Loose Change: The Story Behind Higher Premiums
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South Dakota Soybean Association, 5000 S. Broadband Ln, Suite 100, Sioux Falls, SD 57108 Non-profit org.
U.s. postage
paid
des moines, IA
Spring 2010 Permit no. 589
The Story Behind Higher Premiums
Loose Change:
A Publication of the SOUTH DAKOTA Soybean Association
WHAT IF YOUR LOCAL ANIMAL
AGRICULTURE INDUSTRY DISAPPEARED?
What else would disappear with it?
Well, to start, the millions of dollars that livestock
and poultry producers generate to help build and
restore your local schools and parks.
Then there’s the locally produced meat that we
trust to be part of the safe and healthy meals we
feed our families.
And of course saying goodbye to your local
poultry and livestock industries would also mean
saying goodbye to the number one customer for
U.S. soybean meal.
Animal agriculture helps our community thrive.
That’s why it’s important that we continue to give
© 2010 United Soybean Board. (38420-mm-SDSRM-3/10)
them our support. Because a safe and secure
food supply and a safe and secure rural commu-
nity both come from the same place – inside the
barns and out in the fields of America’s farmers
and producers.
Soybean farmers helping livestock and
poultry producers just makes sense.
605-330-9942 • www.sdsoybean.org www.animalag.org
Spring 2010 • Volume 6, Number 3
A PUBLIcation of the SOUTH DAKOTA Soybean Association
Features
USSEC Helps Provide Extra Profits to U.S. Farmers Page 8
Farmers are getting premiums as high as 25 cents per bushel for soybeans sold at
elevators transporting grain via containerized shipping – the process of sending grain
internationally via containers that can be easily moved among ships and trains.
West Coast Ports, Railroads Announce Collaboration Page 10
At the recent World Shipping Summit in Qingdao, China, six major U.S. West Coast
ports and two western railroads announced the establishment of the U.S. West Coast
Collaboration. The organization – comprised of the major container ports on the
West Coast (Seattle, Tacoma, Portland, Oakland, Long Beach, and Los Angeles) and
BNSF Railway and Union Pacific Railroad – seeks to promote the West Coast as the
premier region for trans-Pacific trade.
SCN: Know the Numbers Page 15
As farmers prepare for another growing season, it’s not too early to think about
managing soybean cyst nematodes, the leading cause of soybean yield loss in
North America.
Improving Your Bottom Line
$$
A Crop Consultant Can Provide Valuable Assistance Page 17
Production agriculture is rapidly changing and those who do not successfully meet
$
$
the challenges that come with change won’t survive. Rising input costs, escalating
land prices and volatile commodity prices are all reasons to hire agricultural experts
called Certified Crop Advisors to help stabilize yield and profitability.
About the cover
USSEC has been promoting containerized shipping of U.S. soybeans and soy meal
for several years now; and amid a global economic downturn and an upheaval in
global shipping rates, they have managed to secure premiums for farmers as high as
25 cents per bushel across the nation for soybeans sold at elevators transporting grain
via containerized shipping. Read the whole story inside on page 8.
Cover Photo Courtesy of U.S. Soybean Export Council.
3
Spring 2010
OUTLOOK
Ervin Krutzfeldt
President
South Dakota Soybean Association
Chairman
Kevin Scott, Valley Springs
President
Ervin Krutzfeldt, Wolsey
1st Vice President
Christopher Fischbach, Mansfield
2nd Vice President
Greetings Paul Casper, Lake Preston
Secretary
John Horter, Andover
Treasurer
Jerry Schmitz, Vermillion
I
STATE DIRECTORS
n 2010, the American Soybean need to be heard and your membership helps Ron Gorder, Estelline
Association (ASA) celebrates its 90th year turn up the volume. ASA/SDSA has made a Harry Buck, Brandon
Dave Poppens, Lennox
as the only member driven association difference in your profitability and we are Dan Feige, Wentworth
focused on representing the best interests not letting up. ASA/SDSA has fought for George Jaeger, Tyndall
of soybean farmers in Washington D.C. biodiesel tax incentives that have improved ASA/DuPont Young Leader
and around the globe. ASA and the South soybean prices by more than 25 cents per Jon Schaeffer, Viborg
Dakota Soybean Association (SDSA) have bushel. We need to keep pushing to get that
been vigilant promoters and watchdogs for tax incentive reinstated. We worked to en- AMERICAN SOYBEAN
soybean farmers when ag and environmental sure farmer friendly provisions in the 2008 ASSOCIATION DIRECTORS
Dan Feige, Wentworth
policy, government regulations and trade Farm Bill. Since 2005 ASA/SDSA helped Dave Poppens, Lennox
agreements are being developed. bring more than $2 million annually for rust
ASA leadership is made up of soybean research and education. ASA/SDSA is con- Industry Representatives
farmers. When ASA testifies in front of a Con- tinuing to work on trade policy to open new Bayer CropScience – Brad Powell, Sioux Falls
DEKALB and Asgrow – Joe Schefers, Brookings
gressional committee, educates federal and markets for soy and make sure current soy- Mustang Seeds – Terry Schultz, Madison
state policy makers and their staff, or speaks bean markets stay open-including the Chi- Pioneer – Dave Ricks, Sioux Falls
to local or national media, it is soybean farm- nese market which accounted for 55 % of the
ers doing the talking. U.S. soy exports in 2009. The ASA/SDSA and Staff Credits
Betty Hansen....Publisher
Many soybean farmers are of the opin- other farm organizations are working with Ann Clinton Millsap....Editor
ion that they are ASA members because they Congressional offices to expand agricultural Shelby J. Ostrander....Senior Creative Advisor
pay into the soybean checkoff. The soybean trade with Cuba this year. Gary Usovsky....Senior Creative Advisor
John Askew....Publications and New Media Specialist
checkoff is specifically prohibited by law Agriculture is under attack from special David Larson....Sales Director
from influencing policy or lobbying on be- interest groups, animal rights activists and
half of soybean farmers. While every soybean misinformed media and critical ag policy is
farmer pays into the checkoff to fund impor- being formulated in this difficult environ-
The South Dakota Soybean Review is published four
tant research and promotion work. ASA’s lob- ment. Soybean farmers need to stand up for times a year by the Iowa Soybean Association,
bying and regulatory work for soybean farm- themselves and ASA/SDSA in making sure 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023.
