IOWA
SOYBEAN November November 2020 2020
GLOBAL TRADE: QUALITY MATTERS
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President Jeff Jorgenson, Sidney | D7 President Elect Robb Ewoldt, Davenport | D6 Treasurer Dave Walton, Wilton | D6
November 2020 | Vol. 33, No. 2
Secretary Randy Miller, Lacona | D8 Executive Committee Jeff Frank, Auburn | D4 Board of Directors Brent Swart, Spencer | D1 Chuck White, Spencer | D1 April Hemmes, Hampton | D2 Casey Schlichting, Clear Lake | D2 Rick Juchems, Plainfield | D3 Suzanne Shirbroun, Farmersburg | D3 Marty Danzer, Carroll | D4 Tom Vincent, Perry | D5 Morey Hill, Madrid | D5 Bill Shipley, Nodaway | D7 Warren Bachman, Osceola | D8 Pat Swanson, Ottumwa | D9 Tom Adam, Harper | D9 Brent Renner, Klemme | At Large Steph Essick, Dickens | At Large Lindsay Greiner, Keota | At Large Tim Bardole, Rippey | At Large American Soybean Association Board of Directors Morey Hill, Madrid Wayne Fredericks, Osage Brian Kemp, Sibley John Heisdorffer, Keota Steph Essick, Dickens Dave Walton, Wilton United Soybean Board of Directors Lindsay Greiner, Keota Larry Marek, Riverside Tom Oswald, Cleghorn April Hemmes, Hampton Staff Credits Editor | Ann Clinton Sr. Dir., Information & Education | Aaron Putze, APR Creative Manager | Ashton Boles Photographer | Joseph L. Murphy Writer | Bethany Baratta Writer | Heather Lilienthal Writer | Lauren Houska Writer | Katie Johnson Sales Director | David Larson Iowa Soybean Review is published eight times a year by: Iowa Soybean Association 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023 (515) 251-8640 | iasoybeans.com E-mail: aclinton@iasoybeans.com For advertising information in the Iowa Soybean Review, please contact Larson Ent. LLC (515) 440-2810 or Dave@LarsonentLLC.com. Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first day of the month preceding publication. In consideration of the acceptance of the advertisement, the agency and the advertiser must, in respect of the contents of the advertisement, indemnify and save the publisher harmless against any expense arising from claims or actions against the publisher because of the publication of the content of the advertisement.
10 Meet the President
Jeff Jorgenson is no stranger to managing his time on and off the farm.
18
Record Pace
Early soybean sales show promise for strong year.
22
Continuity Through COVID-19 Selling soybeans amid a global pandemic.
24
Beyond Bean Yield ISA-developed tool to assess economic impact of quality mapping.
On the Cover: A patriotic granary stands in a field north of Kanawha. The structure receives plenty of attention from passersby, especially during Independence Day and Election Day.
IOWA SOYBEAN REVIEWÂŽ | 3
Executive Insights Kirk Leeds, ISA Chief Executive Off icer kleeds@iasoybeans.com
Power of Policy You’ve always had a keen interest in public policy. Why? I ran for a seat in the Iowa House of Representatives when I was 26 years old because I knew engaging in the policy arena was important to me and the state that I love. Although I was unsuccessful in that bid, I saw firsthand that those who are engaged are the people who influence decisions that impact people’s lives. It’s the same reason I joined the staff of a Presidential campaign in Iowa a couple of years later. We need more Iowans to engage.
What issues(s) impacting farmers are likely to dominate the upcoming legislative session? The impact of the pandemic on Iowans and our state’s economy. Although Iowa’s budget is in better shape than most states, the uncertainty will likely cause legislators to have a less aggressive agenda. ISA will continue to support efforts to expand biodiesel usage and increase funding for enhanced water
quality and soil health outcomes. We will be making sure that the limited state tax dollars are targeted toward the needs of our farmer members.
What is unique about ISA’s approach to advocating for soybean farmers on legislative matters? We have always taken pride in positioning our organization as transparent and one that makes decisions based on facts and data. We go where the data takes us. This approach has proven effective as policymakers see us as in this state as a valuable resource on issues impacting agriculture. Our credibility and consistency have given us the ability to affect issues as they are discussed, debated and decided.
Why doesn’t ISA have a Political Action Committee or endorse candidates seeking elected office? We are the only major ag organization in Iowa that does not have a PAC or endorse candidates. This approach has worked well for
ISA and the farmers we serve for several decades. ISA is a fully nonpartisan organization and our farmer leaders have shown on countless occasions our ability to work on both sides of the political aisle. Iowa’s Governor, legislators and our entire Congressional delegation on both sides of the aisle respect and appreciate our approach to advocating for soybean farmers. We have never had to contribute to a politician to gain access.
What is the most impactful thing a farmer can do to positively influence ag policy during the 2021 legislative session? Get engaged. ISA gives soybean farmers lots of ways to do so. It begins by becoming an Advocate Member and learning more about the issues that impact your farm. Attend local meetings with elected officials. Call or send an email to your state representative and senator when there is an issue you care about. Join ISA at its policy conference and legislative reception in January.
Aaron Putze, APR, Sr. Director of Information & Education, sat down with Iowa Soybean Association CEO Kirk Leeds to discuss international trade.
