locked, dammed & threatened


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LOCKED, DAMMED & THREATENED See more on page 4

ADM’S PRESIDENT OF TRANSPORTATION CALLS FOR INCREASED FLEXIBILITY to keep exports moving 4

Publisher

Neil Caskey

Editorial Director

Jeff Brown

Staff Writers

Kelly Brandt Erin Hamm Nicole Kraus Robin Miller Missy Morgan Margaret Reeb Laura Schafer Paul Spooner

THAT’S WHAT BEAN SAID... a series

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2 John Butler USB farmer-leader who raises soybeans, corn, cotton, wheat and cattle on his farm in Dyersburg, Tenn.

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“The drought really highlighted some concerns that are common among those of us who use the rivers to move our products,” explains Keith Tapp, Kentucky soybean farmer and soy checkoff farmer-leader. “These rivers matter to farmers’ profitability, and it’s important to do everything we can to keep the traffic on them operating smoothly and efficiently.” Historically, the rails, roads and rivers in the United States have provided U.S. agriculture with a competitive edge. This web of options for moving products from areas of surplus to areas of deficit has been reliable, efficient and affordable. But these pieces are aging and in desperate need of repair and upgrades to meet today’s standards of larger shipments and larger vessels.

Sound the Alarm on Locks and Dams The inland-waterway system grabbed attention this winter as the lack of precipitation took its toll on shipping. The situation on the Mississippi showed the importance of the country’s 25,320 miles of inland waterways to the U.S. economy. But the problems along the U.S. waterways go beyond the recent drought. Many of the locks and dams that harness the rivers were built in the 1930s and are well beyond a usable life span of such structures. The age of the locks and dams shows in the increasing hours of unplanned closures for maintenance. Unplanned closures on the Ohio River have tripled since 2000. These closures don’t just waste

time - they can get expensive, too. This fall, Lock 27 on the Mississippi River closed for five days for emergency repairs. The U.S. Army Corps of Engineers estimates that a closure such as this could cost $2.8 million per day. A major shutdown or disruption in river transport would cause a lot of headaches for companies that use these bodies of water to move commodities, such as soybeans, from the Midwest to export position in New Orleans. But it’s going to be the farmers and the buyers who pay the price. “The real problem is anytime you go away from the most efficient and effective way of doing something to the next-best way, you typically encounter a higher cost,” says Rick Calhoun

of Cargo Carriers, a business of Cargill, Inc. Calhoun explains that cost most often impacts the bottom line of the seller or the buyer, meaning lower prices farmers receive for their crops or higher prices paid by consumers. But it’s not just the price shifts that concern Calhoun – it’s the ability of the United States to continue to compete on the global level. “It’s important for the United States to get our infrastructure up to where we can actually participate on the world stage and be a part of the growth of the world’s exports,” adds Calhoun, who oversees the 1,300 barges that Cargill uses in combination with trucks, rails and oceangoing vessels to move products. “Let’s make

OVER BUDGET AND LATE: The Olmsted Project One of the most obvious examples of shortcomings when it comes to the U.S. lock-and-dam system is the Olmsted Project at locks 52 and 53 on the Ohio River near Paducah, Ky. 4

When the project was first funded, in 1987, the original cost estimate was $775 million with a completion date of 2016. Work began on the locks in the early ‘90s. Due to construction challenges and

low original bids, the latest estimated cost from October 2011 came in at $3.1 billion. The locks are scheduled to be operational by 2020, but work to remove the old locks will continue until 2024.

The Olmsted Project is expected to go over budget by $2.3 billion and finish four years late.

carrying certain commodities in specific geographic areas. These barriers and the inability to switch between some lines inhibit competition and, in turn, can lead to an imbalanced market. Lifting these barriers could help U.S. railways to make the most of their own investments. According to a recent checkoff-funded study, in 2011 alone Class I railroads spent a total of $23 billion to maintain and improve their infrastructure. These private investments have helped to ease concerns that users of the rails, such as ADM, might have. sure we don’t get behind.”

Private Investment Supports Rails When it comes to railway movements, it’s not so much the actual rails that draw concern from ADM’s president of transportation, Scott Fredericksen. It’s the lack of cooperation, which he says hinders market accessibility.

“There are only seven Class I railroads in the United States,” explains Fredericksen. “They need to work with the short-line railroads, stakeholders, local industries and each other to provide fluidity and greater market access.”