ers is funded by soybean farmer membership our voice is heard. Phone (515) 251-8640
E-mail: aclinton@iasoybeans.com
in ASA. South Dakota Soybean is reviving a For advertising information in the
When soybean farmers join ASA they also Soybean Yield contest this year. We are Soybean Review, please contact
Larson Enterprises, phone 515-440-2810.
join their state organization. ASA has more excited about that and you will be hear- E-mail: larson6@mchsi.com
than 22,500 members. In honor of ASA’s 90th ing more about that in the coming days. As
Comments and statewide news articles should be
Anniversary South Dakota has set our mem- we move forward into the spring planting sent to the above address. Advertising space
bership dues at $50 for one year until the end season, may your plans work out like clock- reservations must be made by the first day of the
of September. You can join by contacting our work and I look forward to meeting you at month preceding publication. In consideration of the
acceptance of the advertisement, the agency and the
state office at 1-866-330-0278 or any South some of our soybean activities. advertiser must, in respect of the contents of the
Dakota board member. ASA will be present- Sincerely, advertisement, indemnify and save the publisher
harmless against any expense arising from claims
ing a variety of historical information, pho- or actions against the publisher because of the
tos, and special activities to recognize this publication of the content of the advertisement.
milestone anniversary. SD Soybean Association
If we don’t speak up for ourselves, no one 5000 S. Broadband Ln, Suite 100
else is going to do it for us. There are fewer Sioux Falls, SD 57108
866-330-0278
and fewer soybean farmers each year. We To join SDSA visit www.sdsoybean.org.
4
SOYBEAN REVIEW
Fits most current model combines n n n n
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Everybody Wins When Farmers
Keep Score on Sustainability
Accessible through Checkoff Web Site, Calculator
Can Help Farmers Monitor Their “Fieldprint”
Photo courtesy of The United Soybean Board/Soybean Checkoff.
T
he United Soybean Board (USB)
and soybean checkoff fund tools
that U.S. soybean farmers can use
to help increase their profitability.
The checkoff believes one such
tool will not only boost farmers’
bottom lines, but also positively impact
the increasingly important issue of
sustainability.
Field to Market: The Keystone Al-
liance for Sustainable Agriculture, of
which the USB is a member, developed
the free, online Fieldprint Calculator to print – which that farmer can compare climate change and the potential degra-
tabulate sustainability performance for with others in their region or across the dation of soil and major waterways.
any soybean, corn, wheat or cotton farm. country. All information shared by farm- A report from Field to Market indi-
Now, farmers can access this free tool ers will be kept confidential. cates that, over the last 20 years, soybean
through a link on the USB home page at “I thought it was very helpful and in- farmers, per acre, have reduced irrigated
www.unitedsoybean.org. teresting,” Thede says, who says the cal- water and energy use as well as carbon
USB director Mike Thede says U.S. culator computed his fieldprint in about emissions, all of which contribute to a
soybean farmers face a win-win situation 10 minutes. “It takes into account a lot more sustainably produced supply of
with sustainability. Adopting sustainable of necessary information and gives back U.S. soybeans. Thede says it’s important
farming practices, he says, will not only enough information to enable farmers to to continue that improvement.
be a win for the environment but also a make decisions based on that informa- “We can always get better; there are
benefit for farmers. tion. It’s interesting to think about how ways to help us get better, including
“In most cases, conservation efforts certain decisions can affect your sustain- the Fieldprint Calculator,” Thede says.
and sustainability efforts can help make ability performance.” “There is a misconception that farmers
farmers more profitable either by cutting Thede believes the calculator can play aren’t interested in conservation. Farm-
costs up front or increasing revenues in a small part in the checkoff’s larger ef- ers grow their product in the environ-
the future,” says Thede, who grows soy- forts to help improve the soybean indus- ment, so it’s in our best interest to take
beans, corn and wheat in Palmer, Neb. try’s overall sustainability performance. care of the environment.”
“This tool can be very helpful and ben- To meet present needs and continue to USB is made up of 68 farmer-direc-
eficial to farmers because it allows them supply the world with safe, nutritious tors who oversee the investments of the
to see how even the slightest of changes soybeans, while improving the ability soybean checkoff on behalf of all U.S.
in farming methods will improve the of future generations to meet their own soybean farmers. Checkoff funds are
overall sustainability performance of needs, USB collaborates with ag industry invested in the areas of animal utiliza-
their farm.” leaders and the ag industry’s customer tion, human utilization, industrial utili-
The Fieldprint Calculator analyzes base to develop a platform for sustain- zation, industry relations, market access
the use of natural resources, such as land, able soybean production. and supply. As stipulated in the Soybean
topsoil and water; along with key inputs, According to predictions, food pro- Promotion, Research and Consumer In-
such as energy, plant nutrients and crop- duction will need to double in the next formation Act, USDA’s Agricultural Mar-
protection products. The tool asks farm- 40 years in order to meet global food de- keting Service has oversight responsibili-
ers to answer a series of simple questions mand. In addition, checkoff farmer-lead- ties for USB and the soybean checkoff.
about their operation before it tabulates ers are increasingly aware of the need to
the environmental footprint – or field- preserve biodiversity, the challenges of Source: United Soybean Board
6
SOYBEAN REVIEW
Increasing Global Demand
for Food Relies on U.S. Soybean Farmers
U.S.
soybean farmers hosting international buying teams to in part by the soybean checkoff helped
are playing a larger observe U.S. harvests and meet with lead to a increased use of soybean meal
role than ever in U.S. soy exporters. It is also leading an by over 600 percent during the same
feeding the world, as effort to persuade livestock, freshwater time period.
soy produced here fish, dairy and poultry farmers around Incidentally, India is seen as having
continues to gain popularity in foreign the world to use soybean products as a potential as a major buyer of U.S. soy. Its
countries with expanding populations. feed source. population is expected to grow at a rapid
That’s good news for farmers, Because the U.S. Census Bureau rate. More importantly, its middle class
including those in South Dakota, where expects world population to grow to population—a group that traditionally
this year’s soybean harvest is about 176 over 8 billion by the year 2030, many consumes a large percentage of poultry,
million bushels. The average yield in the foreign countries will need to find new dairy and soyfoods—is expected to
state this year was 42 bushels per acre. and efficient ways to provide food for jump dramatically in the coming years,
Looking at the 2009 harvested their people. Livestock producers in creating a demand for soy in the country.
