Iowa Soybean Review, Spring, 2017 by Iowa Soybean Association

Iowa Soybean Association

Spring 2017 | Vol. 29, No. 7

14 Home Grown Soy

Demand Landus Cooperative

will process an additional 6 million bushels of soybeans for a total of 20 million bushels annually.

Expert Marketing Advice As farmers hit the fields to

plant what is expected to be a record crop for the fourth consecutive year, savvy marketing becomes key.

Interest Reflects Quality Bringing farm fresh

content to an audience of nearly 90,000 food-minded Iowans is a priority of the Iowa Food & Family Project.

24 Fatten Up Your Diet It’s important to understand which fats are most beneficial for heart health and your waistline.

About the Cover:

Dennis and Kimberly Dibble of Fort Madison enjoyed Expedition Farm Country: a technology-focused “farm crawl” around the state. They were two of nearly 40 consumers who attended the event with the Iowa Food & Family Project last August.

Photo above: Mike Jackson (left) and his son have fun while looking at cover crops on their Rose Hill Farm near Oskaloosa. The Jacksons have hosted numerous farm visits to help consumers better understand modern agriculture.

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Iowa Soybean Association

EXECUTIVE review Kirk Leeds Chief Executive Officer Iowa Soybean Association kleeds@iasoybeans.com Twitter@kirkleeds

Building Demand for Soybeans Earlier this spring, I joined Iowa Secretary of Agriculture Bill Northey and a small group of Iowa Soybean Association (ISA) leaders on another trade mission to China. This trip was focused on meeting with key customers, particularly those leading the growth in pork production in Southern China. In interviews with Iowa media on our return, I was often asked not only about the specifics of our recent mission, but also a broader set of questions about what ISA is doing to expand overall demand for soybeans. With another anticipated record U.S. soybean crop this year, lots of soybean farmers have the same question. So, here is what ISA is doing in partnership with other soybean organizations across the U.S.: 1) Continuing to meet with current and potential Chinese customers, both in Iowa and in China â&#x20AC;&#x201D; a country that already buys more than 60 percent of all the soybeans exported from the U.S., but it's a market that we believe will continue to grow by 5 percent a year or more in the foreseeable future. We are placing an increasing emphasis on the growth in feeding soybean meal to fish in key aquaculture markets. 2) Continue to expand the market for U.S. soybeans and soybean meal in countries such as India, Vietnam, Mexico, Indonesia and Thailand while exploring opportunities in Northern Africa and Cuba.

3) Working with the Iowa livestock industry to expand domestic and global demand for pork, poultry, turkey, beef, dairy and eggs. 4) Engaging with others to make sure the harsh rhetoric we heard during the last presidential campaign doesn't result in detrimental trade relations with our trading partners. 5) Continuing to expand the use of domestically produced soybean oil in biodiesel and to work to stop subsidized biodiesel coming in from Argentina. 6) Expanding efforts to differentiate Iowa and U.S. soybeans and soybean products from competitors in the world, particularly from Argentina and Brazil. U.S. soybeans have a quality edge, transportation advantage, a dependability of delivery promise and the consistency of a stable government (I know, this one is getting more questionable) than do our competitors. 7) Helping introduce high oleic soybean oil into the market place to regain market share we have lost due to concerns about trans fats. Expanding opportunities and delivering results is what we do at ISA and building long-term demand is as critical today as it was in 1964 when the ISA was created. Best wishes for a productive spring. Stay safe. American Soybean Association Directors Morey Hill, Madrid Wayne Fredericks, Osage Brian Kemp, Sibley John Heisdorffer, Keota Dean Coleman, Humboldt United Soybean Board Directors Delbert Christensen, Audubon Larry Marek, Riverside Tom Oswald, Cleghorn April Hemmes, Hampton

For advertising information in the Iowa Soybean Review, please contact Larson Ent. LLC, (515)440-2810 or dave@larsonent.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. 4 | S P R I N G 2 0 1 7 | I A S OY B E A N S .C O M

Staff Credits Editor | Ann Clinton Communications Director | Aaron Putze, APR Creative Manager | Ashton Boles Photographer | Joe Murphy Staff Writer | Carrie Laughlin Staff Writer | Matthew Wilde Staff Writer | Dorothy Tate Staff Writer | Allison Arp Staff Writer | Michelle Jones Staff Writer | Easton Kuboushek Sales Director | David Larson The Iowa Soybean Review is published eight times a year by: Iowa Soybean Association 1255 SW Prairie Trail Parkway, Ankeny, Iowa 50023 Phone: (515) 251-8640 Web address: iasoybeans.com E-mail: aclinton@iasoybeans.com

Iowa Soybean Association can also be found on these sites:

IOWA'S SOYBEANS FEED THE STATE'S LIVESTOCK More than 116 million bushels of soybeans are fed annually to more than 22 million hogs and pigs in the state. On average, each hog eats about 138.5 pounds of meal crushed from 2.9 bushels of soybeans. Hog production statewide utilizes, on average, 2.8 million tons of soybean meal annually. Raising pigs in Iowa is good for the Iowa soybean farmer. That's just one reason the Iowa Soybean Association is a proud, founding member of the Coalition to Support Iowa's Farmers.

To find out how the Coalition can help you at no cost, visit SupportFarmers.com 1.800.932.2436

Preparedness, Planning and Discipline By Carol Balvanz, Policy Director These sound like winter-time farmer topics. This is what we tell ourselves to do when we’re sitting at the computer and thinking about what we can get done that will help our next growing season. We order inputs. We develop field plans. We study long-term weather forecasts to see when fieldwork might begin. We talk with neighbors, suppliers, experts and even consult the Farmer’s Almanac. Most of the farmers I know are planners. They really don’t like surprises. Over the past several years, many farmers have been surprised with the number and scope of new regulations placed on farming practices. We respond to most of these increased regulations by writing comments and speaking with our Congressional delegation, in addition to fuming at the coffee shop and association meetings. We create cost-benefit analyses that are usually heavy on the costs and find few benefits. Until recently, we have not been very successful at rolling back regulations with good-old farmer-common sense. Two recent examples of regulations impacting farmers are the WOTUS rule (which would have extended EPA’s jurisdiction for water regulations far past the “navigable waters” point), and pesticide restrictions (which would have required permits to spray over a grass waterway or other possible watercourse). Very few of us understood how we could or should prepare to follow those regulations,

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but we have learned through experience that expanded regulations always increase our costs to operate. Most farmers are relieved that these two regulations, and hopefully others, may be eliminated by the new administration. The Trump administration has promised to review and provide relief from many of the regulations facing business, including farming. These regulations include tax and property rights policies as well as environmental and general business regulations. We have an opportunity to highlight which regulations harm farmers the most without providing public benefit. The Iowa Soybean Association’s Policy Advisory Council spent a good share of their recent meeting looking at possible regulation roll-backs and developing a document to share with both our Congressional delegation and advisers within the Trump administration. Real regulatory relief requires that we prepare and provide the stories and examples which illustrate both the intended and unintended consequences of regulations on our ability to make a living. If you have examples of negative regulatory impact on your farm, I’d like to hear them. (Please email me at cbalvanz@iasoybeans.com). The opportunity to make regulatory change is real in the next two years. Let’s prepare our plan and go to work.