Some soy-checkoff studies have suggested that rail traffic could increase if another major mode of transportation, such as the inland waterways, became unavailable. Already railroads heading to the Pacific Northwest, where soy bound for China is exported, are moving 68 percent of soybeans transported by rail. With exports to China expected to double by 2020/2021, rail carloads

of soy could increase by 36 percent. Hopefully U.S. railroads and investments will be able to keep up with this anticipated growth.

“I’m optimistic about what U.S. railroads provide and what they will provide in the In addition to the lack of future,” adds Fredericksen. cooperation, another hurdle is “Being as there’s only a few what Fredericksen refers to as of them left, if there were “white-paper barriers,” which no barriers and no conprohibit some rail lines from straints on market access,

we’d all be better off and the United States would grow and the railroads would grow proportionally, too.”

Maintaining the Advantage For generations, the U.S. transportation system has been the one that other countries have looked to as the example of how it’s done. Now, they have begun to look at their own transportation needs and are making investments to expand ports, repair rails and make other improvements. These improvements and investments are one area where competitors could match and perhaps even eclipse the U.S. “It’s so important that we as soybean farmers continue to talk about how we need our rivers, locks, roads and railways all to function together,” adds Tapp. “Transportation is an important part of U.S. soy’s competitive edge on the world stage.” The U.S. transportation infrastructure has long been a great advantage for U.S. soybean farmers. The reliability of these pieces has allowed shipments to get out to end users in a timely manner. But because of the vastness of the United States, farmers need all of the pieces to be competitive and must take advantage of the opportunities of a growing global population and growing global demand for quality soy products. “We’ve got great seed technology, great farming practices and some of the greatest farmland in the world, but if we don’t have an infrastructure that parallels that, we’re not going to get the full promise of what we could for the country,” says Calhoun.

Approximately 44 percent of U.S. soy exports move through the Panama Canal.

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The Delaware Soybean Board (DSB) will repeat its soybean yield contest this year. The top winner in 2012 was Doug Vanderwende of Greenwood, with a full-season irrigated yield of 79.72 bushels per acre. William Vanderwende of Bridgeville harvested the best full-season non-irrigated yield with 75.9 bu./ac. Check the DSB website for details on the 2013 yield contest. Twenty-one Iowa soybean farmers have stepped forward as volunteer spokespeople for the Iowa Soybean Association’s (ISA’s) Farm and Food Ambassador Team. Through farm tours, letters to editors and more, the program enables Iowa farmers to communicate with consumers about issues that are important to farming. CommonGround farmer-volunteers from Maryland attended the annual B’more Healthy Expo at the Baltimore Convention Center. The expo showcased vendors, programs and opportunities to get people moving and making healthy choices. The volunteers answered questions from attendees about food safety and farming practices. CommonGround is a grassroots organization that puts farm women in position to answer questions about today’s farming and food production. The Michigan Soybean Promotion Committee Yield Contest verified its first 100-plus-bushels-per-acre yield in 2012, grown by Don Stall of Charlotte. Stall says he adopted the “Kip Cullers philosophy” of “experimentation, experimentation, experimentation.” “My take-home message from Cullers’ seminars is not to do what he does, as that is Missouri,” says Stall. “Instead, adopt his philosophies to my situation.” Keep an eye out for the Minnesota Soybean Research and Promotion Council on the airwaves as the organization promotes key issues, such as the environment and biodiesel. The biodiesel television ads promote biodiesel’s impact on the economy and environment. Another series of television commercials focuses on farmers’ commitment to protecting soil and water. The Nebraska Soybean Board (NSB) recently participated in the 2013 Home Builders Association of Lincoln’s Home & Garden Show. The NSB’s booth featured 6

soy-based products. The show helped educate consumers about the many benefits of using biobased products in their homes. More than 250 people attended the New York Corn & Soybean Growers Association’s annual Corn & Soybean Expo, titled “Succeeding at Succession.” The seminar focused on farms’ financial and risk management, and farm-family transitions. The New York Crop Tour will be held Aug. 13 in Union Springs. The North Carolina Soybean Producers Association (NCSPA) launched Weed Free N.C., a new initiative that encourages farmers to use a zero-tolerance approach in eliminating resistant weeds. The NCSPA also held its annual Soybean Producers Forum during the Southern Farm Show, featuring Richard Brock of “The Brock Report” as the guest speaker. Ohio Soy 2020, made possible by the Ohio Soybean Council, the soy checkoff and the Ohio Ag Transportation Coalition, hosted a Locks and Dams Forum to educate participants from the agricultural and transportation industries about the condition and importance of transportation infrastructure to Ohio’s economy. Ohio Soy 2020 works to address issues such as transportation to help ensure the sustainability and competitiveness of Ohio’s soybean industry. The Pennsylvania Soybean Board had an extremely successful Soybean Yield Contest last year. Twenty farmers exceeded yields of 80 bushels per acre. The top award went to Herman and Connie Manbeck, of Berks County, who pushed their yield to 97.06 bu./ac. The Wisconsin Soybean Marketing Board is partnering with Emmy Award-winning television show “Into the Outdoors” to launch “Soy Savvy,” a new soybean school curriculum. Classes completing the lessons are eligible for an all-expenses-paid student field trip to an area soybean farm this spring. The new videos and lessons are available at http://education.wisoybean.org.