OFFICIAL NOTICE:
Iowa Soybean Association Annual Meeting January 26, 2021 | 1:00 pm | Embassy Suites, Des Moines
Held as part of the ISA Winter Soy Summit. Interest in attending, contact ckelly@iasoybeans.com
4 | NOVEMBER 2020 | IASOYBEANS.COM
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Policy Update Michael Dolch, ISA Director of Public Affairs, MDolch@iasoybeans.com
Old Fashioned and Thankful
T
o break from the policy, politics and politicians, this month’s column will look, feel and read a bit different. A welcomed break, I’m sure. As I stroke the keyboard, sip coffee and shoot a glance out the window, it looks like fall folded early and winter has won out. But it’s Iowa, and we all know that fall won’t go down without a fight through November and early December. Some folks loathe this time of year as the temperature drops, snow flies and the days get shorter. For some, though, including me, it’s perhaps the most wonderful time of year. Harvest is ending, hunting (shotgun) season is around the corner, football is still being played and the holidays are upon us. 2020 has been a bear. No other way to describe it. Both large and small, though, there’s much to be thankful for and look forward to. In late October, for example, I attended my first concert of the year. When Ned LeDoux took the stage and his guitar came to life, everything right up until that moment was suddenly left behind. All the worry, work and wild political accusations were gone. It felt good, dare I say normal(ish)
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with Wranglers pinching, boots tapping and music filling the air. For those who might not recognize the name, LeDoux is the son of rodeo champion and country music singer-songwriter Chris LeDoux. As Ned worked through the setlist, one number caught my attention. The song was called “Old Fashioned.” Rather than describe the song and story within, I’ll share the first lyric and chorus. Still favor the same ol’ hat And these worn-out pair of boots Sticking with tradition Proud of my roots Raised up on common sense Grandad showed me the way Staying true to my word Some things will never change Call me old fashioned, that’s fair to say That’s who I am, a little set in my ways Tried the brand new, but I just ain’t the same So call me old fashioned, I’m proud of that name
As we move beyond the endless attack ads, it’s an acute
reminder that while there are so many things out of our control – the market, the bank, the weather – there are many more we can control and be thankful for. For me, it’s my attitude, faith, family, friends, my roots and of course, my job working for you, the Iowa soybean farmer. Like LeDoux, call me old-fashioned, but I’m proud of that name. These words are hitting the page before the election, so as you read this after the endless speculation and analysis, things might look different. Maybe not. Regardless of the outcome, know that we are committed to working with our elected officials, on either side of the aisle, to advance commonsense policy and deliver a farmer-friendly regulatory environment for you and the soybean business. If you’ve opted in and belong to the ISA as a farmer member or Advocate, I’m here to provide an opportunity to be engaged and active within the organization. Got questions? Concerns? Ideas? Give me a shout. I would love to hear from you, the experts in the field. In closing, we are sending warm, heartfelt wishes from our farm to yours. Take care, talk soon.
unitedsoybean.org
KEEPING THE FUTURE OF SOYBEANS BRIGHT
From researching new uses for soybeans to identifying new markets for U.S. soy, the soy checkoff is working behind the scenes to create new opportunities and increase profits for soybean farmers. We’re looking inside the bean, beyond the bushel and around the world to keep preference for U.S. soy strong. And it’s helping make a valuable impact for soybean farmers like you. See more ways the soy checkoff is maximizing profit opportunities for soybean farmers at unitedsoybean.org
Brought to you by the soy checkoff. ©2018 United Soybean Board. Our Soy Checkoff and the Our Soy Checkoff mark are trademarks of United Soybean Board. All other trademarks are property of their respective owners.
IOWA SOYBEAN REVIEW® | 7
Activate or Validate Your Membership Your investment in the soybean checkoff powers the Iowa Soybean Association. Farmer membership is available to you at no additional cost. We customize your membership to meet your needs, sending you the information and providing the resources you need to make farming decisions that keep you competitive. Put our expertise and services to work for you — validate your membership today at iasoybeans.com/join.
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MAINTAINING OUR REPUTATION TO DELIVER
Whether shipping by river, road or rail, the soy checkoff is committed to ensuring America’s infrastructure is a significant advantage for U.S. soybean farmers. We’re looking inside the bean, beyond the bushel and around the world to keep preference for U.S. soy strong. And it’s helping make a valuable impact for soybean farmers like you. See more ways the soy checkoff is maximizing profit opportunities for soybean farmers at unitedsoybean.org
Brought to you by the soy checkoff. ©2018 United Soybean Board. Our Soy Checkoff and the Our Soy Checkoff mark are trademarks of United Soybean Board. All other trademarks are property of their respective owners.
IOWA SOYBEAN REVIEW® | 9
Meet the President
JEFF JORGENSON BY LAUREN HOUSKA
J
eff Jorgenson is no stranger to managing his time on and off the farm. He has served as an Iowa Soybean Association (ISA) board member for 11 years, traveled around the world promoting U.S. soy, and participated in countless discussions with elected officials. And he did this all while prioritizing sustainability and profitability on his family farm near Sidney. This year, Jorgenson has a new task on his plate – leading the ISA board of directors as president. The board consists of 22 volunteer farmerdirectors who meet throughout the year to develop ISA’s policies and programs and determine how to spend checkoff dollars. With his term already underway, Jorgenson sat down with the Iowa
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Soybean Review to share his optimistic view of the year ahead.