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Lawsuit Dismissal Catalyst to Conservation By Matthew Wilde and Aaron Putze, APR Farmers look forward to continuing water quality improvement efforts, which they say were bolstered by the dismissal of the Des Moines Water Works lawsuit recently U.S. District Court Judge Leonard Strand threw out the water work’s lawsuit filed two years ago against three northwest Iowa counties. The suit alleged boards of supervisors in Sac, Buena Vista and Calhoun counties allowed agricultural drainage tile in drainage districts — under county supervisor control — to funnel nitrates into the Raccoon River, a primary source water

for the utility. The water works sought compensation to pay for nitrate removal costs. It also wanted drainage tiles to be considered point sources of pollution under the Clean Water Act, which would require federal discharge permits. Utility officials blamed farmers for water pollution, and they hoped the suit would bring about more regulations on agriculture. Strand dismissed the suit for lack of standing considering drainage districts’ limited status under Iowa law and ruled that the state legislature was the proper venue to

address the issue. The Iowa Supreme Court earlier shot down the water works’ attempts to collect monetary damages. Iowa Soybean Association (ISA) leaders and members say now that the divisive lawsuit is finished, rural and urban residents can collaboratively work to keep nutrients on the land and out of water. “The decision dismissing an expensive and needless lawsuit is welcomed news,” says ISA President Rolland Schnell of Newton. “It restores momentum behind projects that actually increase the scale and pace of adoption of conservation practices by all Iowans, including landowners and farmers.” He notes several practices advanced by the ISA:

Lindsey Greiner

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• Cover crop use is anticipated to increase to 750,000 acres this year, a jump from about 500,000 in 2015 and 10,000 in 2010. • ISA tile water monitoring conducted last year documented a 29 percent nitrate concentration reduction in fields with cover crops. • ISA monitoring of bioreactors has shown a 20-50 percent reduction in nitrate concentration. The association is increasing the number of bioreactors deployed statewide as well as the installation of saturated buffers. “Iowa soybean farmers remain steadfastly focused on advancing real solutions to better water,” Schnell says. “Watershed planning, an approach ISA is heavily invested in, is the catalyst for long-term improvement in water and nutrient management.”

ISA Treasurer Lindsay Greiner of Keota said Strand’s ruling is good for agriculture and Iowa. He will move full steam ahead with plans to conduct more trials to determine what cover crops and management practices work best on his farm to reduce nutrient runoff. The hog and grain producer is slowly adding cover crops to the plethora of conservation practices already used on his operation like buffer strips along streams, grass waterways and terraces. With litigation no longer looming, Greiner believes other farmers and landowners will do more as well. “Now is the perfect time to come together and approach our water quality issues in a coordinated effort rather than worrying about a lawsuit, lawyers and arguments about who’s doing what,” Greiner says. “Now

we can focus on what’s important: improving water quality and soil health … an issue important to every person in Iowa.” Des Moines Water Works CEO and General Manager Bill Stowe stated the utility’s board will review its options. Doug Struyk, attorney for the Iowa Drainage District Association, said that while the ruling provides reason for optimism, there’s still an opportunity for the water works to appeal. In the meantime, he said farmers and drainage districts should continue being responsible stewards of the land. Whether the lawsuit was ongoing or not, ISA member A.J. Blair of Dayton said it doesn’t affect the way he farms. The young livestock and grain producer will continue to plant cover crops, use no-till and other conservation practices. “We have a voluntary nutrient reduction strategy in the state that most farmers are working hard to comply with,” Blair says. “There’s a lot of progress going on.”

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Questions with an

AG TIRE EXPERT Scott Sloan, Ag Product Manager, Titan Tire By Easton Kuboushek

lanters have already hit the fields, but many farmers won’t give a second thought to the tires they’re rolling on. If managed properly, farm tires can last longer, perform better and improve the bottom line. Iowa Soybean Association recently sat down with Scott Sloan, Ag Product Manager at Titan Tire International, Inc. to discover how managing farm tires can improve profitability. Sloan has more than 30 years of agriculture tire manufacturing experience and helped Titan become the largest manufacturer of ag wheels and tires in the world.

How can farmers manage tires to reduce compaction?

Farmers can do a lot by simply managing inflation pressures. Just because there’s a max PSI number on the sidewall doesn’t mean the tire needs to be inflated to that level. Farmers need to take into account the weight load of the equipment to optimize its groundbearing footprint. If farmers do only one thing to maintain their tires — it should be managing inflation pressures.

What are other tire performance problems?

Two of the most common problems we run into are road lope and power

hop. When a farmer spends 12-14 hours in the cab, the last thing they need is to bounce uncomfortably during highway travel, slowing them down from field to field. Similarly, power hop commonly occurs in highdraw bar applications, which not only is uncomfortable, but can keep you from getting the seed in the ground during planting.

What can be done to manage these concerns?

Managing tire pressure can ease these issues, but farmers can also benefit from Low Sidewall Technology (LSW) tires. Sidewalls can act like springs in the tire; increasing air pressure can dampen the springing effect but that decreases the tire footprint. LSW tires have a larger rim diameter and shorter sidewall, which helps dampen these affects without the need to increase inflation pressures.

How can farmers make more profitable decisions about their tires?

Consider using radial tires if not already. Radial tires offer more footprint area, which means better traction and efficiency, helping reduce

fuel consumption. Also, look at tire sizing — the bigger the tire the lower the risk of compaction. Forever, tractors have had their tires set up to function around rows in crop production. Studies show the majority of farmers don’t do true row-crop, meaning they don’t need their tires to straddle the rows. Farmers should consider single “floater” tires in place of dual configurations to increase footprint, reduce pinch row problems, rutting and other compaction issues.

NEED A QUICK AND EASY WAY TO CALCULATE TIRE PRESSURE?

There’s an app for that! Your smart device can be a valuable tool when increasing tire efficiency. Visit your iOS or Android app store and search “tractor tire pressure app” to find a list of calculators including, Tire Manager from Titan International, Inc.