Meet with soy checkoff farmer-leaders and learn more about efforts to meet the demands of your top customers at these upcoming industry events:

June 15-19

American Seed Trade Association 130th Annual Convention Nashville, Tenn. www.amseed.com/ mtg_2013ac_index.asp

July 21-27

See For Yourself Program St. Louis www.UnitedSoybean.org

Aug. 6-8

FarmFest Redwood County, Minn.

Aug. 20-22

DakotaFest Mitchell, S.D.

Aug. 27-29

Farm Progress Show Decatur, Ill. www.FarmProgressShow.com

Sept. 10-12

Husker Harvest Days Grand Island, Neb. www.HuskerHarvestDays.com

Sept. 17-19

Ohio Farm Science Review London, Ohio www.fsr.osu.edu Visit www.UnitedSoybean.org for a full list of upcoming events.

Farmers who raise animals take extreme care to keep them healthy and comfortable, and a new series of online videos, called “Vets on Call,” aims to show those efforts to consumers. The first video follows a food-animal veterinarian during an examination of piglets that have just been weaned from their mothers and relocated to a separate barn. The series also includes videos of other veterinarians treating cattle. Help support U.S. soybean farmers’ No. 1 customer, animal agriculture, by watching this video at www.YouTube.com/VetsOnCall, and sharing it with people who need to hear the truth about the treatment of animals on farms.

Tune in 24/7 to see your soybean checkoff at work for you:

1. Go to www.UnitedSoybean.org 2. Scroll down to “Latest Video” 3. Click on “Beyond the Bean On-Air” 4. Enjoy the show!

Hosted by

Mike Adams

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FREEDOM TO OPERATE

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GMO Facts In research conducted last year, the partially soy-checkofffunded Center for Food Integrity found that after they are given educational information, consumers surveyed not only have a greater understanding of biotech, but also a more positive attitude toward the science. The study also offered insight into which facts and messages, when shared with consumers, seem to matter to them most. •C  onsumers have eaten billions of meals and snacks containing ingredients from genetically modified (GM) crops without any evidence of illness or harm. • Leading health and medical organizations around the world agree that GM crops are safe to eat. • The use of GM crops helps keep food affordable.

By Robin Miller

hould foods containing biotechnology-enhanced ingredients be labeled? That’s the key question in an ongoing debate taking place at polling places around the United States. Bills requiring mandatory labeling have been introduced in Congress, and there have also been attempts to place citizens’ initiatives on statewide and local ballots. On one side of the debate are consumers who emphasize their right to know what’s in their food. On the 8

other side are opponents who say expense and logistical challenges make labeling unrealistic and unnecessary. Opponents also cite FDA’s current decision to label foods produced using biotech ingredients only if the food has a significantly different

nutritional property or if the food includes an allergen that consumers would not expect to be present. The national soy checkoff distributes information that helps support understanding of this important science.

The soy checkoff provides information on the safety and benefits of soy improved through the use of biotechnology, which is important to maintaining access to global markets. -Richard Fordyce, MISSOURI SOYBEAN FARMER

“Biotechnology is a key component of U.S. soybean farmers’ ability to continue to produce a sustainable supply of food, feed and fuel,” says Richard Fordyce, chair of the United Soybean Board’s Freedom to Operate Action Team and a soybean farmer from Bethany, Mo. “The soy checkoff provides information on the safety and benefits of soy improved through the use of biotechnology, which is important to maintaining access to global markets.”

AGíS STORY GOES TO WaSHINGTON With help from the soy checkoff, the Smithsonian National Museum of American History will help tell the story of American agriculture. The “American Enterprise” exhibit, opening in 2015, will use objects, graphics and interactive experiences to explore the evolution of farming and other industries from the mid-1700s to the present.