soybean crop, it’s important to remember population-dense countries such as The middle class outside of the U.S. is
that the marketing of U.S. soybeans China are being convinced that U.S. expected to double by the year 2020,
to foreign buyers helps increase the soy provides a good protein source that according to the U.S. Census Bureau.
crop’s value. Also important is the allows them to raise swine, poultry and Soybean industry insiders suspect
fact that, as a whole, U.S. agriculture fish more efficiently. China is seeing the that such a spike in the number of people
is producing far more product than is value in soy imported from the U.S. to eating poultry and pork could create
being consumed at home, making the be used to build a nutritious diet for a great demand for soybean meal, as
exportation of soybeans, corn, wheat those that consume the meat, milk, eggs those producers look for additional feed
and other commodities vital to farmers’ and other soy-based foods. sources for their livestock. Meanwhile,
success. Just last year, 55 percent of the China, which imported a whopping the soybean checkoff, supported by
soybeans grown in the U.S. were sold to 23 percent of all soybeans grown in the soybean farmers, has combined its
China, Mexico, Japan and a host of other U.S. last year, is driven by a feed industry international soybean marketing efforts
countries. Overall, U.S. agriculture that doubled over the past 15 years. with soy exporters here in the U.S. to
exports hit a record $115.4 billion Soybean farmers in particular benefited unite the soybean industry in an effort
in 2008. from this growth in the China feed to increase the global consumption of
Photo courtesy of The United Soybean Board/Soybean Checkoff.
As for soybean exports, they have industry. Technical training supported U.S. soybean products.
doubled over the past 20 years. In
2008-09, the U.S. exported 1.56 billion
bushels of soy, a 4 percent increase
over the previous year. That trend is
continuing in 2009-10, with China and
other international markets committing
to purchase U.S. Soybeans at a pace that
far exceeds 2008-09 levels.
Still, the effort to export U.S.
soybeans is an ongoing process. The
U.S. Soybean Export Council, funded
by the soybean checkoff, has worked
to attract buyers from foreign markets
by promoting the high quality of U.S.
soybeans. The USSEC, which has nine
foreign offices, builds demand for
U.S. soy in more than 80 countries.
It introduces importers to the U.S.
soybean in a number of ways, including
7
Spring 2010
$ Investing Checkoff Dollars
Photo courtesy of U.S. Soybean Export Council.
USSEC Helps Provide Extra
Profits to U.S. Farmers
F
armers are getting premiums of this option gives U.S. growers a Landers, getting an extra nickel, dime
as high as 25 cents per competitive advantage. Exporting U.S. or quarter for each bushel of soybeans is
bushel for soybeans sold at soy in containers is big business as “good business.”
elevators transporting grain via containerized soy shipments from the “When they started loading
containerized shipping – the U.S. totaled as high as 9% of exports containers at the elevator, I wasn’t sure
process of sending grain internationally valued at over $1 billion per year.” what the advantage would be for me,”
via containers that can be easily moved The benefits are shared with farmers says Landers, an Illinois grain and
among ships and trains. and grain elevators. livestock farmer who typically grows
The benefit to U.S. soybean growers “Basically, we’re able to get more for 400 to 500 acres of soybeans per year.
is due in part to the efforts of the beans that we send out in containers, But even if it is a nickel per bushel,
U.S. Soybean Export Council (USSEC), and in return we’re able to pay our local that’s a nickel per bushel. And that’s
which has worked closely with U.S. farmers more,” says John Seely, grain good business.”
exporters and overseas customers to merchandising specialist for the St. Clair Seely reported that at the end of 2009,
promote containerized shipping. In the Service Company in Belleville, Ill. St. Clair was paying a premium of 25
past four years, a growing number of St. Clair FS began utilizing cents per bushel – the national average
grain elevators around the country have containers in 2008. In 2009, it shipped ranged from 10 to 25 cents per bushel
gotten involved as the value of container 350 containers through the DeLong in 2009. He also says that St. Clair is
export shipments becomes apparent. Company of Clinton, Wis., which expanding its containerized shipping to
“Containerized shipping provides contracts cargo containers from shipping a second elevator in Summerfield, Ill.
the U.S. soybean industry with access to companies and exports soybeans to Asia “We have truck driver who picks up
new markets and potential customers,” and other regions. the empty containers located by DeLong,
says Miguel E. Escobar, acting CEO For Illinois farmers like Wayne drops them off at our elevator, picks
of USSEC. “The value and flexibility Heberer, William Rulevish and Joe them up when they are full and hauls
8
SOYBEAN REVIEW
them over to the St. Louis railyard,” loaded with U.S. soybeans and returned means more demand – which means a
Seely says. “From there they are exported to China, Taiwan and a number of other higher price for the soybeans they grow.
by DeLong.” places around the globe. U.S. grain elevators big and small
There are a number of advantages for are hoping containerized shipping
USSEC promotes containerized the transportation companies. continues to grow.
shipping to importers According to major grain Meanwhile, grain elevators and
USSEC successfully promoted transportation companies such as farmers are closely watching how
containerized shipping of U.S. soybeans DeLong, the difference between bulk transportation and international
and soy meal for several years and it ocean freight rates and container markets affect their bottom line – which
continues to be successful even in the freight rates has motivated the demand is highly dependent on the prices they
global economic downturn and upheaval for containerized soybeans. Increased receive at selling time.
in global shipping rates. USSEC held international demand in the late 2000s “Selling more beans and grain to
industry conferences in China, Taiwan pushed freight rates to an all-time high foreign countries ultimately means
and Southeast Asia in addition to highly of more than $100 per metric ton, while more business for elevators like us
popular programs in Chicago and New container rates were closer to $65 to $75 here in the United States,” says Seely,
Orleans. The benefits of “flexibility” per metric ton. Though the bulk rates pointing out that the St. Clair FS is
was demonstrated during a recent have lessened recently, container rates the only elevator using containerized
conference when a team of Chinese feed are still cheaper. shipping in his region of Illinois. “If
millers indicated to USSEC that they Just as important, a study by the we keep selling more beans, we’re
had experienced difficulties purchasing Soybean Checkoff revealed that ocean going to need more efficient ways to
less than vessel size volumes of high- carriers spend close to $100 billion per transport it.”
quality U.S. soybeans. Learning about year operating their container assets. Of Rulevish, who farms about 600 acres
the flexibility of containerized shipping, that number, approximately $16 billion in Illinois, admitted that as a farmer
the China team began purchasing the is attributed to the cost of repositioning and creator of a soybean crop, what
desired U.S. soybeans in containers. empty equipment to the point of its happens after he delivers his beans to
And following a recent transportation next cargo. the elevator isn’t at the forefront of his
conference, Chinese attendees from mind.