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TRUMP & TRADE: Soybeans caught in the middle By Matthew Wilde

oybean farmers hope the new president has a trump card up his sleeve when it comes to trade. Speculation about potential reductions of soybean and soybean product exports escalated after President Donald Trump took office. His trade and immigration policies and tough talk about striking fair trade deals and potential ploys to narrow the country’s $500 billion trade deficit were applauded by some and booed by others. As expected, Trump pulled the U.S. out of the 12-nation Trans-Pacific Partnership (TPP) free trade agreement. Agricultural groups, including the Iowa Soybean Association (ISA), supported TPP because lowering or eliminating tariffs on U.S. ag products would spur sales, especially soybeans. Trump believes better deals can be made negotiating with one nation rather than multiple ones simultaneously. The president plans to renegotiate the North American Free Trade Agreement (NAFTA) and build a wall on the Mexican border. He also floated the idea of imposing a 20 percent tax on Mexican imports to pay for it. In addition, Trump suggested a

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hypothetical 45 percent tax on Chinese imports to narrow the trade imbalance between the two countries. Reaction from world leaders — especially the United States’ two largest agricultural trading partners, China and Mexico — were less than favorable, at least initially. Potential for a trade war persists. “That’s a big threat,” says ISA President Rolland Schnell of Newton. “In visiting with farmer friends, there’s plenty of anxiety. Some fear we will lose soybean market share. “But being an optimist, I have confidence our president will negotiate as good or even better free trade agreements than we’ve had or were proposed before.”

Exports: Situation critical

U.S. farmers harvested three record soybean crops in a row, the latest at more than 4.3 billion bushels. Ending stocks for the 2016/17 marketing year are projected at 435 million bushels — more than twice last year’s final tally, according to March government estimates. And, the nation’s farmers are likely to plant more soybeans than ever at 89.5 million acres.

Even though soybean exports are forecast at more than 2 billion bushels, Schnell says any reduction of that record amount could hurt farmers given the down farm economy. “It’s a real possibility there could be repercussions in the farming sector,” he says. “Farmers need to protect their bottom line with options, puts or whatever they need to do.” Soybean prices gradually fell after the inauguration, losing more than 60 cents per bushel near the end of February. The government estimates the season average soybean price at $9.30 to $9.90 per bushel, which is below Iowa State University (ISU) per bushel cost-of-production estimates for rented ground. For soybean farmers to be competitive and have a chance at profitability, robust exports are a must. That makes this year’s multiple trade missions to China, Mexico and other key buyers more important than ever, Schnell says. China is by far the largest purchaser of U.S. soybeans at more than 1.1 billion bushels in the 2015/16 marketing year. Mexico is the second largest buyer at nearly

131 million bushels and the largest importer of U.S. soybean meal at nearly 2.2 million metric tons. “We will stress the dependability of our supply system and quality product,” Schnell says. “Some things are out of our control, but we will continue to build relationships and strengthen existing ones through soybean checkoff programs. When all else fails, sometimes it’s relationships that pull you through.”

in being self-sufficient and look elsewhere (for grain and meat).” Sen. Chuck Grassley, R-New Hartford, who still farms with his son Robin, continually reinforces the importance of agricultural trade with the Trump administration to expedite favorable deals and calm the waters. He suggests soybean farmers do the same. He and Sen. Pat Roberts, (R-Kansas), met earlier this year with Peter Navarro, who heads the new White House National Trade Damage done? Council, and Jason Greenblatt, ISU economist Dermot Hayes the administration’s international fears Trump’s actions have already negotiator. hurt farmers. “We made a big pitch for The agricultural trade expert agriculture and its importance. says the president’s trade policies If the president thinks he can and tariff threats have and will negotiate a better deal than past likely disrupt exports in the future. presidents, no Iowa farmer will find Soybean producers should be fault with that,” Grassley says. worried, he contends. Based on what Trump said on “The damage has already been the campaign trail and after the done,” Hayes says. election, Iowa’s Here’s a few senior senator examples: is convinced the president • A Mexican will do right by senator called agriculture. for legislation ISA Market to quit buying corn from Development the U.S. Director Grant Dermot Hayes Kimberley feels • Mexican the same way. leaders There’s a lot of knowledgeable expressed a desire to buy more voices, including the ISA and new soybeans, soybean meal and corn from South America. Brazil Secretary of Agriculture Sonny and Argentine leaders and trade Perdue, talking to the president groups express strong interest about trade, Kimberley says. to oblige. There may be a few bumps along the road, but grain sales • According to reports, China won’t suffer. threatened to pull back purchases of U.S. products in Fundamentals and economics retaliation for a hypothetical 45 dictate it, Kimberley says. China’s percent tax Trump threatened to food system is built on soybean put on Chinese imports. imports, and South America can’t fulfill all their needs by a long Analysts generally believe shot. Price, quality and reliability Trump’s tough trade talk is his way still favor U.S. corn, soybeans and to get countries to negotiate more soybean meal in Mexico. favorable trade deals. Hayes is “I think in the end logic will skeptical it’s working. win out. Everyone needs to eat,” “We rely on countries to take our Kimberley says. “Trade wars, products and they rely on us to be especially when food is involved, reliable and rational,” Hayes says. “When we start behaving differently, not only hurt the seller but the consumer.” they become more interested

Rolland Schnell

FOR SOYBEAN FARMERS TO BE COMPETITIVE AND HAVE A CHANCE AT

PROFITABILITY, ROBUST EXPORTS ARE A MUST

Donald Trump

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Investing Checkoff Dollars

Mark Cullen, Landus Cooperative chief animal nutrition officer, shows off the cooperative's new SoyPlus production line.

HOME GROWN SOY DEMAND By Matthew Wilde

ore of Iowa’s record soybean crop will be processed in-state as Landus Cooperative ramps up production of SoyPlus® dairy feed. The cooperative spent $27 million to add a new production line at its Ralston soy processing plant. It became operational in November 2016. It couldn’t happen at a better time after the state’s farmers harvested nearly 572 million bushels of soybeans last year, according to government data — a third record crop in a row. Adding a third production line allows Landus Cooperative to increase soybean processing capacity by 50 percent to meet growing demand for SoyPlus, according to CEO Milan Kucerak. The plant can now produce 575,000 tons a year of the industryleading high bypass protein dairy feed ingredient. Kucerak says the expansion will benefit the cooperative, members and all soybean farmers. “The demand for the product continues to grow,” he says. “Historically, Ralston has had the strongest soybean bid in the area because we put beans through the

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plant creating a value-added product. “Not only do producers get a better price and more income in their pocket, we get a higher margin selling (SoyPlus),” he continues. “That makes us a stronger co-op, and those earnings come back to members in patronage.” The plant will process an additional 6 million bushels of soybeans for a total of 20 million bushels annually, according to the cooperative.