Has COVID-19 impacted the goals the board of directors have set? The pandemic hasn’t changed a lot of what we do as farmers. Our ability to make the face-to-face connections we rely on to promote our product is what has been impacted. It’s difficult to do our work trying to make farmers more profitable when we can’t meet with buyers to showcase U.S. soy, sit down with policymakers to share our story or to have conversations with consumers. The ramifications could be long-lasting – I don’t think we know the full impact yet. We have to come back strong to make up for the lost time.
ISA has done a great job finding some creative solutions, from virtual meetings to social media campaigns to small, socially distanced meetings. Though much is still unknown, the hope for 2021 is to get these activities back on track and have our members highly engaged. We need to have that personalization to showcase what we do in agriculture.
How do farmers benefit from ISA’s work? One of the most challenging things we’ve seen in agriculture is the downturn in the markets and profitability over the last five years. We’ve seen soybeans take an uptick in the market recently, which is positive. I’m optimistic ISA can help continue that momentum into 2021 and get the
soybean industry and agriculture industies moving in a positive direction. When you think about how the association handles farm and environmental policy and tradespecific issues in Des Moines and Washington D.C., I think it is easy to see how these efforts are vitally important to our ability to farm freely. The association has an accurate pulse on the issues that impact our livelihoods and can help us tackle these issues headon, allowing us to farm today and into the future. Even more important is having our members engaged and telling their stories. If you aren’t yet, you need to be part of one of ISA’s many policy, trade and consumer engagement activities. Without the engagement of ISA members in policy, things will change in ways that farmers won’t recognize. We can take a leading role in developing and enacting policy and on-the-ground solutions that are beneficial for everyone.
What role does ISA play in production research? ISA’s research efforts are intense and immense. We will always have issues in production. There will never be a threshold that is enough – in agriculture, production is always a moving target. Farmers are always striving for a better and
larger crop and a more efficient way of bringing that crop from seed to sale. The production research we are doing is geared toward immediate solutions for farmers and long-term improvements to growing soybeans. Whether that is yield, management practices or pest management, ISA is seeking solutions. (Learn more about Jeff’s thoughts on an exciting new research program on Page 16).
Why should farmers be engaged with ISA? ISA offers so many programs that you can easily find something that will fit your interest, ability and schedule. Once you have the interest, that’s when the engagement starts — when you feel that the work you could do through ISA is beneficial for all of agriculture. Initially, I didn’t understand the association’s true impact on the industry. ISA’s capacity to impact positive change in so many areas is more than what I imagined. I didn’t believe it until I saw it. What I hope for every soybean farmer is that you can see the benefits of being involved with ISA more quickly than I did. You can start engaging and making an impact now. Your voice is heard and needed. Contact Lauren Houska at lhouska@iasoybeans.com.
If he’s not in a tractor or combine cab or tending to his cattle herd, you might find Jorgenson on his way to one of his three sons’ sporting events, accompanied by Jennifer, his wife of 20 years. In rare moments of downtime, Jorgenson can also be found laughing alongside his family to the dry humor of the hit TV show, The Office.
IOWA SOYBEAN REVIEW® | 11
Soy Powers a Combine A combine is the essential instrument of a farmer during harvest. With versatility and eff iciency, this powerful machine is considered one of the most signif icant inventions in agriculture. As this year’s harvest concludes, Iowa’s soybean farmers have a bounty of reasons to be thankful for the role their crops are playing in elevating bio-based solutions to farm f ields. Your checkoff dollars are always hard at work, funding research and bringing vital soy-based products to the market. From tires to panels to lubricants, take a look at how combines are reaping the value and benef its of soybeans.
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Key manufacturers creating soybased products:
• Renewable Lubricants, Inc. • Gemtek ® Products • Environmental Lubricants Manufacturing • Natural Soy Products • BioBlend ®
Fuel Combines can use biodiesel blends. In Iowa, concentrations up to 20 percent (B20) can also be used for other engines, providing the biodiesel used in the fuel blend meets American Society of Testing and Materials (ASTM) D6751 standards.
Many soybased, biodegradable products can be found in use on combines.
• Engine Oils • Equipment Parts and Components (Tires, Panels) • Extreme Pressure Greases • Fuels • Gear Oils • General Purpose Greases • Heavy-Duty Greases • Hydraulic Fluids • Multipurpose Lubricants • Synthetic Lubricants
Panels Envirez is a soy-based, sheet molding compound that John Deere uses in its tractors and some panels of the Deere S-Series Combine. Envirez was developed and commercialized by Ashland Specialty Chemical Company in 2001, with support f rom the soybean checkoff. Approximately 25% of the raw material in Envirez comes f rom soybean oil and ethanol. Each 37,000-pound batch of Envirez used by John Deere saves 10 barrels of petroleum and reduces greenhousegas emissions by 34,000 pounds. The company estimates that 2 million pounds of the sheet-molding compound are used in its tractor and
Lubricants, Oils & Greases Many products are available f rom companies such as Environmental Lubricants Manufacturing; Gemtek Renewable Lubricants, Inc.; National Soy Products; UltraLube; and BioBlend. For more information about specif ic products in this category, visit www. soybiobased.org/products/fleets or each company’s website.