Dalian, Shanghai, and Zhengzhou USSEC Focuses on Increasing “But again, if I’m going to get a
purchased more than 3 million bushels Markets nickel more because my beans are
of U.S. soybeans. The advantage for U.S. soybean growers going in a container, then suddenly I’m
Containerized shipping is not just for is obvious: more international markets willing to pay attention.”
customers in Asia as USSEC’s successful
promotion of containerized shipping
Photo courtesy of U.S. Soybean Export Council.
in Romania proved in 2009. In April,
Suinprod, the leading swine producer
in Romania, placed a $500,000 order
for its first containerized shipment
of U.S. soybeans. USSEC assisted in
the transaction, which took months
of negotiations.
Making Use of Empty Boxes
More than 8 million cargo containers
loaded with consumer goods enter the
U.S. from foreign countries each year.
Many of the 20- or 40-foot steel boxes
are sent back overseas completely empty.
Exporters, U.S. grain companies
and international marketing groups
like USSEC realized the containers sent
back by the U.S. may have been void of
contents but full of potential.
After a great deal of effort and
promotion, many of the steel boxes are
9
Spring 2010
$ Investing Checkoff Dollars
West Coast Ports, Railroads
Announce Collaboration
by Mike Steenhoek
Executive Director Coast ports and Western railroads are produced in the United States are
Soy Transportation Coalition no exception. Our mission is to further ultimately exported – increasingly to
strengthen the U.S. West Coast ports’ China and other Asian countries. South
A
position as the preferred gateway for Dakota soybean farmers, in particular,
t the recent World Shipping Asia cargo to and from the Midwest and are heavily reliant on the logistics system
Summit in Qingdao, China, six cities further east.” that transports soybeans from the state
major U.S. West Coast ports and According to the coalition, the six to the ports on the West Coast. A costly,
two western railroads announced major U.S. West Coast ports have more unreliable, and congested transportation
the establishment of the U.S. West than 100 ships sailing to and from the system will have a negative impact on
Coast Collaboration. The organization – West Coast each week providing access our industry. It is therefore encouraging
comprised of the major container ports to 80 ports in 36 key consumer markets to learn of the efforts by the West Coast
on the West Coast (Seattle, Tacoma, around the world. ports and the western railroads to work
Portland, Oakland, Long Beach, and Los Recent analysis conducted by the Soy together to achieve greater efficiency.”
Angeles) and BNSF Railway and Union Transportation Coalition highlighted John Lanigan, BNSF executive vice
Pacific Railroad – seeks to promote the the importance of West Coast ports – president and chief marketing officer
West Coast as the premier region for particularly in the Pacific Northwest – echoes this sentiment, “BNSF and the
trans-Pacific trade. as a launching point for soybeans onto other members of the U.S. West Coast
In describing the reasoning behind the export market. According to the Collaboration are committed to helping
establishing the collaboration, Omar analysis, approximately 48 percent of shippers get more from their supply
Benjamin, executive director of the Port soybeans, once they are loaded into a rail chains. At BNSF alone, we have invested
of Oakland, says, “today’s economic car, are destined to the ports of Seattle, $30 billion to create a rail network that
conditions have compelled all of us to Tacoma, Portland or other ports in the delivers more goods, to more markets
take a closer look at how we conduct region (see Table 1). faster and with less environmental
our business to discover new approaches Stan Hanson, a soybean producer impact than all-water alternatives.”
that yield improved results. from Garretson and board member of In describing the advantages of the
“This is happening throughout the Soy Transportation Coalition, says, West Coast ports, the collaboration
the entire supply chain and U.S. West “approximately half of the soybeans emphasized the closer proximity to
China compared to the U.S. East Coast.
Because transit times are faster from the
West Coast, fewer vessels are required.
According to the coalition, the typical
U.S. East Coast services from North
10
SOYBEAN REVIEWPhoto courtesy of The United Soybean Board/Soybean Checkoff.
China into Norfolk or New York/New
Jersey will require between nine and
eleven vessels in a single loop compared
to five to seven vessels required for most
deployments into U.S. West Coast ports.
The coalition further highlighted the
200-250 weekly trains from the West
Coast ports to all of the major hubs in
the United States. Overall transit times Table 1
from China to the West Coast are 10-14
days with an additional four to six days Leading Destinations for Soybeans and Soy Products
via rail to the Midwest or East Coast. After Loaded into a Rail Car, Where Does it Go?
According to the organization, the Soybeans
concept behind the collaboration began
in early 2009 when the top leadership of Destination (BEA*)- Top 5 Short Tons %
these ports met to discuss ways to take 1.) Seattle-Tacoma-Bremerton, WA 6,391,762 28.56%
advantage of their combined resources,
experience and proximity to Asia. The 2.) Portland-Salem, OR-WA 4,285,417 19.15%
group recognized that the participation
of the two largest U.S. railroads, Union 3.) New Orleans, LA-MS 1,799,187 8.04%
Pacific and BNSF, was essential given
the interdependency between port 4.) Champaign-Urbana, IL 1,026,124 4.58%
and rail to connect American markets
with global markets. Members of the 5.) Huntsville, AL-TN 955,451 4.27%
collaboration traveled to Washington,
D.C., last summer to convey the message TOTAL 22,383,988 100.00%
to the federal level – a national goods
movement plan is essential for sustaining
America’s role in global trade; and that Soybean Meal
more federal resources are necessary Destination (BEA*)- Top 5 Short Tons %
to maximize the advantages of moving
1.) San Antonio, TX 1,216,641 5.75%
goods from Asia through the U.S.