Big demand

Iowa Soybean Association Secretary Randy Souder, a Landus Cooperative member from Rockwell City, says additional local soybean demand will support or strengthen soybean bids. It’s welcomed news since prices continue to be pressured due to large U.S. bean inventories, record nationwide soybean plantings projected this spring and a recent huge South American harvest. “The expansion is a big deal,” Souder says. “Even if it helps basis by a few cents that could be the difference between making a profit and losing money.”

Typically, Kucerak says Ralston’s bids are 20 to 30 cents per bushel higher, on average, than other buyers. It wasn’t uncommon for truck traffic to reach 600 a day at the height of harvest. Even though Ralston has multiple state-of-the-art dumping pits capable of unloading more than 60,000 bushels per hour, Kucerak says wait times of two hours occurred during peak harvest days or when the team got tight on space. “To me that’s a testament that we have a strong bid. Someone won’t come and sit that long unless they are getting a more than fair value for their beans,” he adds. The cooperative estimates nearly 50 percent of all soybeans purchased from farmers during the current marketing year at its nearly 70 grain locations will be processed into SoyPlus at the Ralston plant. Kucerak expects the expansion will benefit all members and area soybean farmers for years to come. “We think (strong bids) will continue. SoyPlus is a success story,” he says.

Investing Checkoff Dollars

SoyPlus explosion

In the late 2000s after a downturn in the dairy industry, cooperative officials say demand for SoyPlus exploded — a 50 percent increase during a 90-day period. The plant’s original two production lines started running 24/7 churning out 30,000 tons per month, then 33,000 (rated capacity), then 35,000 and one time it hit 38,000. Mark Cullen, Landus Cooperative chief animal nutrition officer, says farmers learned SoyPLus helped increase cow productivity, improve animal and reproductive health and add value to their operations. “SoyPlus is a brand known in the dairy industry like Coke and Pepsi. They know it works,” Cullen says. “The plant was at capacity, and we knew there was an opportunity to expand to bring more product to more customers.” Eighty-five percent of SoyPlus is sold domestically and 15 percent is exported, according to the cooperative. The dairy feed ingredient is shipped to both coasts and is popular in Saudi Arabia, Mexico and Canada. “We have the unique ability to purchase locally-grown beans and share them with producers across the country and world in the form of

dairy feed,” Cullen says. Kucerak adds, “We’ve improved the standard of living for some people through better nutrition. That’s exciting and pretty humbling as well.” The expansion means soybean oil production will increase by 50 percent. All of the estimated 675,000 pounds produced per day is slated to be purchased by Renewable Energy Group, Inc., which will be processed into biodiesel at its facility next door. That facility is currently undergoing a $24 million expansion to more than double the current operating capacity. In anticipation of increased SoyPlus sales, Landus Cooperative increased its fleet of leased rail cars from about 270 to 490. The cooperative also plans to spend $5 million to boost soybean storage capacity from 6 million bushels to 9 million. The expansion is running at full capacity. As it’s been brought online, the cooperative has intentionally staggered sales with the start-up to allow for demand growth. “We are using the transition opportunity to work on presses and other mechanical maintenance in the original plant,” Cullen says. “There’s still plenty of opportunity to grow.”

Landus Cooperative estimates nearly 50 percent of all soybeans purchased during the current marketing year from farmers will be processed into SoyPlus at the Ralston plant. The soybeans go through several stages (pictured here) before being shipped to dairy farmers.

ADDING A THIRD PRODUCTION LINE ALLOWS LANDUS COOPERATIVE TO INCREASE SOYBEAN PROCESSING CAPACITY BY

50 PERCENT TO MEET GROWING DEMAND FOR SOYPLUS

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Investing Checkoff Dollars

EXPERT MARKETING ADVICE By Dorothy Tate Be proactive. Be realistic. Have a plan. As farmers hit the fields to plant what is expected to be a record crop for the fourth consecutive year, savvy marketing becomes key. Find out what advice experts have for marketing this monster crop.

Farmers should be taking advantage of the current price moves, but should not be fully sold as we head into the growing season.

It’s important to have this in your mind as we enter into the growing season. “I feel the producer has done a good job of

I recommend using Jan./Feb./March rallies to

marketing old crop beans into the rallies this

initiate sales up to 25-35 percent of anticipated

year. In Iowa, I am not sure what percentage

new crop production. There should be another

of old crop beans are remaining in the farmers’

25-35 percent sold during the late spring and

hands, but I do not feel it is a large amount. I

early summer, as we take advantage of normal

am not very optimistic on soybean price, and

seasonal price action. This is the time when

therefore would probably be more proactive in

the market faces the most uncertainty, and

getting the balance marketed. New crop bushels

uncertainty usually brings premiums. Ideally,

might be a better fit for the seasonal play.

”

over half of your expected soybean crop should be marketed by mid-July. Seasonality still peaks in June/July even in those ‘bearish’ years.

M AT T CA M PBE L L , Risk Management INTL FCStone Financial Inc.

It (2017) could just be the next

out logistical plan to keep both corn and

in a string of record-large crops, and

soybean bushels moving through the year.

we could potentially see a sixth or

You don't want to get stuck carrying over

seventh record in a row, so we need to

one crop to the next year.

be proactive. The 2018 futures spreads

“Be proactive. In a year of normal

already imply that the market will pay up

abundance, when there is no panic about a

for soybeans that are stored properly on

short crop, the best pricing opportunities

the farm, but it requires a well-thought

must be hedged before harvest. Save yourself the anguish of selling off the

ELAINE KUB, Author Mastering the Grain Markets: How Profits Are Really Made

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combine at harvest lows, or paying monthly fees for a price later contract, just be setting a price on your anticipated

”

bushels well before fall rolls around.