Hydraulic Fluids: Bio-based hydraulic fluids are used in cylinders, pumps, valves, pistons and gears. Grease and Engine Oils: Soy oil and soy methyl ester are used to create high-performance penetrants and lubricants. Transmission Oil: Used in highpressure tractor hydraulics, transmissions and f inal drives that share a common reservoir.
combine panels every year.
Tires All the agricultures tires produced at Bridgestone-Firestone in Des Moines contain soy oil and are commercially available for purchase. A 900-pound farm tire contains approximately 90 pounds of soy oil, which equates to roughly eight bushels of soybeans.
IOWA SOYBEAN REVIEW® | 13
HARVEST 2020 WRAP UP BY JOSEPH L. MURPHY
ABOVE: Ethan Crow, an Iowa Soybean Association member from Marshalltown, checks the condition of a soybean plant while preparing to harvest one of his fields.
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Lowell Garrett prepares to harvest soybeans near Adel.
Randy Miller focuses on cutting soybeans near Lacona.
Rick Kimberley harvests soybeans near Farrar.
Bud Jorgenson tracks harvest progress near the Missouri River in Fremont County.
IOWA SOYBEAN REVIEWÂŽ | 15
Outcomes and Revenue ISA’s AgOutcomes connects farmers with capital to achieve environmental goals BY HEATHER LILIENTHAL
A
new revenue stream for Iowa farmers is making waves in statewide efforts to improve water quality, reduce nutrient loss, contribute to flood control, and help corporations and municipalities meet their own environmental commitments. It’s a unique approach championed and launched by the Iowa Soybean Association (ISA) and Quantified Ventures. To manage the fund, the ISA board of directors created a new entity called AgOutcomes, Inc., a wholly owned ISA subsidiary. It will cooperate with ReHarvest Partners, a newly-formed subsidiary of Quanitifed Ventures. Participating farmers are paid by ReHarvest Partners for those outcomes, including carbon sequestration or reductions in the loss of nitrogen and phosphorus.
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Farmers can access this new market opportunity by enrolling land in the Soil & Water Outcomes Fund. The fund provides payments to farmers who produce environmental outcomes. These outcomes are then sold to customers who benefit from them, including corporations, water or wastewater utilities and government entities. While ReHarvest takes care of the financial aspects of the Soil & Water Outcomes Fund, AgOutcomes supports the agronomic side of the equation.
A natural progression For Kirk Leeds, ISA CEO and AgOutcomes president, the approach is unique in structure, but follows a well-established approach led by farmer leaders.
“The creation of AgOutcomes is a natural progression from 20 years of the board’s desire to be a leader for farmers in conservation,” says Leeds. “Many resources have been invested throughout the years to understand the state’s environmental challenges and how they play a part in the economic and agronomic focuses of our farmers.” Leeds points to ISA’s investments in staff and programs, leading to farmer efforts installing bioreactors, cover crops, saturated buffers, water monitoring, and ensuring productivity and profitability aren’t compromised. “The board has been building these components so the association can support farmer productivity and profitability. One example is the board’s support of funding opportunities, such as legislation to
spur action in Iowa’s Water & Land Legacy Fund. It calls for a 0.375 cent sales tax increase to create a sustained funding stream to provide support farmers need to make investments in upstream practices for downstream benefits. “Farmers want investment and action that lead to improved water quality,” adds Leeds. Adam Kiel, AgOutcomes executive vice president, says it’s an exciting new chapter for ISA and Iowa farmers. “This is a response to the market signals we recognized – our partners are willing to invest in environmental improvements from farmers upstream to help them meet their own environmental goals and commitments,” Kiel says. “This is an exciting new market opportunity for farmers to produce and sell environmental outcomes.”
Forward vision For ISA President Jeff Jorgenson, hard questions about
the concept needed to be voiced. Ultimately, the structure proved to be an opportunity for ISA and Iowa farmers, which solidified board support. Jorgenson has served multiple terms on the ISA board, keeping his eyes open for new ideas. “At the end of the day, one of the most important responsibilities of being on this board is a focus on farmer profitability,” explains Jorgenson. “We needed to find a platform with high potential and that is easy to understand.” David Walton farms near Wilton and serves on the ISA executive committee. When presented this opportunity, he contemplated the board’s past work and the current endeavor that will open for enrollment this winter. “It’s exciting. We can see all the work the board members before us completed,” Walton says. “I hope the soybean board of the future sees the things we are doing now and feels proud of the vision.”
Every acre is an opportunity For Walton, the main “why?” for farmers is the potential for an additional revenue stream. And for those considering adding a new practice, but couldn’t take on the financial investment or perceived risk, they can be compensated to cover costs. “My first impression was that this thing could have legs as the pilot phase progressed,” Walton says. “The impact will help our state and beyond. It’s tremendous.” Plans include expanding enrollment in the Soil & Water Outcomes Fund to surrounding states. It’s unique and dynamic, but Jorgenson is quick to bring things back to the association’s mission. “I keep this question center as we consider such things: how can this make a difference for soybean farmers and helps their bottom lines?” he says. “Every acre is an opportunity, and this will help us make more of every acre. Hopefully, it’s a tool to help keep farmers farming.” Contact Heather Lilienthal at hlilienthal@iasoybeans.com.
Adam Kiel, Ag Outcomes executive vice president, is excited for farmers to learn about seque num atur, adit quatem. Bitiis the new market opportunity of producing and doluptiis aspiend emporerum iligenis ac selling environmental outcomes.
