Iowa Soybean Review, December 2019

Page 1

IOWA

SOYBEANreview

®

December 2019

SEASONS GREETINGS

FROM THE IOWA SOYBEAN ASSOCIATION


PEACE BEGINS

WITH FOOD


President Tim Bardole, Rippey | At Large President Elect Jeff Jorgenson, Sidney | D7 Treasurer Dave Walton, Wilton | D6

December 2019 | Vol. 32, No. 3

Secretary Robb Ewoldt, Blue Grass | D6 Executive Committee Randy Miller, Lacona | D8 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 Jeff Frank, Auburn | 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 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 Delbert Christensen, Audubon Larry Marek, Riverside Tom Oswald, Cleghorn April Hemmes, Hampton Staff Credits Editor | Ann Clinton Communications Director | Aaron Putze, APR Senior Creative Manager | Ashton Boles Photographer | Joseph L. Murphy Staff Writer | Bethany Baratta Staff Writer | Carol Brown Staff Writer | Lauren Houska Staff 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.

14 A Better Bean

Each year, farmers strive to grow a bigger, better crop. Similarly, researchers work to find ways to enhance the existing crop and build a better bean.

20 Peace Begins with Food

Soybean Industry's ‘ProteinFirst’ Approach Most Effective Way to Feed World Sustainably.

22 Value-Added Opportunity

Soy processor adds value to Iowa soybeans.

24 A New Normal Iowa’s

climatologist discusses the closely intertwined sciences of climate and agriculture.

On the Cover: A fresh snow falls on a herd of cattle in rural Madison County. As the year wraps up, the Iowa Soybean Association wishes you and yours a peaceful holiday season.

DECEMBER 2019 | IASOYBEANS.COM | 3


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

Goodbye 2019

A

s we get ready to close the book on another year, I find many farmers saying “good riddance” to what has been a challenging year. After a wet fall in 2018, the challenges continued into the spring. There have been heavy rains, delayed planting, floods and acres that didn’t get planted at all. Although some parts of Iowa had decent weather to get harvest and fall work done, many of you had to deal with ongoing wet weather, including rain and snow. In addition to these weather issues, the market has been beset with uncertainties related to a new trade agreement with Mexico and Canada (USMCA), the ongoing trade war with China and reduction in demand for biofuels given the administration’s decision to grant a significant number of exemptions for small refiners. As I write this column, we remain hopeful Congress will soon move USMCA forward. We want China and the United States to at least agree to set aside the tariffs and counter-tariffs that have been so damaging to Iowa soybean farmers and all of agriculture. But even with these challenges, there are still many things to be thankful for as we reflect on the past 12 months.

4 | DECEMBER 2019 | IASOYBEANS.COM

1. Although certainly not a record year, the Iowa and U.S. soybean crop is still large and better than many farmers had thought possible earlier in the growing season. 2. With the investment of additional checkoff and federal dollars, we have seen an increase in the export of U.S. soybeans to many countries and regions around the globe. We couldn’t make up for all the reductions in exports to China, but much progress was made. We remain hopeful some of these new and emerging markets will reduce our dependence on China in the years to come. 3. Partly due to reduced production and increased exports to nonChinese markets, we have seen a significant reduction in the projected carry-over stocks as we move into the new marketing year. The reduction in stocks has had some positive impact on soybean prices. 4. There is a growing understanding when it comes to reducing global hunger: the key challenge is providing high-quality protein to more consumers.

Soy is perfectly positioned to address this challenge when people consume soy protein directly or when soybeans are used to feed to livestock, poultry and fish. 5. Regardless of the short-term challenges, we know the longterm global demand for soybeans remains robust. The world needs more soybeans, and our job is to make sure Iowa and U.S. soybean farmers capture their share of this growth. 6. Finally, on the personal side, I am thankful that Kim, my wife of 39 years, has been cancer-free for the past nine months. She had a very difficult 12-month battle, but unlike too many others impacted by cancer, her battle was successful. I give thanks every day for the support we received from soybean friends in Iowa, across the country and around the globe. So, as we get ready to welcome 2020, my hope and prayer is that you take time to give thanks for the many blessings in your life, even amid struggles. I also wish you and your family the very best as we celebrate Christmas and the joy of that special birth so many years ago.


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Michael Dolch Director of Public Affairs, Iowa Soybean Association MDolch@iasoybeans.com

From Rows to Roads

L

ast month, we continued to push the fight. This month, we will see where the rubber meets the road — quite literally, as we explore the importance of biodiesel to the soybean farmer. As you’re well aware, soybean farmers’ entrepreneurial spirit and checkoff investment helped establish and grow the biodiesel industry. To spur additional growth, Congress in 2005 implemented a $1-per-gallon tax credit for U.S. fuel blenders who included biodiesel and renewable diesel into their fuel mix. Since then, the U.S. biodiesel market has grown from about 100 million gallons to more than 2.6 billion gallons annually. Today, soybean oil is the most commonly used feedstock in biodiesel, making up more than half of what is produced across the U.S. Biodiesel is also credited with adding between 63 and 90 cents a bushel to the price