Investing Checkoff Dollars

The biggest thing is having a plan

rally believing that it’s a weather scare,

and sticking to it. It’s easy to sit down

like it normally is, then have it turn into a

in the winter when the markets aren’t

real problem and have your price averaged

very active and make a plan, but when

in way too low. We think finding a cheap

we’re in the middle of a rally and there

option to keep some upside exposure in

are weather people predicting doom, it

case we get a serious weather problem and

can be hard to stay disciplined and make

a true price explosion is very important.

those sales. We believe greed, hope and

There will eventually be another drought,

fear play a major part in marketing grain,

flood, etc. that sets production back in a

and having a well thought out plan will

big way, but no one knows if it’s this year,

help to eliminate those emotions from

or what year it’ll be.

your decision making process. “There’s two things farmers can’t afford

”

to do this year — miss selling into a summertime rally and sell into a summer

We have to be mindful of the fact that with growing supplies does not often come big robust opportunities. As we talk about

A J BEC K E R , Broker Frontier Futures

I wouldn’t be waiting for a spring rally. I would be rewarding the current one. “The reality for us as we talk about marketing

an incredible increase in acres and improving

in 2017 is we need to maintain a realistic view

weather forecasts, and a big South American

of the market. Lots of people are trying to pitch

crop and already large inventories, the thing

pretty high or low prices and we need to respect

we have to keep in mind is when rallies

the fact that over the years our market has

appear we have to reward them. It means

found a home $2 on either side of the current

selling. It means protecting. It means a lot of

price. As we talk about the risk, as we go forward

very defensive strategies that take advantage

that’s really what we are dealing with. It’s

of the opportunity at hand instead of hoping

plausible we could see $8 soybeans. It’s hopeful

and wishing and praying for something better.

we could see $12 soybeans. But that should not stop you from selling $10 soybeans. It’s a matter

M I K E NORTH , President Commodity Risk Management Group

of being realistic about these markets. If you find yourself being panicky about making a sale at these levels, that’s when you need to consider

”

making some option strategies.

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Investing Checkoff Dollars

INSIDE CHINA

CHINA PLANS LARGELY UNALTERED BY TRUMP By Jane Li

uring the 2016 U.S. presidential campaign, China became an important topic of Donald Trump’s foreign-policy and economics speeches. He often accused Beijing of “taking advantage” of the U.S. economy and manipulating its own currency to create favorable conditions for Chinese exporters in the American consumer goods market. Trump threatened to introduce tariffs to raise the price of Chinese goods in the U.S. market by up to 45 percent. Even now, months into the Trump administration, uncertainties for U.S. and China relations remain. Instead of speculating on the Trump administration’s intentions and posturing, the Chinese government appears content to move at its own pace,

continuing its trade liberalization and deepening domestic reforms. When China enacted domestic reforms necessary for World Trade Organization (WTO) membership in 2001, economic growth accelerated and income levels of Chinese people rose. In general, when a country liberalizes trade, the main beneficiaries are its citizens. In a recent address to the World Economic Forum at Davos, China President Xi Jinping likened protectionism to “locking oneself in a dark room” and signaled that China would look to negotiate regional trade deals. China’s ambitious “One Belt, One Road” initiatives will be strengthened over the next few years. These initiatives involve Chinese state-

led funding and construction of massive infrastructure projects in Asia, Africa, and Europe to create lucrative new business opportunities for Chinese and partner companies. Beijing also moved quickly to bolster the attractiveness of its own trade packages when Trump withdrew the U.S. from the Trans-Pacific Partnership, including the Free Trade Area of the Asia-Pacific and Regional Comprehensive Economic Partnership (RCEP). Countries like Australia were quick to express interest in the new China initiative. The Chinese government also recognizes that deeper reform is the only way forward for China’s sustainable economic growth. Deeper supply side structural reforms are considered key to the development of the agriculture

I M P O R T S O F AG R I C U LT U R A L P R O D U C T S N E E D E D TO M E E T T H E G R OW I N G D E M A N D S O F T H E D O M E S T I C L I V E S TO C K A N D F E E D I N D U S T RY A R E E X P E C T E D TO CO N T I N U E .

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sector, according to the 12th National People’s Congress in Beijing held in March. Below are some of the areas that were highlighted during the meeting: • Improve food security: Reduction of corn reserves was identified as a top priority for China's grain industry in 2017, as it was the previous year. In 2016, 42 MMT of corn reserves were sold through auctions. Multiple measures and channels will be employed to eliminate the remaining corn stockpile. They include improving the auction system to sell more corn, favorable tax treatment for processors, provision of tax rebates for exported corn products, subsidies for processors and transportation, support for the hog industry’s expanded use of corn and a potential expansion of fuel ethanol capacity. China plans to establish preservation regions dedicated to specific crops, including soybeans, cotton, rapeseed and sugar cane for the purpose of maintaining selfsufficiency. Swine production will remain stable and will be gradually relocated to larger operations and major corn producing regions. The

government will also foster domestic dairy brands. • Produce better farm products:

The Chinese government has called for increasing the output of highquality products based on green and innovative production. The country will maintain its zero increase in the usage of pesticides and fertilizers and vigorously control water usage in the sector. The reform also aims to refine the quality supervision and standards system for farm produce, control soil pollution, and encourage agricultural businesses to gain international certifications. • Increase farmer’s income: The government recognizes that successful agricultural supply-side reform depends on an increase in farmers’ income as well as more quality farm products. During the People’s Congress, there was a call for the implementation of rural land reform that distinguishes between farmland ownership rights, contract rights, and operating rights. These reforms would allow farmers to earn more by transferring their land rights to individuals or conglomerates.

• Improve training for the farm community: China will ramp-up

training for professional farmers and professional agricultural managers. Authorities will offer favorable taxation policies for business start-ups in rural areas in addition to support with financing, land use and social insurance. The nation will also encourage college graduates, entrepreneurs and students returning from overseas to start businesses and bring technological and managerial expertise to rural areas. Imports of agricultural products (like soybeans) needed to meet the growing demands of the domestic livestock and feed industry are expected to continue. At the same time, the Chinese government will encourage state-owned and private enterprises to work with other countries to establish production bases, processing, and storage facilities to increase agricultural supplies to the Chinese market. 2017 will be a challenging year for China and the U.S., as both countries have their own domestic and international challenges.

Xueqing (Jane) Li |

Li is a Principal at Ag Food Consulting (AFC), located in Washington , D.C. and has nearly 16 years experience in agriculture including extensive knowledge of industry, association and government network in China.

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Interest Reflects Quality

Iowa Food & Family Project audience grows to more than 90,000 By Aaron Putze, APR

consumer-facing initiative dedicated to empowering foodminded Iowans to make fact-based decisions about their food choices — and have fun doing so — continues to gain audience and influence. Last year, more than 30,000 Iowans chose to engage for the first time with the Iowa Food & Family Project (Iowa FFP). The infusion of interest brings the total audience to nearly 90,000 — and growing! “The increase in interest speaks to the quality of information we’re providing and the activities we’re conducting,” says Lindsey Foss, Iowa FFP coordinator. “It’s also a manifestation of the interest people have in knowing more about how food is grown and who’s growing it. “And it’s a reflection of our approach to how we’re sharing information about today’s farm and food system,” adds Foss. “We’re not preachy or confrontational and we don’t judge.” Instead, Foss says Iowa FFP invites people to have conversations and ask questions about all subjects related to food and farming — from labeling and organics to the use of cover crops and how a planter operates. “We have fun as we journey into agriculture together,” she adds. “And

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along the way, we encourage people to think holistically about the many ways food can be grown to the benefit of human health, the environment and the communities in which it’s grown.” During the past year, the Iowa FFP's audience numbers and level of engagement have grown dramatically: • Number of fans and followers of Iowa FFP across Facebook, Instagram, Twitter and Snapchat grew by more than 5,500 throughout the year — an increase of 38 percent. • More than 22,000 people opted in as new subscribers to the Iowa FFP’s e-newsletter, “Fresh Pickings.” Nearly 65,000 Iowans now receive the monthly communications that include fresh and easy-to-prepare recipes, farm family features, timely food news, unique insight into food trends and special offers provided by Iowa FFP partners including Jethro’s BBQ, Casey’s General Store, Hy-Vee and Machine Shed Restaurant.