IOWA SOYBEAN REVIEW® | 17
Chuck White, Iowa Soybean Association District 1 director, says it is critical for Iowa’s soybean industry to have export opportunities.
RECORD PACE Early soybean sales show promise for strong year BY BETHANY BARATTA
I
ndisputably, the tit-for-tat trade war between the United States and China impacted soybean sales. Shipments of U.S. soybeans to its largest soybean customer were down more than 50% between 2018 and Jan. 2020. However, China has been making increased purchases of soybeans and other ag products this fall to fulfill its commitments under the Phase 1 agreement. In the first five weeks of the soybean marketing year (Sept. 1-Aug. 31), the United States has exported
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6.7 million metric tons (246.18 million bushels) of soybeans; 4.5 million metric tons have been sold to China. That amount, says Mac Marshall, vice president of market intelligence for the U.S. Soybean Export Council (USSEC) and the United Soybean Board (USB), is five times what the United States shipped to China through the first five weeks last year. “Perhaps, more importantly, it is also a record level for this point in the season, outpacing pre-trade war levels,” Marshall says.
There are total commitments (exports shipped plus sales not yet shipped) of more than 40 million metric tons to global customers, according to Marshall. Of that, China has committed to more than 22 million metric tons. Commitments from buyers outside China are up over 60% relative to prior-year levels to date. “There’s been a lot of aggressive buying by China, but that’s not the only market we’re excited about,” Marshall says.
Countries like Egypt, Bangladesh and the Philippines have shown growth in imports of U.S. soybeans. Nigeria, a frontier market for U.S. soybeans, is also showing promise. The African country is expected to add 200 million people by 2050, surpassing the United States and doubling its current population. The United States is ready to meet the country’s expected demand for protein as it’s economy prospers. “U.S. soy is positioned as the primary supplier of high-quality soybeans and soybean meal for the country’s animal sectors,” Marshall says.
Exports critical Opening export opportunities is critical to the success of Iowa’s soybean industry, says Chuck White, ISA District 1 director from Spencer. “With 60% of our soybeans going overseas, trade is essential,” White says. “We must have trade with countries around the world; not only China but all countries.” The U.S. soy industry can’t forget about the relationships built with customers in China, says Kirk Leeds, ISA CEO. Leeds says a visit to China is a high priority when it’s deemed safe to resume regular relationship-building travel activities.
“Regardless of the political disarray, tariffs and counter-tariffs, at the end of the day, Iowa soybean farmers just want to be able to provide a high-quality soybean to our customers in China and everywhere else,” Leeds says.
Out-of-the-box solutions ISA commissioned a study (see right) evaluating solutions to offset the losses felt by Iowa soybean and corn growers due to the trade impasse between the United States and China. Currency devaluations in Brazil and Argentina – by as much as 75% the past two years – also affected the United States’ ability to be competitive in the world market, impacting prices and exports the past three years. ISA Director of Market Development Grant Kimberley says unfair currency valuations mean global customers go elsewhere, like Brazil and Argentina, to source their soy needs more cost effectively. “We can sign all the trade deals we want, but if we’re not cost competitive due to unfair currency issues with our competition, then it’s still going to be a challenge to sell our products,” Kimberley says. Contact Bethany Baratta at bbaratta@iasoybeans.com.
“With 60% of our soybeans going overseas, trade is essential. We have to have trade with countries around the world; not only China but all countries.”
SOLUTIONS Iowa State University economists Dermot Hayes and Chad Hart offered suggestions on improving farmer profitability and market share in the face of headwinds. China agreed to make purchases under a Phase 1 trade agreement earlier this year, largely ending the trade war between the countries. In addition to this, Hayes and Hart also suggested: 1. An emergency short-term revival of the Export Enhancement Program, in which exporters are awarded cash payments that enable an exporter to sell certain commodities to specified countries at competitive prices. 2. Improvements to the export guarantee program, which provides credit guarantees to encourage financing of commercial exports of U.S. ag commodities. By reducing financial risk to lenders, credit guarantees encourage exports to importers in countries – mainly developing countries – that have sufficient financial strength to have foreign exchange available for scheduled payments. Kimberley says the solutions presented in the report, while not necessary to implement now due to dollar, peso and real valuation improvements, are short-term, emergency-type policies that are starting the conversation at the national level. “The Phase 1 trade agreement appears to be implemented, and conditions are improving, but these are concepts to have in our back pocket should the U.S. dollar strengthen and the Brazilian real and Argentine peso weaken, making us less competitive,” Kimberley says.
— Chuck White, farmer from Spencer
IOWA SOYBEAN REVIEW® | 19
GLOBAL SOY VISION The U.S. Soybean Export Council (USSEC) works to build a preference for U.S. soybeans domestically and abroad. Here’s a snapshot of four countries that present marketing opportunities for U.S. soybeans. BY BETHANY BARATTA
NIGERIA
EGYPT
Population: 200 million
Population: 100 million
Soy imports: whole soybeans
Soy imports: whole soybeans
2019/2020 soy imports: 0
2019/2020 soy imports:
Marketing opportunity: 500,000 metric tons per year
About this market: Kevin Roepke, regional director for the Asia SubContinent for USSEC.
