N from applied fertilizers is one of the critical steps limiting the efficient use of nitrogen. To improve N use efficiency, genetically modified plants that overexpress alanine aminotransferase (AlaAT) were engineered by introducing a barley AlaAT cDNA driven by a canola root specific promoter (btg26). Compared with wild-type canola, transgenic plants had increased biomass and seed yield both in the laboratory and field under low N conditions, whereas no differences were observed under high N. The transgenics also had increased nitrate influx. These changes resulted in a 40% decrease in the amount of applied nitrogen fertilizer required under field conditions to achieve yields equivalent to wild-type plants.