C ONSUMERS WaNT TO HEaR FROM YOU CommonGround recently surveyed 1,000 American moms to gain insights into how they feel about the food choices they make for their families. The results indicate an opportunity for farmers to speak up and help clear up consumer confusion when it comes to what they’re buying at the grocery store. BY THE NUMBERS: • Less than half (44 percent) of 44% moms are familiar 27% with the term “GMO foods.” A quarter (27 percent) have never heard of it. • Nearly 7 out of 10 moms agree that farmers should be a key resource for information related to food and farming, yet only one out of five moms seek information from farmers.

 ILwaY INVESTMENT Ra NEEDED TO MEET AGRICULTUREíS NEEDS Here’s WHERE others in the food industry stand on the issue of labeling foods that contain biotech ingredients: The Grocery Manufacturers Association (GMA) represents more than 300 leading food, beverage and consumer product companies. In a statement released last November, GMA said, “Foods and beverages that contain genetically engineered ingredients have been exhaustively studied, and all of the leading scientific and regulatory bodies, including the U.S. Food and Drug Administration, U.S. Department of Agriculture, the World Health Organization and the American Medical Association, have concluded that these products are safe and are not materially different from their traditional counterparts.” The Food Marketing Institute (FMI) supports federal labeling standards for all food product labels, regardless of the label. FMI represents 1,500 food retailers and wholesalers in the United States. FMI’s policy states, “Consumers have a right to know the relevant information about the products that they buy, including information about genetically modified foods or foods containing genetically modified ingredients. We support the role and responsibility of FDA to determine appropriate food labeling.”

A soy-checkoff-funded study suggests that if the U.S. rail system were up to the task, soybean transport would shift from trucks to a cheaper and more efficient rail option. According to the study, railroads use about one-third the fuel of trucks but require significant investments to make them cost-efficient.

V ICKSBURG OIL SPILL COST MILLIONS In order to stay competitive with other world sources, farmers eat up the extra shipping costs of Mississippi River closures. • A recent oil spill closed the river for three days, affecting 139 tows, towing more than 2,000 barges. • With the spill impacting 139 tows at an operating cost of approximately $35,000 each, per day, the spill cost an estimated $14.6 million.

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Faces of Farming Revealed By Missy Morgan

The search is over! The online votes have been tallied, and the winners of the U.S. Farmers and Ranchers Alliance’s Faces of Farming & Ranching program have been selected. Meet the farmers who will represent American agriculture: Chris Chinn

About Her Family’s Farm: Chinn and her husband, Kevin, are fifth-generation farmers and raise hogs, cattle, hay and row crops with Kevin’s parents and brother in Clarence, Mo. Fun Fact: Chris writes a blog (www.ChrisChinn.wordpress.com) to show consumers what most American family farms are all about.

Will Gilmer

About His Family’s Farm: Gilmer and his father operate a dairy farm near Sulligent, Ala., where they milk 200 cows. Fun Fact: Will is excited to share with the public the work they do beyond simply milking their cows, including working with a nutritionist and growing their own feed.

Katie Pratt

About Her Family’s Farm: Pratt and her husband Andy, raise soybeans and other crops on their seventh-generation farm in

Dixon, Ill. Fun Fact: Andy’s grandfather began hosting school groups in the 1970s to show kids from Chicago how a dairy farm works. Bo Stone

About His Family’s Farm: Stone, his wife, Missy, and his parents grow 2,300 acres of crops and raise 10,000 hogs annually in Rowland, N.C. Fun Fact: For five years, Stone’s farm has hosted a corn maze for 15,000 elementary school students to show them where their food comes from.

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A CASE FOR SUSTAINABILITY, BROUGHT TO YOU BY WALMART s senior director of business strategy and sustainability for Walmart, Fred Bedore has become a focal point of the sustainability discussion. Bedore has been busy explaining his company’s approach to just about anyone who asks. In a recent interview with Beyond the Bean, Bedore noted that Walmart and farmers have similar goals: to provide safe, sustainable and affordable food for consumers. Q. How are farmers involved in Walmart’s sustainability platform? A. We’re making sure that we’re working to increase farmer education. Farmers become more efficient and more productive, increasing their standard of living. As a result, they become better, more productive parts of our supply chain. That helps them with their long-term growth and helps make sure that we have a sustainable supply long term as well. Q. Why the emphasis on sustainability at Walmart?

A. We’re not doing it to feel better about ourselves. Sustainability helps us operate for less. It’s a different business model, but farmers can take the same approach. Sustainable practices can actually be more efficient, and be less expensive. In both farming and retail, it’s all about maintaining and building public trust. Q. Can you give an example of how improving sustainability can also improve profitability for your company? A. Walmart had a goal to reduce packaging by 5 percent by 2013. We worked with one of our suppliers to remove wire ties and ended up reducing a billion feet of wire that would have gone to landfills each year because we didn’t have it in the packaging anymore. We also had happier customers because they weren’t frustrated by trying to pull all these wire ties off their products after a kid would unwrap a present, for example. It was better customer engagement, it was lower cost and it was better for sustainability.