Nigeria is already one of the largest wheat importers and a rapidly growing poultry importer. The soy industry can leverage these commercial relationships to model a robust soy supply chain. Conversely, Nigeria is plagued with low purchasing power, low life expectancy (55 years) and a critical lack of inf rastructure. USSEC’s strategy is to create long-term relationships that will enable the U.S. to seize opportunities by establishing a Soy Excellence Center – the flagship program – in Nigeria. This will be the technical and policy pillar to advance the region’s soy supply chain.
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3.8 million metric tons
Marketing opportunity: 4.5 million metric tons
About this market: Brent Babb, regional director for Greater Europe and Middle East/North Af rica for USSEC.
Egypt is now the third largest export market for U.S. soybeans. Growth has been exceptional in the last four years increasing by nearly 3 million tons. Expanding soy crush along with fastgrowing poultry, aquaculture and dairy industries are driving the growth. In 2019, USSEC launched is f irst worldwide Soy Excellence Center in Egypt to continue building on this success.
BANGLADESH
PHILIPPINES
Population: 164 million
Population: 109 million
Soy imports: whole beans, soybean meal
Soy imports: whole soybeans,
2019/2020 soy imports: 1.62 million metric tons of soybeans, 51, 000 metric tons (MT) of soybean meal
Marketing opportunity: 2.5 million
metric tons of soybeans, 500,000 metric tons of soybean meal
About this market: Kevin Roepke,
regional director for the Asia Sub-Continent for USSEC. Bangladesh is a fascinating country because it’s half the population of the U.S., but an area the size of the state of Georgia. This population and density make for great opportunities. Just this year, we’ve seen soybean purchases double year over year, and become a top 10 importer. The country is entrepreneurial, eager to learn and loves U.S. soy. Its crush industry is rapidly growing as incomes rise and more poultry, meat, eggs, f ish and oils are consumed. USSEC is doing everything possible to engage with stakeholders to position the U.S. advantage to seize the tremendous opportunities that avail themselves.
soybean meal
2019/2020 soy imports: 141,614 metric tons of soybeans, 2.4 million metric tons of soybean meal
Marketing opportunity: 250,000 metric tons of soybeans by 2025, 2.5 million metric tons of soybean meal
About this market: Timothy Loh,
regional director for Southeast Asia region for USSEC. Af rican Swine Fever (ASF) and COVID-19 continue to negatively impact the hog and poultry livestock sectors with USDA expecting a 20% decline in the hog population and decline in overall protein consumption due to the restrictive measures brought about by the contagion. Despite these challenges, the Philippines imported 2.41 million metric tons of U.S. soybean meal (Oct. 8 FAS Export Sales Report) compared with 1.95 million metric tons during the same time last season – a 23% increase as a result of increased market share and displacement of other competitive meals.
IOWA SOYBEAN REVIEW® | 21
Continuity Through COVID-19 Selling soybeans during a global pandemic BY BETHANY BARATTA
A
lmost immediately after an Iowa Soybean Association (ISA) delegation returned from its market development trip to Bangladesh and Pakistan, travel was grounded for more than six months due to COVID-19. But that hasn’t stopped ISA’s market development efforts. In the absence of travel, ISA members stepped up to meet customers virtually. ISA Past President Tim Bardole and ISA Board Member Robb Ewoldt greeted customers during the U.S. Soy Global Trade Exchange & Specialty Grains Conference, which was virtual this year. More than 800 customers attended the multiday event, which connected buyers worldwide with
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soybean growers and suppliers. In coordination with soybean industry consultant, Peter Mishek, ISA members joined farmers from other soybean-producing states on weekly calls with customers around the world. It was an opportunity to connect farmers and buyers, despite not being able to step foot on the farm or in an office. ISA District 3 Director Suzanne Shirbroun continues to connect with customers she met in the Philippines and Myanmar in March 2019 through her farm’s Facebook page. Shirbroun relies on her checkoff dollars to expand trade opportunities in countries where she can’t make a personal connection, especially this
year. Soybean checkoff investments support the efforts of representatives for the U.S. Soybean Export Council (USSEC), which builds a preference for U.S. soy in offices throughout the world. ISA also invests in the U.S. Meat Export Federation (USMEF) and the USA Poultry and Egg Export Council (USAPEEC), which grow markets for U.S. ag goods utilizing U.S. soy products. “The money we put toward USSEC, USMEF and USAPEEC works to our benefit,” says Shirbroun, who farms in Farmersburg. “I see these individuals in the country as my salesmen. We can’t be there, so we have these people doing the job for us.”
Bill Shipley, ISA District 7 director, believes in the importance of getting to know U.S. soy customers to have a better idea of what they are looking for.
ISA continues to work with Omaha-based Ag Processing, Inc. (AGP), the largest cooperative soybean processing company in the world, to grow markets worldwide. AGP delivers commodities like soybeans to numerous countries by way of bulk vessel, container or railroad. It serves as the conduit between farmers and buyers with six locations in Iowa, with agents in various countries working to grow markets for U.S. soybeans. The partnership with AGP and other Midwest states to build export opportunities remains critically important, says Kirk Leeds, ISA CEO. Though ISA members have embraced technology to be a part of various opportunities amid COVID-19, ISA District 7 Director Bill Shipley says it can’t fully replace face-to-face interactions or experiences like the one he had in
Indonesia. It was the first time he tried tempeh. The soy-based food product was fried, offered with various sauces and served at a dinner event during a market development trip there. That experience made Shipley think about soybeans as more than just feed for livestock, but as food for people worldwide. It was also there where Shipley formed relationships with end users, with whom he now exchanges emails. Shipley says his experience hosting delegations from various countries has provided insight on what his customers are looking for in U.S. soy products. “We have to cultivate relationships with people in
markets all around the world,” Shipley says. “We can’t turn our back on a market, even though a breakthrough in the market may seem impossible sometimes; maybe that relationship will pay off in five or 10 years down the road.” Farmers can’t control when travel restrictions are lifted. Still, ISA District 1 Director Chuck White says they can continue to produce the highest quality soybeans possible – whether it’s for livestock feed or tempeh. “As Iowa farmers, we’re driven to deliver a high-quality product that’s sustainable around the world.” Contact Bethany Baratta at bbaratta@iasoybeans.com.