West Coast. 2.) Jackson, MS-AL-LA 1,139,180 5.39%
The organization has established 3.) Seattle-Tacoma-Bremerton, WA 1,094,503 5.18%
the following objectives: Identify
4.) Chicago-Gary-Kenosha, IL-IN-WI 1,056,448 5.00%
and communicate the strengths and
advantages of shipping through the 5.) Ontario 966,292 4.57%
U.S. West Coast with ocean carriers TOTAL 21,149,223 100.00%
and cargo owners; Clarify and correct
misinformation and/or misperceptions
Soybean Oil
about the U.S. West Coast ports and the
Western railroads; Create one strong Destination (BEA*)- Top 5 Short Tons %
voice in Washington, D.C., advocating 1.) Chicago-Gary-Kenosha, IL-IN-WI 917,684 12.10
for investment in U.S. West Coast 2.) Kansas City, MO-KS 607,340 8.01%
gateway intermodal infrastructure and
promoting a strong National Goods 3.) Los Angeles-Riverside-Orange County, 400,716 5.29%
Movement Strategy. CA-AZ
Although there is currently a 4.) New Orleans, LA-MS 348,400 4.60%
downturn in maritime trade, the 5.) Grand Island, NE 276,728 3.65%
organization believes future growth
TOTAL 7,582,132 100.00%
looks promising as officials talked about
the growth in population in the U.S. Source: Soy Transportation Coalition (www.soytransportation.org)
and the anticipated American consumer
demand for imports over the next *The U.S. Bureau of Economic Analysis (BEA) divides the nation into BEA regions
two decades. when analyzing and compiling economic data.
11
Spring 2010$ Investing Checkoff Dollars
South African Youth Cooperative Offers
Soyfoods to Day Care Students and More
A
youth cooperative created to The agreement requires the cooperative to support the program. Their answer
produce and sell soy milk in to donate more than 10,000 liters of was the World Soy Foundation
the Orange Farm Township in soy milk to the community a year. In Acre Challenge.
Johannesburg, South Africa is addition, they are already able to ensure By last spring, more than 120 U.S.
making soyfoods available to the program’s sustainability by selling soybean farmers from 18 States and
approximately 500 children thanks to soymilk, okara chips and soy nuts. Their Brazil had committed the value of an
Monsanto Fund support. The World Soy marketing plan includes more outside acre of their crop to the Acre Challenge.
Foundation provided a SoyCow food sales in high traffic areas and eventually The World Soy Foundation Acre
processing system, product installation door-to-door sales. Challenges supports programs to
and training to two Private Voluntary With a successful startup model now nourish children with high-protein
Organizations: Joint Aid Management completed, the World Soy Foundation is soy. “I urge my fellow soybean growers
(JAM) and INMED Partnerships for seeking new funding to “grow the herd” to join me in contributing to the Acre
Children. JAM worked with the local in South Africa. Challenge,” says World Soy Foundation
township government to identify 10 board member David Iverson, a grower
dynamic young adults and a location to South Dakota Soybean Farmers from Astoria. “Our crop is uniquely well
set up the SoyCow micro-enterprise. Encouraged to Respond to suited to help people, and the World Soy
The machine was installed, the people Global Hunger Foundation’s Acre Challenge makes it
were trained and the products launched Through World Soy Foundation Acre Challenge easy for us to bring better nutrition to
in early January. Part of the agreement U.S. soybean farmers have provided those who need it most.”
in the creation of this small enterprise, thousands of dollars and leadership in More than 963 million people—
named “To Taste” in the Zulu language, the creation and ongoing support of about 1 out of every 7 of the world’s
was that the cooperative would give soy the World Soy Foundation. Yet, many population--are undernourished today.
milk to 10 daycare centers in the area. farmers wanted a personal opportunity Through the World Soy Foundation, one
acre of soybeans provides approximately
18,000 rations of soy protein. One acre
of soybeans, approximately 42 bushels,
can also be used to make more than
2,500 gallons of soymilk or more than
40,000 eight ounce servings.
To join the fight against hunger
and malnutrition with soy and
the Acre Challenge, visit www.
worldsoyfoundation.org.
South Dakota soybean growers
and their peers across the nation were
instrumental in creation of the World
Soy Foundation, a 501c3 charitable
organization. The World Soy Foundation
works with private voluntary and non-
governmental organizations to deliver
soy protein and nutrition education to
people who need it around the world.
Projects sponsored by the World Soy
Foundation include complementary
foods for children 6-36 months,
school feeding programs and nutrition
assessment and research services.
12
SOYBEAN REVIEWU.S. Farmers Profit from Record U.S.
Soy Exports of 1.56 Billion Bushels
U.S.
soy exports set a
record for the third
year in a row with
exports of 1.56 billion
bushels. Whole
soybean exports totaled 1.24 billion
bushels and soy meal exports equaled
318 million bushels. The USDA
estimates exports equaled 55 percent of
the soybean crop harvested in fall 2008.
The most important export market for
U.S. farmers continued to be China, as
the country imported nearly one-fourth
of the soybeans grown in the last year
with total imports of over 23 percent of
the total crop.
AGP processes over 16,000 acres of
Midwestern soybeans every day
www.agp.com
13
Spring 2010South Dakota Soybean Farmer Honored at
Poultry Conference
Recognized for his 10 poultry and egg exports. The poultry and
years of outstanding service egg industry, in fact, is the largest user
as a commodity member of U.S. soybean meal, accounting for 51
on the USAPEEC Board of percent of all the meal produced.
Directors, Christensen was As Christensen often says, “chickens
a driving force in improving are flying soybeans.” With the U.S.
USAPEEC’s programs. poultry and egg industries using 710
“Because of the support million bushel-equivalents and exporting
USAPEEC received from more than 120 million bushels each year
Lauren and the SDSRPC, with a value of $3.539 billion, a loss of
L
our worldwide activities this market would be devastating to the
auren Christensen of the South have been more effectively monitored, U.S. soybean farmer.
Dakota Soybean Research & evaluated and adjusted to ever-changing “Lauren’s unwavering support,
Promotion Council (SDSRPC) market conditions,” says Greg Tyler, influence, and vision have helped make
and United Soybean Board (USB) vice president of Marketing. USAPEEC’s marketing activities second
received the coveted Crystal For the last decade, USAPEEC has to none, and we are so appreciative of
Chicken Award at the Winter Meeting of developed a strong relationship with his time and efforts,” says Jim Sumner,
the USA Poultry & Egg Export Council SDSRPC, USB and the U.S. soybean president. “Our staff and members hold
(USAPEEC) in Washington, D.C., and corn industries, which support the Lauren in the highest esteem and wish
in December. organization’s efforts to increase U.S. him the very best in his retirement.”