• Traffic to the Iowa FFP website spiked during 2016, averaging more than 10,000 page views quarterly across 3,400 new site visitors. While increased awareness is important and a barometer of program interest, Foss says Iowa FFP’s ability to generate growth in consumer engagement and interaction with its content is even more encouraging. For example, average engagement on Iowa FFP Facebook posts is nearly 250 percent higher than one year ago, indicating increased interest and, not coincidentally, more page likes. Growing Iowa FFP engagement with Iowans is reflecting positively on their impressions of Iowa’s farm families and today’s agriculture. A survey of nearly 400 Iowans conducted earlier this winter by Research Now and Blue Compass Digital Marketing of Des Moines on behalf of Iowa FFP found that 87 percent of Iowans have a positive perception of today’s agriculture.

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Nearly 70 percent of respondents said they frequently think about how the food they purchase and enjoy is grown and raised. Demographics mattered and the opinions among age groups, education levels and household incomes did not follow conventional wisdom upon a closer inspection of the Consumer Pulse Survey findings. When asked if they sought out information on food labels, those holding a high school diploma as their highest level of formal education were more likely to say "Yes," compared to those with college or advanced degrees. When it came to questions asking respondents to rate “Strong Agreement” with the following questions — having a positive opinion of Iowa farming, thinking about how food is grown and raised, and feeling knowledgeable about Iowa farming and ag — those with the stronger agreement were in the 55+ and 18-34 age groups. The 35-54 age group appeared to be more moderate and neutral in their opinions about these questions.

The Consumer Pulse Survey also found that those familiar with the Iowa FFP were 17 percent more satisfied with the performance of Iowa agriculture than those not engaged. They were also significantly more confident that farmers: • Protect the air, water and soil (+24 percent more trusting than general Iowa population) • Do the right thing, regardless of financial benefit (+21 percent more trusting) • Contribute to the local community and economy (+14 percent more trusting than general Iowa population) “The combination of education, collaboration and participation is powering the significant and positive increases we’re experiencing in audience engagement,” Foss adds. “It’s an affirmation of our approach and why we’ll soon be announcing new partners who want to be involved in our outreach to Iowans about all things food, family and farming.”

Calendar of Activities Let's Grow Together April - September Powered by Earl May Nursery & Garden Center (digital, online)

Food & Farm Fiesta

Friday, May 5, 5-9 a.m. Machine Shed Restaurant, Urbandale Involving Machine Shed Restaurant, Iowa Beef Industry Council, Iowa Egg Council, Hy-Vee, Live Healthy Iowa, Earl May. If you can’t attend, be sure to listen in to a live broadcast hosted by WHO Radio’s (AM 1040) “Van & Bonnie”

Farmers Markets Spring - Summer Iowa Food & Family at the Des Moines Farmers Market (select Saturdays)

Food & Farming Fair Friday, July 14, 5-7:30 p.m. Jack Trice Stadium, Ames Farm Fair at Summer Iowa Games Athlete Jamboree & Opening Ceremonies

Iowa State Fair August 10-20 Food & Family Experience @ the Iowa State Fair. Lend a hand as we engage with nearly 250,000 fairgoers!

Expedition Farm Country III August 25-26 Two-day agricultural journey throughout southeast Iowa

Cristen Clark of Runnells is a farmer and blogger who shares recipes and stories about life on the farm with Iowa FFP's growing audience.

For more details about these events and others, go to iowafoodandfamily.com and follow along on Twitter and Facebook: @foodnfamilies

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A Farm Life Journal Mark Jackson of Rose Hill shares monthly farm diary By Carrie Laughlin

ringing farm fresh content to an audience of nearly 90,000 food minded Iowans is a priority of the Iowa Food & Family Project (Iowa FFP). Launched in 2011 by the Iowa Soybean Association (ISA) and now involving more than 30 farm and food retail partners, Iowa FFP empowers millennials to make more informed decisions about the food they enjoy. This is done by involving them in onfarm and food-prep activities, sharing recipes, acquainting them with farm families and today’s agriculture and connecting them with wellness experts courtesy of its presenting sponsorship of Live Healthy Iowa (livehealthyiowa.org). In January, Iowa FFP partnered with Mark Jackson, a grain and livestock farmer from Rose Hill and ISA director, to introduce “Farm Mark Jackson Life Journal.” The year-long diary authored monthly by Jackson chronicles all aspects of his life on the farm — from equipment repair, sustainability and budgeting for farm expenses and income, to more personal stories including the joys of farming with children and grandchildren and the antics

of his farm companions, “Murphy” his black lab and “Grumpy” the cat. The Farm Life Journal featuring a year-in-the-life of Jackson is being shared on iowafoodandfamily.com and across all Iowa FFP digital and social media platforms. ISA recently conversed with Jackson about his interest in telling his story and what he hopes to accomplish by sharing his unique perspectives with his non-farm neighbors.

What was your initial reaction to basically being asked to keep a diary that would be shared with the Iowa FFP audience? As a child, I loved listening to stories handed down and have grown to cherish my deep connection to agriculture. What better way to promote agriculture than to let my urban friends get a sense of what Iowa farmers do every day. Agriculture is a wonderful success story that is generations deep, but it needs to be shared. Consumer confidence is critical in a world filled with social media and reality TV, where emotions can often overshadow good science.

We’ve read your entries and know how busy you are. So how do you work this additional task into your day?

I’ve always enjoyed the art of writing and have told my family’s farm legacy in the form of a TED Talk. So finding the time to share my farming efforts is less of a chore and more of an exercise in stimulating the reader’s ‘mind’s eye.’ I have no lack of material to draw from with my daily tasks, so it’s more of a struggle to keep my writings concise and in a way readers can relate to.

Why is it important to make time for activities like the Farm Life Journal? Farming is a unique way of life, often misunderstood, but nevertheless a business where sustainability is critical for a healthy environment, a positive economic bottom line and as a solid partner to our friends and neighbors. Less than two percent of the U.S. population farms, so if readers can better understand what the farmer does and why we do it, then everyone and everything will benefit.