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BEYOND BEAN YIELD
Tom Oswald, United Soybean Board director from Cleghorn
ISA-developed tool to assess economic impact of quality mapping BY HEATHER LILIENTHAL
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hile soybean yield remains the driver of farmers’ economic returns, mapping quality could lead to future marketing opportunities for Iowa and U.S. farmers. Research from the Iowa Soybean Association (ISA) measures agronomic and infield management impacts on soybean quality and provides a decision tool to help farmers apply those aspects to their bottom lines. Peter Kyveryga, ISA senior scientist of analytics, is testing tools to create maps of protein and oil. Kyveryga says yield maps are commonplace tools in most farmers’ combines and have been vital in precision agriculture since the 1990s. These maps help farmers determine fertilizer use, seeding rates, insurance rates and even rent payments. The maps can provide farmers with more data and may lead to more robust marketing opportunities down the road.
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Strengthen price, protect yield Kyveryga and his team are studying the effectiveness of soybean quality mapping and developing a decision tool to help farmers assess and consider economic advantages from the bean quality information. Kyveryga’s approach has evolved from using on-board combine sensors to collecting ground truth grain samples using aerial imagery. “We selected a certain number of sampling points from a field, combined with aerial imagery and soybean variety information, to create our soybean protein maps,” he says. “Now, with maps, we see where and how protein changes within fields.” To apply the mapping concept to study quality, Kyveryga says farmers need to map soybean protein and oil
content before harvest and tracking those characteristics. “We worked with four farms and tracked 25 fields in 2019 to collect the images several times throughout the season. The fields were scouted and on-the-ground samples from 10 locations were collected before harvest,” says Kyveryga. Maps were then made. Farmers could analyze the performance of different soybean varieties’ yield and quality. The next step was creating a calculator-like system to hone in on the economic factors. “For the farmer, we are focused on developing a useful tool, allowing them to plug in different options and economic simulations. It helps farmers understand the management needed and decide if the premium outcome is worth the effort,” he says.
While he’s not sure farmers will see a game-changing marketing opportunity touting quality and protein yet, Tom Oswald, who farms near Cleghorn and serves on the United Soybean Board, says he’s a farmer who craves data to support his decisions. “I want to know what is happening in that space,” Oswald says. “What do we understand about how protein varies in a field? Can we narrow down the management protocols and use precision agriculture and better data to provide those value components?”
Quality price potential Grant Kimberley, ISA’s senior director of market development, says the quality piece has the potential to increase the value of Iowa and U.S. soybeans. “If we can reach consistent increases in protein and oil content in U.S. beans, it helps us be more competitive,” says Kimberley. “When we export 60% of our beans, we need that edge.” Brian Kemp, a Sibley-area farmer, kept a close eye on yields as he recently
wrapped up his soybean harvest. “Our system still focuses on the rewards for yield,” he says. “That’s what puts money in the bank for farmers.” But, as an American Soybean Association director active with the U.S. Soybean Export Council (USSEC), he knows U.S. soybean quality is being marketed. “That’s what USSEC is all about, making sure buyers know the difference in the higher-quality soybean produced by U.S. farmers,” says Kemp. “Our beans with higher amino acid content are superior for feeding livestock. Right now, some markets pay extra for that value.” Years ago, Oswald traveled to Indonesia for a fact-finding mission and spoke to a poultry producer. “He told me he feeds millions of baby chicks each year and if my (U.S.) soybeans don’t offer enough protein meal, he’ll either need to spend more to supplement those gaps or buy from somewhere else, he says. “To be competitive, I need to find ways to make that a fit or he’ll go to another supplier.”
Industry interest The goal on the seed side of the equation is still about yield protection, Kimberley says. This, he adds, could be comparable to livestock farmers seeking particular genetics. “That philosophy will get to seed someday.” Kemp agrees this work can help international customers recognize U.S. quality and raise awareness for farmers and seed companies. “It’s playing a background role now as some major companies know protein content from certain areas of the U.S. are stronger and they are calculating that in the basis,” he says. Providing tools so farmers have clearer pictures of their fields, production costs and potential premium is vital to the equation. Kyveryga hopes mapping quality becomes as commonplace as mapping yield to help farmers capture more value for their beans. Contact Heather Lilienthal at hlilienthal@iasoybeans.com.
PREDICTED PROTEIN % MAPS Farm 1
Farm 2
Farm 3
Farm 4
Soybean protein maps generated from late-season digital areal imagery, soybean yield, digital soil and soybean variety information for four Iowa farms in 2019. Field sizes are not to scale.