South Dakota Soybean Producers
Boost Pork Exports to Japan, Mexico
improve the economic actually approach $4 million, because
outlook for one of USMEF is able to use these funds
their most valuable to leverage support from the USDA
customers, the U.S. pork Market Access Program and other
industry. non-checkoff sources.
Photo courtesy of USMEF.
With pork supplies During the 2009-2010 fiscal year,
mounting in cold storage the South Dakota Soybean Research
and hog prices stuck and Promotion Council (SDSRPC)
below break-even levels, also invested a total of $150,000 in
soybean organizations, USMEF pork marketing efforts, with
stepped up to the $75,000 targeted specifically toward
plate last fall with an recent promotions in Japan and
S
additional $1.35 million Mexico.
outh Dakota soybean producers in checkoff funding to support USMEF’s In Mexico, the soybean industry
recently helped underwrite an pork marketing campaigns in Japan, initiative helped fund holiday pork
aggressive U.S. Meat Export Mexico and South Korea. The purchasing promotions at four key retail chains.
Federation (USMEF) marketing power of the soybean industry’s $1.35 The campaign netted an additional
initiative in an effort to help million “pork stimulus package” will 330,000 pounds of U.S. pork sales.
14
SOYBEAN REVIEW$ Investing Checkoff Dollars
SCN: Know the Numbers
by LeAnn Strother
and seem to indicate that, by doing so, tion, iron deficiency chlorosis and other
they believe they are doing what they nutrient deficiencies, drought distress,
A
can to address the problem. In fact, there herbicide injury or other plant diseases.
s farmers prepare for another is an advantage to be gained in know- Thus, SCN injury often remains un-
growing season, it’s not too ing the level of SCN (the egg population detected for several years because the
early to think about managing density) present in a field and strategi- symptoms are attributed to other causes.
soybean cyst nematodes (SCN), cally managing it. Soil testing is important to iden-
the leading cause of soybean yield In fact, Iowa State University Nema- tify fields where SCN may be impacting
loss in North America. tologist Greg Tylka says 73 percent of yield and to monitor fields where SCN is
One thing that can be done in the the Iowa fields sampled in 2007-2008 a known problem.
spring is pulling soil samples to test for had SCN. Niblack reports that a 2005 “Farmers who ordered SCN-resistant
SCN. Farmers who have never checked survey showed 83 percent of the soy- soybean varieties made a good choice,”
for SCN or who haven’t checked for a bean fields in Illinois are infected with Tylka says. “SCN-resistant soybean vari-
number of years may still have time to SCN, with average population densities eties pay dividends twice, first by produc-
take appropriate measures to address the high enough to cause significant yield ing good soybean yields on SCN-infested
problem if test results suggest it would suppression. fields and secondly by preventing in-
be beneficial. Tylka emphasizes that SCN may not creases in SCN populations.” (The 2009
“More than 60 percent of Illinois show visible symptoms while impact- results of the Iowa State University SCN-
farmers say SCN is the biggest problem ing yield. Visible symptoms of SCN resistant Soybean Variety Trial are avail-
in soybean production, but there is a damage are rarely seen in high-yielding able online at www.isuscntrials.info.)
huge disconnect between awareness of fields (those producing greater than 40 Where SCN is present, research
SCN as a problem and a willingness to bushels per acre) or during years when funded by soybean checkoff funds from
sample for it,” says University of Illinois soil moisture is plentiful. Yet, SCN can the North Central Soybean Research Pro-
Nematologist Terry Niblack. “Less than cause 15 to 30 percent reduced yield (in gram (NCSRP) shows resistant varieties
15 percent say they sample on a ‘regular susceptible varieties) without showing can produce a 40 to 50 percent yield in-
basis,’ or every six years, as recommend- any other visible symptoms. crease over susceptible varieties. Even
ed for fields in a corn/soybean rotation.” When aboveground symptoms do in areas where SCN is not present, most
About 75 percent of Illinois farmers appear, they are often mistaken for SCN-resistant varieties are competitive
say they plant SCN-resistant varieties symptoms of damage from soil compac- in yield to non-SCN-resistant varieties.
While resistant varieties are ben-
eficial, monitoring the SCN population
densities (numbers) is still needed to
determine whether the resistant varieties
are effective against the SCN in a given
field. SCN populations can become re-
sistant to varieties or resistance sources.
The only way to get a reliable diagnosis
of SCN is through soil sample analysis.
Though SCN can never be com-
pletely eliminated from an infested field,
when it has been identified, soybean
production can remain profitable with
proper SCN management. The goals of
SCN management are to improve soy-
bean health and yield, keep SCN num-
bers low and preserve the yield potential
of resistant varieties.
“It’s better to keep low numbers low
than wait until it becomes a matter of
driving high numbers down,” Tylka
Photo Courtesy of the United Soybean Board/Soybean checkoff.
15
Spring 2010“By 2005, more than 90 percent of
the SCN resistant cultivars available in
Illinois (and surrounding states), were
derived from a single source, PI88788.
Photos Courtesy of Iowa State University.
We have found that more than 80 per-
cent of the SCN populations in Illinois
were adapted to PI88788 or varieties
derived from it,” Niblack says. “This
demonstrated that adaptation to this
source of resistance has occurred. This
is most likely due to the widespread
planting of SCN-resistant cultivars de-
rived from PI88788. Rotation with al-
Photo Courtesy of Greg Tylka. ternative sources of SCN resistance is
recommended as a means to slow the
says. This means continuing to monitor adaptation.
nematode numbers to make sure they “Our studies showed that most popu-
are being kept in check. lations of SCN in Illinois have not adapt-
Effective SCN management requires ed to PI548402 (also known as Peking)
an integrated approach. Niblack says the or PI437654 (also sometimes known as Iowa Soybean Association Director of Pro-
most effective and typical means of man- Hartwig and the branded CystX® re- duction Research David Wright offers tips
aging soybeans in SCN-infested fields sistance), so we encourage using these for collecting samples. It is important, he
involves using resistant varieties rotated sources of resistance, especially when says, that the core be from the upper eight
with nonhost crops. The nonhost rota- SCN population densities are high,” Ni- inches of soil. The more samples taken in
tion, which in some midwest states is black continues. smaller areas, the more accurate the re-
usually corn, is effective in decreasing Another practice some growers con- sults. Generally, 15 to 20 soil cores should
SCN population densities. The use of sider is the use of nematicides. New seed be taken from an area of no more than 20
resistant varieties is more complicated treatments are being developed to help acres and be combined into one sample.
