Skyhawk 172/Cutlass 172
Flight Crew Flight Instructor; Flight Crew Multiengine; Flight Crew Instrument
Flight Crew Last 90 Days 45; Flight Crew Total 3000; Flight Crew Type 300
Distraction; Situational Awareness
Conflict NMAC; Inflight Event / Encounter Other / Unknown
Flight Crew Took Evasive Action
Environment - Non Weather Related
While taxiing with a student; I heard the skydiving pilot calling a 2 minutes warning to drop.  When ready to take off; I could see some canopies [parachutes] deploying and some established fully deployed at what I considered to be a safe altitude.  As the student advanced the throttle; I observed a canopy starting to spin down aggressively.  As the student initiated the climb out; this tandem canopy (I clearly saw the 2 people) made an aggressive turn over the runway and dropped right in front of the nose of the airplane close enough to demand a radical maneuver to avoid the imminent collision.  I yanked the controls from my student and banked the airplane some 90 degrees to initiate a right turn away from the canopy while pushing the nose down to avoid a stall 60 feet above the ground.  After the turn; I had to quickly turn back to the runway because I lost track of all the other canopies.  I was able to regain runway centerline and finish the climb out without incident.
An instructor and his student suffered a close encounter with a tandem parachute drop shortly after takeoff.