INVESTING CHECKOFF DOLLARS
THE CHECKOFF CREATES RETURN ON YOUR INVESTMENT By Tim Ostrem, Chairman of the South Dakota Soybean Research and Promotion Council
I
am Tim Ostrem, Chairman of the South Dakota Soybean Research and Promotion Council (SDSRPC), the board in charge of the South Dakota soybean checkoff. I farm with my brother and nephew between Centerville and Wakonda, South Dakota. My interest in serving on the SDSRPC began after participating in the checkoff’s See for Yourself program for a tour to the Pacific Northwest (PNW). We saw how South Dakota soybeans move from local elevators onto unit trains and then to the west coast. Once they arrive at port, the soybeans are loaded directly onto ships for export. Exporting from the PNW is the fastest and most economical way for international customers to source U.S. soybeans. Nine farmers serve on the SDSRPC. Each is elected to a three-year term, with a limit of three terms. Shortly after the See for Yourself trip, a council seat became available. I collected the signatures necessary to have my name placed on the ballot and was elected to the Council. The soybean checkoff was created through federal legislation as part of the 1990 farm bill. The United Soybean Board (USB) oversees the national soybean checkoff. The board consists of 78 farmers appointed by the U.S. Secretary of Agriculture. South Dakota has four farmers serving on that board. USB retains onehalf of soybean checkoff dollars collected nationally, and the other half goes to the state where the soybeans are grown. Research has always been a priority for South Dakota farmers through their soybean checkoff, relying on the personnel and resources of South Dakota State University (SDSU) and other universities. The SDSRPC is a member of the North Central Soybean Research Program, a 13-state collaborative research and outreach organization that focuses on soybean farmers’ interests and organizes research to leverage dollars and avoid duplication.
Winter Issue 2021
SDSL
State and national projects range from production research to new uses. New uses include renewable diesel made from 100% soy oil, soy-based tires, printing inks, artificial turf, dietary fiber, lubricants, plastics, and more. The Council recently invested in the BioProducts Institute, a public/private research project developed by SDSU and the South Dakota Mines.
TIM OSTREM SDSRPC Chairman
The SDSRPC directors continually debate which projects and activities will provide the best return on investment of your checkoff dollars. Promotion is typically a high priority since it helps drive demand for soybeans, and demand drives price. South Dakota farmers export about 65% of their soybean crop each year. We combine our checkoff dollars with other soybean-growing states to invest in the United States Soybean Export Council (USSEC) and World Initiative for Soy in Human Health (WISHH). These organizations engage with foreign buyers and users to promote the advantages of purchasing U.S.grown soybeans. We are also members of the United States Meat Export Federation (USMEF) and the United States of American Poultry & Egg Export Council (USAPEEC). Livestock is a tremendous consumer of soybeans, so promoting livestock worldwide increases demand for soybeans.There is satisfaction and reward in seeing the growth of uses and resulting demand generated by the checkoff. 5