THINKING OUTSIDE OF THE CONTAINER Two soybean farmers challenge the inclination toward bulk-vessel shipping By Margaret Reeb

ayne and Adam Knewtson, owners of Knewtson Seed and Minnesota soybean farmers, don’t use an elevator. Instead, they pack custom orders of soybeans into containers, seal them and put them on a train bound for the coast. Ships then take the containers to customers in Asia, the Middle East or Africa. The method is called containerized shipping. Containerized shipping is an alternative to bulk-vessel shipping and allows farmers to send their product directly to customers. The containers remain sealed from the moment a farmer closes them until they reach their final destination. Most of Knewtson Seed’s customers are food companies that pay premiums for specific varieties of soybeans. These soybeans create a certain taste for different types of foods.

“A lot of customers purchase a particular variety of soybeans that we produce for them on contract,” Wayne Knewtson says. “I like to compare it to the wine industry. If you’re going to make a cabernet, you use a cabernet grape. But if you’re going to make a chardonnay, you use a chardonnay grape.” In addition to making it easier for companies to purchase smaller, custom orders, containerized shipping provides a way for customers who don’t live close to large ports to receive shipments. “Without containerized shipping, countries without deepwater ports or large enough facilities to unload and store big shipments have to pay a lot for transport,” he says. “The soybeans would have to be shipped to a nearby deepwater port and then loaded onto barges. Containerized shipping makes it easier.”

Knewtson, who has been using containerized shipping to move product since the 1970s, says the costs of different shipping methods change over time. But containerized shipping can help farmers meet their customers’ needs. “Sometimes it’s cheaper to use containerMinnesota soybean farmers Wayne and ized shipping; at Adam Knewtson transport custom soybean other points, bulk orders by taking advantage of would-be empty containers on large ships. shipping costs less,” he says. “It’s the other potential partners or reach advantages like shipping out to local freight forwarders smaller, custom orders that and/or shippers associations. make containerized shipping Visit the U.S. Department work rather than price.” of Agriculture’s “Directory of Freight Forwarders ServFor more information about ing Agricultural Shippers” at containerized shipping, www.ams.usda.gov/tmd/freight. farmers should speak with

Learn Ways to Solve Your Pest and Disease Problems in 5 Minutes or Less with

Focus on Soybean Webcasts Webcasts showcase management topics on critical issues such as: • Managing charcoal rot • Storing soybeans properly • Developing soybean cultivars • Many, many more! STEP 1: Visit www.UnitedSoybean.org STEP 2: Go to “Focus on Soybean Webcast” in upper-right-hand corner STEP 3: Click on “Watch Now”

The United Soybean Board neither recommends nor discourages the implementation of any advice contained herein, and is not liable for the use or misuse of the information provided.

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This 1908 photograph shows Henry Ford at the controls of one of his first tractors at one of the farms he owned at the time. ©Daily Herald Archive/ Science & Society Picture Library.

By Deb Dugan

n addition to making a positive impact on the environment, rubber formulations developed by auto industry researchers are positively impacting farmers’ profit potential – and may ultimately fulfill an interrupted vision Henry Ford had decades ago. Ford first stretched the imaginations of researchers in 1941, when he introduced his “Soybean Car.” Constructed of lightweight, flexible soy-component panels, the car was a hit – and proved it could take one when Ford repeatedly smacked it with a rubber mallet. The outbreak of World War II suspended auto production and effectively ended soy experimentation – until the Ford research team 12

again began investigating the use of soy oil in 2007. “After successfully using soy oils in polyurethanes, we expanded our materials research into potential applications for rubber parts,” says Cynthia Flanigan, a Ford scientist. “With generous project funding provided by the United Soybean Board, we were able to evaluate the processing characteristics and performance of elastomers with different levels of soybean oil.” In 2010, Ford researchers found that using renewable soy as a 25-percent replacement for petroleum more than doubled the stretchability of rubber. The company is using the resulting patented formulation to enhance the performance of various rubber auto parts.