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Food, Farming Dialogue Blossoms Earl May, Iowa Food & Family partnership takes root to share ag story By Aaron Putze, APR

he many similarities between growing a food garden and managing a diversified row crop and livestock farm are explored and celebrated in a unique partnership launched this month involving Earl May Nursery & Garden Center and the Iowa Food & Family Project (Iowa FFP). “Let’s Grow Together” combines the expertise of Earl May staff and farmer Mark Jackson of Rose Hill to discuss and showcase a multitude of topics related to growing food. In addition, the Joe and Lynette Streck family host the development of a from-scratch garden on their acreage near Van Meter, adding context to Jackson and his family’s farm perspective. “Whether in backyard and patio gardens or on farms large and small, Iowa is an ideal place to grow food,” says Deanna Anderson, director of marketing for Earl May. “Our partnership with Iowa Food & Family is a natural one that empowers more people to garden and grow flowers. It also brings greater awareness of the dedication and ingenuity of Iowa’s farm families to put food on our tables.” Gardening is gaining popularity as an enjoyable and personally rewarding activity. An Iowa FFP survey earlier this year discovered nearly 50 percent of its participants have a backyard garden. In addition to enjoying homegrown fruits and vegetables, maintaining a garden is good exercise, reduces stress and provides an opportunity to unleash one’s creativity and ingenuity. But gardening is more than just a pleasurable experience. Those who grow food — whether on a quarter-acre or more than a thousand — will be the first to admit that getting soil under one’s fingernails teaches patience, dedication

and discipline. It also provides a unique perspective about the complexities of food production and a greater appreciation of where our food comes from. “Farmers and gardeners have a lot in common,” says Jackson, an active farmer-member and leader of the Iowa Soybean Association and “Let’s Grow Together” participant. “It takes hard work and perseverance to grow food. It also requires stewardship and lifelong learning as weather, pests and disease constantly surprise. Throughout the campaign, Earl May experts will serve up gardening tips and techniques, including planting, nurturing and harvesting garden produce, planting and caring

for fruit trees and establishing pollinator habitats; all while constructing a garden from scratch with the Joe and Lynette Streck family of Van Meter. Tips for nurturing a bountiful garden will be the perfect bridge for Jackson to share its many similarities to growing grain and raising livestock on their Mahaska County farm. Topics will include conservation and water quality, disease and pest management, planting and harvesting techniques and the importance of caring for nature and welcoming the next generation into the Jackson family’s farming operation. “Let’s Grow Together” will also offer an opportunity for food-minded Iowans to add their voice through interactive activities, contests and online conversations.

"Let's Grow Together" host Lynette Streck and daughters Maia, Jenna and Laura will plant a garden from scratch at their home near Van Meter. Their story and experiences will be paired with the farm life journey of soybean farmer Mark Jackson of Rose Hill.

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FATTEN UP YOUR DIET Soyfoods health benefits continue to grow. By Carrie Laughlin

o not fear fat. That has become this decade’s new diet motto after years of low-fat and low-calorie recipes and products dominated cookbooks and grocery store shelves. Before you start cooking all your vegetables in half a stick of butter or slather your toast with a whole avocado every morning, it’s important to understand which fats are most beneficial for heart health and your waistline. On-going research suggests diets high in omega-3 and omega-6 polyunsaturated fats can help reduce abdominal obesity, protect against inflammation and lower LDL-cholesterol. Stealing the spotlight recently has been omega-3 fats with

the rise in popularity of fish oil supplements, but evidence in support of the health benefits of omega-3 fat has never been as consistent as anticipated. Omega-6 fats, which are found in most oils, including soybean oil, have recently been shown to reduce heart disease risk (in the past, these fats were thought to cause inflammation). Soy Nutrition Institute Executive Director Mark Messina, Ph.D., says there is a misconception among many health professionals that omega-6 polyunsaturated fat is proinflammatory. “Loads of human data show this is absolutely not the case,” Messina says. “Increasingly, the evidence indicates that omega-6

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polyunsaturated fat lowers risk of coronary heart disease more than other types of fat.” Part of the explanation is that omega-6 fats reduce serum LDL-cholesterol and more importantly, the proinflammatory effects of omega-6 fats are not well established. Clinical studies from 2012 concluded that there is virtually no evidence that linoleic acid, the main dietary omega-6 fat, increases concentrations of inflammatory markers in healthy people. The harmful effects of saturated fat, which is often found in foods such as fatty beef, poultry with skin, butter and cheese, raise LDLcholesterol levels, but also LDL

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Edamame Salad

particle size. Large LDLs are less atherogenic, meaning they are less likely to promote fatty cell formation in the arteries, than small LDLs. However, studies clearly show replacing saturated fat with omega-6 polyunsaturated fat reduces coronary heart disease risk and mortality. “In some population studies saturated fat hasn't been found to increase risk of coronary heart disease,” Messina says. “One reason for that is often people consuming lower amounts of saturated fat also consumed higher amounts of refined carbohydrates and simple sugars. Replacing saturated fat with refined carbohydrates doesn't lower risk. Replacing saturated fat with carbohydrate from whole grains and from polyunsaturated fat does.” In addition to protecting against heart disease, intriguing new research suggests that polyunsaturated fats can also help combat the visceral fat inside the abdomen. Visceral fat, also known as organ fat or intraabdominal fat, appears to be harmful because it releases metabolic products directly into blood circulation and straight

to the liver. As a result, visceral fat cells that are enlarged with excess triglycerides — the main constituents of body fat in humans and animals — pour free fatty acids into the liver, which can lead to an assortment of health problems. Swedish researchers conducted a cross-sectional study that included nearly 4,000 60-year-old men and women and evidence suggests linoleic and alpha-linolenic acids, the latter being an omega-3 polyunsaturated fat, were not related to abdominal obesity. These new findings offer more support to replacing saturated fat with polyunsaturated fat for heart, weight and overall health management. Soybean oil and full-fat soyfoods are both excellent sources of linoleic and alpha-linolenic acid. Linda Funk, executive director of The Soyfoods Council, says getting the recommended 1-2 servings of soy a day shouldn’t be difficult, as the market has grown considerably in the last decade. “Soyfoods are so much more available than 15 or 16 years ago,” Funk says. “From soymilk and soynuts to edamame, canned soybeans, miso and meat alternatives, there is truly something for everyone. Whether you’re a meat-loving consumer, vegetarian or vegan, soy protein is the answer to healthy eating.”

GETTING THE RECOMMENDED 1-2 SERVINGS OF SOY A DAY SHOULDN’T BE DIFFICULT, AS THE MARKET HAS GROWN CONSIDERABLY IN THE LAST DECADE.