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Letters to the Editior Dear Ann, This is my dad’s very first pickup. It’s a 1947 Dodge. When he was done driving it, the pickup rested behind the barn until several years ago when my brother restored it to better than new. This is a picture of the pickup outside the church at dad’s funeral. Debbie Hultman Gordon Hudson, Iowa
Dear Ann, Your editorial inspired me to write about my experiences with my farm trucks. As with anyone or anything you love, it is unfair to single out only one. My first pickup experience was with my dad's black 1961 Ford F-250. I learned to drive that pickup when I was 5 years old. I learned to shift the four-speed because my dad had cracked ribs; I sat in the middle and rowed the shifter while he ran the gas and clutch. The next pickup was dad's 1969 Ford F-250 with a V8 and automatic. It would burn rubber REALLY well – not that I ever demonstrated that to him!
I am incredibly grateful to have heard from so many of you about your farm trucks. If others of you have stories, send them in. If you have a comment about a story in the magazine, I want to hear about it. If you have thoughts about farming or agriculture in general, hit me up. It all matters to me.
Ann Clinton Aclinton@iasoybeans.com 515-251-8640
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When I started farming, I bought a 1983 Chevy K-10. With a warmedover small block and good gas – along with a cooperative tail wind – it would easily top 100 mph. Not that I ever demonstrated that, either, except to a very understanding county deputy. It hauled hogs and cattle. It also served as a seed tender and ambulance before being retired due to terminal rust. The engine deserves to live on in a hot rod someday, I hope. My next pickup is a 2000 Chevy Silverado. With V8 and four-wheel drive, it has plenty of power and is so comfortable. It easily handles stock trailers and NH3 tanks. Finally, my pride and joy is a 1963 Chevy C-30. With a lightly modified six-cylinder and a four-speed, it will scoot. Because it is a tonner, equipped with a nine-foot box, it has plenty of room in the box for oil and spare tires and other equipment when we tow it to the field to drive home later. Driving it takes me back to my youth. Harley Hassebroek , Buffalo Center
Dear Ann, I normally do not respond to any published articles; however, when I sat down last night and had time to read the last page of the Iowa Soybean Review, I couldn’t help but respond. My sophomore year in high school (1988) allowed me to drive a 1977 F-150. It had an in-line, six-cylinder and was four-wheel drive. It never set any speed records, but there wasn’t a dirt road, muddy field or back pasture it couldn’t go through. It ran trap lines and hauled many dead critters. It didn’t look very nice (it was orange) and wasn’t the coolest thing in the parking lot, but it was all I needed. I’m very grateful my folks bought it for me and feel it was a life lesson in many ways. Always enjoy reading your articles. They hit home with many folks, both old and young. Thanks for putting a “real” spin on things! Bryce Dee Marshalltown, Iowa
The Last Word Editor’s Notes by Ann Clinton aclinton@iasoybeans.com
Season of Thanksgiving
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he seeds you planted during a global pandemic were harvested this fall with a welcomed sense of normalcy. Even though the whole world is a little off-kilter, the natural progression of the seasons remained steadfast. As the year comes to an end, I am particularly thankful for this growing season. I believe it will be one we’ll all remember. We’ll likely be telling generations to come about the lessons learned in 2020. What started with so much uncertainty has developed into just another challenging time in agriculture. The year 2020 is now part of our collective story. Speaking of collective stories … I’m also thankful for the response to my last column about farm trucks. In the October issue of the Iowa Soybean Review, I asked for your farm truck stories, and you certainly delivered. I laughed … and cried … reading your memories. I have been so moved by the amount of emotion, effort and details in your letters. If there is a common tie among all you farmers, farm pickups certainly would be it. “You have to understand,” muses Mechanicsville farmer Steve Kirkpatrick, “farm trucks are an extension of family to us.” Some letters were too long to be printed and just too darn good not to be shared. Therefore, we decided we are going to blow up social media with all your truck stories. The
“Farm Truck Series” will run during November. Follow the Iowa Soybean Association on Facebook, Instagram and Twitter to read all the cool stories. In case you aren’t “social,” we will also have them posted on our website at iasoybeans.com. To say it was fun receiving your letters would be an understatement. I have a few follow-up stories I’m working on, so stayed tuned. But more than anything, please keep the conversation going. We have a lot to talk about within agriculture. I want you to keep turning to this page to see what’s being said and contribute to the narrative of our future while honoring the past. Randy Souder, who farms near Rockwell City, sent me a story about his truck experiences during the farm crisis, which prompted me to ask more questions. “We enjoyed the dialog,” says Randy Souder. “We have started some interesting conversations about the ‘80s and how that era shaped some of our business decisions and family life. I haven't thought much about those days recently.” If my columns have inspired you to think about things that are important to you, I consider that a great honor. The story of agriculture is so complex and compelling. For better or for worse, we are all in it together. Stay safe, my friends. I’m thankful for you.
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AT THE HEART OF IT. EVERY FARMER HAS THEIR REASON FOR WHY THEY DO WHAT THEY DO. FOR ME, IT’S FAITH, FAMILY, AND FARMING. I CARE ABOUT HONORING GOD AND FULFILLING HIS PURPOSE IN MY LIFE, IN MY FAMILY, AND IN THE BUSINESS OF FARMING AND AGRICULTURE.
SCOTT BECK, PRESIDENT