Ford researchers also developed soy-based foams to pass stringent requirements for automotive applications, starting with the seats in the 2008 Mustang. “Every vehicle built by Ford in North America uses soy foam on the seat cushions and backs,” Ford researcher Debbie Mielewski says. “In addition, 75 percent of our headrests also contain soy-based foam.” Soy checkoff funding is also helping Goodyear develop technology to make tires

last longer and cost less to produce. Currently in testing, Goodyear expects tires made with soy oil to hit the road as early as 2015. The auto industry uses more than half the world’s rubber, providing the most immediate market for soy-based rubber. However, soy could soon find its way into other applications, ranging from footwear to conveyor belts. “A lot of companies are looking at environmental solutions,” Flanigan says.

Constructed of lightweight, flexible soy-component panels, the car was a hit – and proved it could take one when Ford repeatedly smacked it with a rubber mallet.

SOY CHECKOFF RECOGNIZED FOR BIODIESEL LEaDERSHIP our billion pounds per year. That’s how much of the edible oil market the U.S. soy industry has lost since the onset of trans-fat labeling in 2006.

“Growing high oleic means meeting customer needs,” says Motter. “As soybean growers, we have to look beyond the elevator at what our end users really need from our products.”

But now the soy industry is uniting behind high oleic soy oil, which contains no trans fats and less saturated fat than commodity soy oil. To leverage high oleic to try to recapture lost market share, the United Soybean Board (USB) has partnered with seed companies to expand existing high oleic varieties into more maturity groups.

USB will encourage farmers to adopt high oleic when it becomes available in their area.

To help food companies decide how high oleic could fit into their future, the checkoff is making high oleic soy oil available to companies and manufacturers so they can test the oil in their operations and product formulations.

USB Director John Motter grows high oleic varieties and hopes other soybean farmers will, too.

“It’s important that we get the message out,” Motter said. “High oleic is good for everyone.”

Soy-checkoff-funded research and promotion efforts have helped grow U.S. biodiesel production to more than 1 billion gallons, helping it earn recognition from the National Biodiesel Board. The checkoff’s efforts have helped increase the value of U.S. soy oil, which remains the primary feedstock for U.S. biodiesel production.

SOYíS NEw USES BUILD DEMaND The soy checkoff works with companies to find valuable new uses for U.S. soybeans. You can find those products, along with hundreds more, in the Soy Products Guide, available here: www.UnitedSoybean.org/ Soy-Products-Guide.

WHAT YOU MAY NOT KNOW ABOUT YOUR NO. 2 CUSTOMER he food industry drives demand for U.S. soy oil, and farmers could increase that demand even more. Fully capitalizing on that potential, though, requires meeting the diverse needs of many different food manufacturers and food service providers. Nearly 70 percent of U.S. soy oil goes to the food industry, making it the second-largest soy customer overall, after animal agriculture. However, the lists of oil end uses and users are long, challenging farmers to keep up with food makers’ needs, many of which involve improving the health and functionality attributes of the oil. According to Richard Galloway, a consultant in the vegetable-oil-refining and grain-handling industries, U.S. soy oil has several

advantages over other oils, including: • The supply chain required to provide U.S. soy oil products is shorter and more manageable than non-domestic oils.

certain desired shelf life.” High oleic soy oil offers even better health and functionality benefits than

traditional soy oil. High oleic oil avoids trans fats, contains less saturated fats and boasts a longer fry life than conventional soy oil.

• Pricing is very straightforward. The Chicago Board of Trade offers futures pricing. And no foreign exchange rate management is necessary for soybean oil. • The food industry strongly prefers oils with no trans fats as well as appropriate technical functionality. “For one thing, functionality means producing a food product that has a taste and mouth feel that the consumer expects and prefers,” explains Galloway. “Second, functionality also means the finished food product must have a 13

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By Paul Spooner

he federal Renewable Fuel Standard will require the use of 1.28 billion gallons of biodiesel in 2013, 28 percent more than in 2012. This requirement bodes well for U.S. soybean farmers, whose soy oil remains the primary feedstock for U.S. biodiesel manufacturing. But it’s also good news for U.S. poultry and livestock farmers, who will benefit from every gallon of biodiesel produced, according to a soy-checkofffunded study. Here are two

ways animal farmers gain from biodiesel production: 1. Lower relative meal prices: As more soy oil is processed for biodiesel production, more soy meal is available for livestock feed. “Demand for biodiesel creates demand for soy oil, which, in turn, lowers the cost of soy meal and the price of rations for our poultry and livestock farmers,” says Lewis Bainbridge, USB secretary and a soybean farmer from Ethan, S.D.

U.S. MEaT EXPORTS BREaK RECORDS IN 2012 One example of how the soy checkoff supports animal agriculture is its recent partnership with the U.S. Meat Export Federation. The partnership increased the consumption of back ribs in Japan from zero to 4.5 million pounds in three years, and this advertisement is just one example of the marketing campaign. Thanks in part to checkoff-funded efforts like this one, U.S. meat exports broke records in 2012.