• 6 cups freshly chopped greens, washed and dried • ½ cup sliced radish • 1 medium julienne-cut red onion • 3 julienne-cut carrots • 2 cups halved grape tomatoes • 2 cups shelled edamame, blanched In a large bowl, add first 6 ingredients, toss lightly. Divide evenly on salad plates. Sprinkle with tofu croutons, serve with raspberry vinaigrette. Yield: 8-10 servings

Tofu Croutons • 12-ounces firm water-packed tofu, drained, cut medium-dice • ½ cup soy sauce • 1½ cup water • 2 tablespoons ranch dressing powdered seasoning mix • ¾ cup corn starch • Plenish™ high oleic oil for deep fat frying In a medium bowl, add soy sauce, water and ranch dressing powder, mix together. Add tofu, marinate 4 hours; remove from marinade, allow to drain. In a medium mixing bowl add corn starch, add tofu, toss lightly. Deep-fry at 350˚F in oil until goldenbrown. Remove from oil, drain. Serve immediately, sprinkle on salad.

Raspberry Vinaigrette • ½ cup raspberry vinegar • ¼ cup fresh raspberries • ¼ cup honey • ½ cup soy oil • ¼ cup extra-virgin olive oil • ½ cup fresh basil leaves, chiffonade • Salt and black pepper, to taste In a blender, add vinegar, raspberries and honey. Purée, slowly add oils to emulsify. In a small bowl, add dressing. Whisk in basil, salt and black pepper. Serve with salad. Chef John Andres, BOS Restaurant, Des Moines, IA

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LOWER RATES, LOWER YIELDS, HIGHER PROFITS? By Allison Arp

any farmers see a direct correlation between how much nitrogen they apply and how high their corn yields are, but does that correlation increase profits? According to data collected by the Iowa Soybean Association (ISA) On-Farm Network® — not always. In 2016, the On-Farm Network established 10 trials comparing farmers’ normal nitrogen rates to rates prescribed by the nitrogen modeling tool Climate FieldView Pro. To determine the prescribed rates, ISA researchers put farmer management data into the model and then ran mock applications until the nitrogen remaining at black-layer was predicted to be 0. “For the modeled rates, we wanted to get as close as possible to the point where it was predicted that we would have just enough nitrogen to get through the season,” says Anthony Martin, ISA regional agronomist for northeast Iowa. “For several of the

GET INVOLVED The ISA On-Farm Network is conducting similar nitrogen management trials during the 2017 growing season. Farmers interested in learning more about how their nitrogen application relates to profitability are encouraged to email research@iasoybeans.com for more information.

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trials, the modeled rates we gave to the farmer were met with skepticism, and rightfully so. We heard a lot of ‘this rate seems too low.’” With some reassurance, nearly all of the farmers followed the trial protocol comparing their usual rate to the rate prescribed by the model. All other aspects of field management were kept the same across the trial area. After harvest the On-Farm Network collected yield data, but that was only the start of the research. “After harvest data was collected it was pretty easy to determine which prescription had yielded higher, but that was really only half of the story,” Martin says. “We used the yield data, along with nitrogen costs and rates, to figure out which replication had been more profitable for the farmer.” The results were varied but one thing became clear, higher yields didn’t mean higher profits. Several farmers had lower yields in the areas applied with the modeled rate, but

because of the lower nitrogen costs they had higher profitability in those same areas. Other farmers saw the two different nitrogen rates yield the same, so the lower prescription had a much higher return-on-investment. While half of the farmer participants saw better or equal economics with the lower nitrogen rate, the research teams expected more farmers to have that experience. “Weather events throughout the 2016 growing season had an impact on our trial results,” Martin says. “Below normal spring rainfall combined with excessive summer rainfall created larger nitrogen demands and higherthan-normal yield potential. But this is a learning process and is why we conduct these trials.” Despite the weather problems that seem to come with every growing season, Iowa farmers are learning how to become more profitable, even if that means lower yields.

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Dan Shateh,

farmer near Elma

PLANNING OFFERS INSIGHT By Michelle Jones

armers rely on data from yield and profitability maps as well as advice from agronomists to enhance their operation. But what about using conservation planning to determine improvements? Conservation planning provides insight into several areas of a farming operation including nutrient management, soil conservation and wildlife habitat. Additionally, conservation planning is required to participate in federal cost-share programs. The Iowa Soybean Association (ISA) has an opportunity to develop conservation plans with farmers who are interested in Natural Resources Conservation Service (NRCS) programs, particularly the Conservation Stewardship Program (CSP). “There are real advantages of working with ISA on this project,” says Heath Ellison, operations manager of ag and natural resources. “For farmers interested in CSP, we’re going to help prepare you for that. You’re going to have a better understanding of what the program will mean for your operation, what changes or enhancements you may have to implement and what

thresholds you’re going to have to meet when it comes to soil, water, nutrient and pest management in order to get into the program.” Dan Shatek, a corn and soybean farmer from Elma, participated in conservation planning with ISA earlier this year. “I feel pretty strongly about passing our land to the next generation, so I wanted to protect the ground, the most valuable resource,” Shatek says. “That is what got me started. Another reason is I thought it may enlighten me to some practices that are available that I could use for my operation through EQIP [Environmental Quality Incentives Program] and CSP, etc.” According to Ellison and Shatek, the planning process is simple and straightforward. Ellison meets with the farmer, collects farm maps and records and examines the fields. Then, he uses NRCS tools and others to identify potential alternatives and improvements. Once complete, he meets with the farmer to discuss the results and potential options. “We’re going to assess soil erosion, we’re going to look at potential impacts on water quality, we’re going to review

the nutrient program and then we’ll do a series of georeferenced mapping,” says Ellison, a member of the ISA Environmental Programs and Services team. “We can use the mapping, particularly using some of the LIDAR data and the mapping we can do on top of that data, to really show the farmer a different perspective of the field.” Going through the process, Shatek learned about practices that address concerns on his farm. “It enlightened me to the variety of the EQIP and CSP practices that are available,” Shatek says. “I’m in the CSP program and some of the ideas presented when we talked I put to work in my CSP contract. I now use a nitrogen stabilizer and I use variable rate fertilizer applications.” The ISA conservation planning project is available to farmers statewide at no cost. Additionally, there is no obligation to enroll in CSP. For more information about the process, contact Heath Ellison at hellison@iasoybeans. com or 515-251-8640. “You know the old saying ‘We don’t inherit the Earth from our ancestors, we borrow it from our children?’” says Shatek. “Well with that in mind, saving the land is really important." S P R I N G 2 0 1 7 | I A S OY B E A N S . C O M | 2 7