because complete resistance to SCN has with SCN management. In fields that have never been checked
not been found and SCN-resistant soy- While the use of existing nematicides for SCN, samples should be taken from ar-
bean varieties vary in the level of nema- increases cost of production and general- eas where SCN is likely to establish first.
tode control they provide; moreover, ly does not give season-long control, the With all the snow that’s been on the ground
nematodes readily adapt to resistance. effect may last long enough to provide this winter, flooding and standing water
If SCN numbers are rising even while an economic yield benefit. “By the end are likely this spring. In fields where water
a resistant variety is being used, it is time of the growing season, SCN numbers has stood or has run across, even if they
to first switch to a nonhost crop and may be as high as or higher than they didn’t have SCN before, it may have been
then use different, more resistant soy- were at planting,” Tylka says. “Unpre- brought in with flooding or snow melt. Oth-
bean varieties. dictable yield responses and inconsistent er areas where SCN is more likely to first
Growers who are committed to decreases in SCN population densities be discovered include: near a field entrance,
planting soybeans but learn that the are the main reasons nematicides are not along fence lines, areas where weed control
SCN in their fields may have adapted to more commonly used at the moment. isn’t as good, areas of high soil pH (greater
the resistance they are using might want Farmers should check with their local than 7) or areas where yield seemed to be
to look into switching their seed order sources of information for recommenda- low the last time soybeans were grown.
to a variety with a different source of tions regarding the use of nematicides, Spring samples should be collected
resistance. including new seed treatments that may before soybeans are planted. If soybeans
Because many resistant varieties have become available in the near future.” were last grown in the field, samples should
the same resistant parent, or “source of As the season progresses, anything be taken from under the old crop rows.
resistance,” the rotation of resistant vari- that can be done to relieve stress on soy- To have a reference for the future, it is
eties alone may not be sufficient to avoid beans will help to avoid compounding helpful to record specific details about the
the adaptation problem. That is part of the impact of SCN. Use of no-till and late sampling. These details include the areas
the reason nonhosts must be included planting may be beneficial. In addition, sampled, number of cores, sampling time,
in the rotation to decrease the numbers good management of weeds, insects (like whether it was before or after a soybean
of SCN and slow down the adaptation to soybean aphid) and soil fertility will crop and the lab that processed the samples.
resistant varieties. also help.
16
SOYBEAN REVIEW$ Investing Checkoff Dollars
Improving Your Bottom Line
A Crop Consultant Can Provide Valuable Assistance
by LeAnn Strother Iowa Soybean Association director of nutrient availability; crop scouting to
production research. “You can make the monitor crop growth and development,
P
commitment to refine those manage- monitoring disease, insect, and weed
roduction agriculture is rapidly ment concepts and skills yourself, or a populations; manure management;
changing and those who do not qualified crop consultant can give you hybrid and variety selection; equip-
successfully meet the challenges the advantage of another set of eyes, ex- ment recommendations and custom
that come with change won’t perience and knowledge.” hire advice. Generally, the service runs
survive. Rising input costs, Larry Buck, president of the Iowa year round.
escalating land prices and volatile Independent Crop Consultants Asso- Bob Metz, a soybean producer from
commodity prices are all reasons to ciation, explains that independent crop West Browns Valley, SD and a board
hire agricultural experts called Certified advisers provide a professional service member of the South Dakota Soybean
Crop Advisors (CCA) to help stabilize on a fee basis. “Because we do not sell Research & Promotion Council, has
yield and profitability. Most CCAs work products or participate in the actual pur- used a crop consultant since the early
for cooperatives and other agricultural chase of products, we draw from a base 1980s. He works with Bob Marum, of
supply businesses but a few, called of all available products and manage- Soil Consultants Inc., based in Twin
independent crop consultants, contract ment techniques to provide sound, un- Brooks, SD.
directly with farmers. biased recommendations, based on each “We’re a long-term team,” Metz says.
Farmers who use independent crop farmer’s individual needs,” he says. “We make few farming operation deci-
consultants feel the return on their in- Karen Corrigan of McGillicuddy sions and long term business plans with-
vestment is well worth it. An Iowa State Corrigan Agronomics, Bloomington, Il- out first visiting with Bob.”
University survey reported that most linois, says growers’ interest in hiring Marum says, “When you work with
farmers say they receive a $2 to $5 re- independent crop consultants has grown someone for 25 years, a level of under-
turn for every dollar they invest in a in recent years as input prices increased standing and trust builds that allows
crop consultant. dramatically. “Higher costs led farmers depth to consultation and decision mak-
“The information and technol- to seek information from an unbiased ing.”
ogy available today make it possible to third party,” Corrigan says. It is not necessarily about maximum
achieve higher yields – or more impor- The service provided by a crop con- yield or even short term maximum eco-
tant, higher profits – with higher levels sultant may include fertility recom- nomic return but the long-term benefits
of management,” says David Wright, mendations; soil sampling to determine to farm and family.”
$
$
$
$Spring 2010
17Among other benefits, Metz credits Rather than follow a set schedule for 1987 and with remote sensing in 1989.