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The study found biodiesel’s demand for soy oil has lowered feed prices by as much as $48 per ton. 2. Increased animal carcass value: In 2011, biodiesel producers utilized 1.29 billion pounds of animal fats, which contributed to nearly 30 percent of the total production. Growth in biodiesel production has led to increased animal carcass value and higher value per head harvested

for poultry and livestock farmers. According to the U.S. Department of Agriculture, increased demand for animal fats has generated an additional $16.79 on beef value per head. “All soybean farmers should ask for and use biodiesel,” says Bainbridge. “It supports animal farmers, it decreases our dependence on foreign oil and it’s homegrown and renewable – we can make more with every new crop.”

CHECKOFF COMPILES ANIMaL AG ENVIRONMENTaL REGULaTIONS In support of U.S. soy’s No. 1 customer, the soy checkoff commissioned an Animal Agriculture Environmental Audit to help animal farmers learn about environmental regulations and general permitting information at the state level. The audit also provides farmers and operators information about assistance with federal and state environmental improvement programs.

processed soy meal the “gold standard” for poultry diets. Mitchell points to U.S. soy meal’s ability to cost-effectively deliver most critical amino acids. 3. Weather: According to Naeve, a drought’s impact on quality can be dramatic, but it can also be unpredictable. “We don’t fully understand what the effect on quality is going to be,” he says. “Last year, the drought affected different regions differently, so we weren’t exactly sure how quality would play out.” 4. Variety Selection: In a wet year or a dry year, the most effective tool farmers have to improve protein levels is variety selection. “In general, the highest-protein varieties tend to be higher-protein in most environments,” Naeve says. 5. Value-Based Pricing: The United Soybean Board (USB) believes farmers should be rewarded for improving quality, so USB created the Value Task Force to figure out how. “Farmers don’t yet see the financial effects of increasing the protein and oil levels in their soybeans,” says Singlestad. “The goal of the Value Task Force is to create a driver to select high-quality varieties.” Meal constitutes more than two-thirds of every soybean, nearly all of which gets used by animal ag. However, U.S. soy has lost animal-feed market share to alternative feed sources, such as dried distillers grains with solubles (DDGS). “The crude protein in DDGS is lower, and the amino acid balance is not great, but it’s so much cheaper,” says soy checkoff farmer-leader Scott Singlestad, whose Waseca, Minn., farm includes soybean and hog production. Soybean farmers can improve the quality of their soy meal to meet animal farmers’ needs. To help, here are five things to keep in mind. 1. 2012 Quality Results: The most recent checkoff-funded U.S. Soybean Quality Survey found oil levels rose to 18.5 percent, but protein fell a half-point to 34.3 percent. University of Minnesota soybean researcher Seth Naeve, Ph.D., conducts the study and presents the results to purchasers in Asia. Naeve says buyers want to know what U.S. farmers are doing to improve quality long-term. 2. Your No. 1 Customer: Soy meal is an efficient protein source for animal feed, particularly poultry and swine. Perdue Farms Randy Mitchell recently called properly

U.S. AQUaCULTURE GROwS U.S. aquaculture production is bouncing back – and that means more hungry fish that could eat soy meal. National Oceanic Administration Association (NOAA) figures show that aquaculture production rose by 4 percent from 2010-2011, with salmon production in the Northeast and Pacific Northwest surging by 33 percent.

* Based on 13 percent moisture † National average weighted based on estimated production by state as estimated by USDA NASS Crop Production Report (Nov. 9, 2012) Source: Soy Checkoff 2012 Quality of the U.S. Soybean Crop Survey

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CUSTOMER FOCUS CUSTOMER FOCUS

FREEDOM TO OPERATE

SOY OIL

SOY MEAL

NEW MARKETING PROJECT IN CUBA STANDS TO BENEFIT SOY EXPORTS

By Erin Hamm

andy-colored 1960s sedans adorn the streets, and the local theater plays a film starring Elvis Presley. Some say it is like time froze in Cuba. Since Fidel Castro’s communist revolution in the late 1950s, U.S. trade and travel to Cuba have been frozen as well. But some disputes with the small island country off the southern tip of Florida are starting to show signs of warming due to political

pressure from both sides. That could mean more export sales of U.S. soy. The U.S. Soybean Export Council (USSEC) recently approved a marketresearch project aimed at gathering intelligence to pinpoint potential opportunities. “We hope our marketing efforts there over the next year help us regain some lost territory,” says Sharon Covert, USB Customer Focus

chair and USSEC board member. Cuba has consistently ranked among the top 10 export markets for U.S. soy oil. However, that country must pay cash for U.S. imports because credit is not allowed. But in recent years, its consumption of U.S. soy products has decreased. “We are not exactly sure what caused the decrease, but it is our hope to discover new markets in the food industry

STaY FOCUSED ON SOYBEaNS

NO MORE EENY, MEENY, MINEY, MO

Stumped by soybean storage? Preoccupied by pests? Whatever your question, Focus on Soybean webcasts might help. The webcasts break down production subjects ranging from seeding rates to resistance. Start learning at www.UnitedSoybean.org/soybean-webcast.

In past years, when farmers found soybean rust in their fields, they had to guess whether the spores were alive to pose a threat to their crop. Now, scientists are working on new tests that can determine living spores from dead ones, helping farmers avoid unnecessary herbicide sprayings.

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for human consumption as well as opportunities with animal-feed nutritionists,” says Covert. “Our goal is to discover emerging opportunities for U.S. soy oil and meal, and I believe this project will help us do that.” Editor’s note: No checkoff funds are used to administer this project, in accordance with current U.S. trade and marketing policy.

DROUGHT-MaNaGEMENT TIP: GIVE YOUR SOIL a BLaNKET Weather can affect your yield no matter what you do, but University of Missouri researcher Rob Myers says staggering planting dates can help. Practicing no-till leaves a blanket of leaf and stalk residue on top of the soil, keeping it cool and locking in moisture. Tilling removes moisture from soil, which is especially bad during a drought year.

KNOW HOW TO MANAGE EARLY-PLANTING RISKS By Kelly Brandt

hen outside temperatures begin to rise, soybean farmers may be tempted to pull out their planters early. University research shows that early planting can indeed increase yield. Planting too early, though, can bring risk that could negate yield-increasing potential. Take a look at some ways to manage a few of those risks. Risk: Late frost or freeze

Solution: Watch weather forecasts and consider the emergence date rather than the planting date. Emergence can take seven to 10 days after planting in cool soil. Risk: Increased soil compaction and crusting

Solution: Plant only when soil has dried enough to allow for proper operation of planting equipment. Risk: Bean leaf beetles (BLB), and bean pod mottle virus, which is transmitted by BLB

Solution: Scout regularly for BLB and deter them with treated seed or insecticide. Risk: Diseases and fungal pathogens

Solution: Plant varieties treated with fungicide and resistant to disease.

The Time for Herbicides IS NOW By Nicole Kraus

his spring, as you prepare your equipment and secure inputs, don’t forget to plan your battle strategy against weeds. Farmers around the country will fight weeds again this year, as they always have. However, weeds around the country have started fighting back by developing resistance to herbicides. According to management experts, the key to conquering weeds comes down to diversity and education. “Unfortunately, there seems to be no so-called penalty for these weeds to develop resistant traits,” says Jeff Gunsolus, Ph.D., University of Minnesota professor and extension weed specialist. “Once the weed develops resistance to a certain type of herbicide, it can start

populating the soil with seeds, and the resistance grows.”

establish itself without fighting the weeds for nutrients.

The use of post-emergence herbicides alone will no longer adequately control weeds in most situations. Farmers must now develop a strategic weed-management plan that incorporates a number of techniques.

Farmers should monitor fields carefully after planting to look for weed growth. Post-emergence herbicides are much more effective when weeds are small – 2 to 4 inches in size.

Gunsolus and University of Kentucky Weed Specialist Jim Martin, Ph.D., stress that diversification is the key to a successful weed-management plan. First, farmers must become reacquainted with the use of pre-emergence herbicides prior to planting, says Martin. This will hinder weed growth from the beginning and give the crop a better chance to

you can implement methods to control their growth. Otherwise, by the time you find a resistant weed in your field, it might be too late.

In addition to using a variety of herbicides, farmers must also rotate the crops they plant. A typical weedmanagement plan for soybeans will not be the same as one for corn or wheat, for example. That crop will require different herbicides. Ultimately, the next step in the fight against resistant weeds is education. Get to know the weeds before they find you. Learn to identify them and how they grow so

Source: Tom Eubank

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FROM YOUR ROWS TO THE

ROAD As an American-made fuel, biodiesel is the only proven high-performing diesel fuel that can also help us declare our freedom from foreign oil. And now that there are more distributors than ever before, there’s never been a better time to ask for it and use it on your farm.

AVAILABLE WHERE FARMERS GROW

www.biodiesel.org

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