Marum with helping him identify fungus visiting fields, McNeill says, “My goal is “At very little it takes the guess-
issues in one of his fields. to teach my growers everything I know, work out,” Metz says. “I have a quick
“We realized it would probably pay how to scout, how to understand soil response team. If there’s hail, he’s right
to use a fungicide in that particular area,” tests, tillage concepts and so on. My there to help make decisions. It’s worth
Metz says. “We picked up on the issue newest clients get more attention to it to have another set of eyes looking
with a yield monitor and mapping, com- help them make better decisions.” at my crops.”
bined with good scouting.” Since they’ve worked together, Mc- Legvold agrees and says, “The data
What it comes down to, according to Neill has helped Legvold make the Dr. McNeill collects, when put together
Metz, is that the benefit of hiring a consul- transition from full tillage to no till and with the data I collect, paints a better
tant is having help in narrowing down the from dry fertilizer to new forms, includ- portrait of what I’m doing on my farm
issues to address first to improve yields. ing chicken litter and starter fertilizer and allows me to improve my manage-
Jim Legvold from Vincent, Iowa, has applied during planting. ment practices.
worked with Dr. Michael McNeill of Ag “One thing I like,” Legvold says, “is “Working with my crop consultant,
Advisory, Ltd., in Algona, since 1993, that my consultant is one of the first to everything I do is by prescription,”
when renting more ground provided a have knowledge about new technology Legvold says. “Every field is different.
reason to seek advice. and products we may not yet be able As a grower, you need to have confi-
Like Metz, McNeill has little turnover to get, and see how they perform and dence that the person advising you is
in clientele. “It’s personalized service,” he whether they’re worth it.” McNeill, for working with you to minimize your
says. “The longer you know an individ- example, began research with GPS in cost and maximize your profit.”
ual, and their production operation, the
more you can help him.”
In working with a new client, McNeill
first tries to understand their farming
operation and the condition of the soils
they’re farming. “Then we develop a plan.
From where we are, we decide where we
want to go and how to get there. It’s per-
sonalized to every grower’s needs. Our
How to Hire a Crop Consultant
goal is to optimize their profitability. When you’re looking for a crop consultant, Karen Corrigan of McGillicuddy
“After we’ve looked at their operation, Corrigan Agronomics, Bloomington, Illinois, says you should find out their level
we make the biggest changes in the area of knowledge, know that you can put trust in their recommendations and, most
that is the weakest,” McNeill says. “For importantly, confirm that they are truly independent.
some it’s tillage; for others, it’s nutrient Here are some tips, adapted from Ag Professional and Iowa State University
management. After we’ve resolved that, Extension’s “Ag Decision Maker”:
we go to the next weakest link, whether n Find Out Their Level of Knowledge
it’s weed control, disease control, tillage • What is their training? What are their credentials? Are they certified?
or equipment.” • How much experience do they have? Does their area of expertise match
One of the things McNeill does for what you want them to do for you?
Legvold is take soil nitrate tests in late • Do they belong to and participate in professional organizations?
spring. When results are back, he makes
nitrogen recommendations for greatest n Know You Can Put Trust in Their Recommendations
efficiency. In late fall, they test corn stalk • What is their reputation? Ask for references.
tissues to see how the crop responded • Can you get a recommendation from someone whose operation is similar to yours?
and what’s left as nitrogen residue. From • Does the consultant show up regularly and on time?
the stalk test, they can evaluate their
program. If they’ve overapplied, they n Confirm That They are Truly Independent
were not cost efficient. If nitrogen is low, • Where do they get their ongoing training?
they probably underapplied and didn’t • What research do they use to support their recommendations?
maximize yield. • Does the company receive compensation for recommending a product?
“While we’ve worked on improv- You can learn more about hiring an independent crop consultant by checking
ing yield, we really want to get maxi- out: www.agprofessional.com/croptalk.php?id=16760 or www.extension.iastate.
mum yield for minimum cost, for edu/agdm/wholefarm/html/c5-60.html
as much profit as possible per acre,”
Legvold says. Photos Courtesy of the United Soybean Board/Soybean checkoff.
18
SOYBEAN REVIEWI n vesti n g C heck o ff D o llars
Tips for Higher Soybean Yields
P
roducing high yielding soybeans takes
Photo Courtesy of the United Soybean Board/Soybean checkoff.
teamwork. The right genetics, a blessing from
Mother Nature and the right management
decisions by you make a profitable and
unbeatable team. Although it’s difficult to
predict what curves Mother Nature will throw at you,
there are things you can do now to put the odds of
bin-busting yields in your favor.
Growing soybeans requires more management
today than 30 years ago due to earlier planting and
increased disease and insect pressure. Early-season
disease infections reduce stands and necessitate re- Planting practices, including row width, planting
planting and if severe enough can reduce yield. Dis- date and seeding rate may have a significant effect on
ease incidence and severity are highest in fields with yield. Recent multistate research suggests a final stand
slow drainage or where periodic saturated soil condi- of 125,000 plants per acre may be the most economi-
tions occur. cal. While the optimum planting date is state specific
Fungicide seed treatments have been shown to re- the benefit from planting in narrow rows is not. Sev-
duce stand loss caused by seedling diseases but reports eral research programs have shown that soybeans
of increased yield have been inconsistent. The effec- grown in 15 inch rows can produce higher yields than
tiveness of fungicide seed treatments is influenced by those grown in 30 inch.
variety, planting date, soil moisture content, and tim- Although soybean yields have increased more than
ing of rainfall. Nevertheless, fungicide seed treatments 32 percent in the last 30 years those yield gains can
are a cost effective management tool to avoid stand quickly be lost to uncontrolled insects such as soy-
loss and potential yield loss from a replanted crop. bean aphid, spider mite, and bean leaf beetle. Scout
The prophylactic use of soil inoculants is increas- individual fields diligently, know and understand eco-
ing. Rising input costs, escalating land prices, and nomic thresholds and treat with an insecticide only
volatile commodity prices are all driving the need for when necessary.
soybean producers to improve profitability. However, Control weeds. Weeds left uncontrolled for the
the use of inoculants to increase yield may not be the first ten days after soybean emergence reduces yield.
solution farmers are looking for, especially if soybeans The use of a pre-emergent herbicide in addition to
have been grown in the recent past. In fact, the pro- a glyphosate application controls the early flush of
phylactic use of inoculants without an active on-farm weeds and is a good management practice to delay the
testing program could be costing you money. A recent buildup of glyphosate resistant weed populations.
report by several Midwest soybean specialists suggests Growing soybeans as a rotational crop is easy.
that prophylactic use of inoculants is not a good man- Growing soybeans profitably is more challenging.
agement practice for profitable soybean production. “Best Management Practices” are available to help you
However, if a field has not produced soybeans in the meet that challenge and more; the latest science based
past four or five years or has never produced soybeans, recommendations can be found at www.planthealth.
an inoculant is needed for nitrogen fixation to occur. info. That’s your soybean checkoff. Delivering results.
19
Spring 2010You can also read