Official Notice :

of soybeans. In short, biodiesel works for the soybean farmer. Unfortunately, this biodiesel tax credit — BTC for short — expired on Dec. 31, 2017, and has been in limbo ever since. Two years without the credit or any certainty about the future, biodiesel producers have been forced to purchase less feedstock, putting soybean farmers at a disadvantage. Slowing feedstock procurement was one thing. Stopping procurement altogether is another. Well, it’s happening now. Since the start of the year, 10 biodiesel producers have cut or shut down production entirely, due in part to the expired BTC. In a new report looking at the impact of the tax incentive, ABF Economics concluded that failure to provide the tax incentive with retroactivity (from the beginning of 2018 on) would lead to a reduction of the U.S. biodiesel industry and consequent loss of

jobs and economic activity. The report’s data shows that the tax incentive over the last three years has lifted biodiesel producers — and the soybean farmers who supply them — closer to or above the breakeven point. Armed with the findings, ISA Advocate Members and farmerleaders last month stormed the nation’s capital alongside nearly 100 National Biodiesel Board (NBB) members in the name of biodiesel. During the two-day meeting, farmers and biodiesel producers met with 88 Congressional offices to urge lawmakers to renew the BTC before year’s end. As you make the last pass in the field, I encourage you to do the same. Fire up the computer or pick up the phone and ask your elected officials to urge Congressional leadership to act now. It’s time to pass a multiyear extension of the BTC!

IOWA SOYBEAN ASSOCIATION ANNUAL MEETING Jan. 28, 2020

|

1:30 pm

|

Embassy Suites, Des Moines

All ISA Farmer and Advocate members who market more than 250 bushels of soybeans annually are invited to attend.

6 | DECEMBER 2019 | IASOYBEANS.COM


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.


THANK YOU TO OUR 2019 CORPORATE PARTNERS!

Iowa Soybean Association recognizes these industry stakeholders for their involvement and support in 2019. Their investment of time, talent and resources improves the competitiveness of Iowa soybean farmers and strengthens the association. Thank you. We look forward to continuing our important work in 2020 and beyond.

Presidential Partner

®

ADM | CHAMPION SEED | HERTZ FARM MANAGEMENT | INTL FC STONE | INDIGO JOHN DEERE | LANDUS COOPERATIVE | LATHEM HI-TECH SEEDS | RENEWABLE ENERGY GROUP RUETERS EQUIPMENT | STINE SEEDS | SUKUP | TITAN TIRE | WEST BANK

8 | DECEMBER 2019 | IASOYBEANS.COM


WHERE DNA MEETS ROI. Backed by superior agronomics and a wide range of herbicide tolerant traits, our soybeans are equipped with the strongest DNA in Pioneer history. Ask your local Pioneer sales representative how to maximize returns with our unrivaled soybean lineup. Pioneer.com/soybeans

PIONEER® brand products are provided subject to the terms and conditions of purchase which are part of the labeling and purchase documents. TM, ®, SM Trademarks and service marks of Dow AgroSciences, DuPont or Pioneer, and their affiliated companies or their respective owners. © 2019 CORTEVA. PION9SOYB064_FP

DECEMBER 2019 | IASOYBEANS.COM | 9


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


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DECEMBER 2019 | IASOYBEANS.COM | 11


Iowa Soybean Leader Appointed to National Post

I

owa farmer and past Iowa Soybean Association (ISA) President Lindsay Greiner has been newly-appointed to a threeyear term on the United Soybean Board (USB). Seventy-three farmer directors from across the country serve as USB directors. They oversee the proper implementation of soybean checkoff funding supporting research, market development and promotional efforts maximizing profit opportunities for all U.S. soybean farmers. “It’s an honor to be appointed to serve the soybean farmers of

your

not only Iowa, but the nation,” says Greiner. “I look forward to overseeing and contributing to projects that utilize our checkoff investment wisely.” Greiner was appointed by U.S. Secretary of Agriculture Sonny Perdue and will be sworn in during USB’s December meeting held in St. Louis. “My experience as ISA President has shown me the many valuable ways checkoff funds serve the farmer,” he says. “It is a privilege to continue that effort and momentum on the national level. I look forward to seeing a host of new soybean

uses to help with demand during these challenging economic times.” Greiner was elected to the ISA board in 2015, serving as president in 2018. He raises soybeans, corn and hogs.

Lindsay Greiner

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DECEMBER 2019 | IASOYBEANS.COM | 13


14 | DECEMBER 2019 | IASOYBEANS.COM


OIL: 19% soybean seed co age r mp e v os ’s a y iti da

on

PROTEIN: 34%

(essential & nonessential amino acids)

MEAL

SOLUBLE CARBOHYDRATES:

9%

INSOLUBLE CARBOHYDRATES:

To

21% (fiber)

ASH: 4% (minerals)

MOISTURE: 13%

Bean a bett er

BY BETHANY BARATTA

Will soybeans grown in the future contain more oil? More protein? Will this change how soybeans are grown on Iowa farms? What will global customers demand in soy products? Will customers pay a premium for these characteristics? We talk to the experts about what a future ‘better bean’ looks like.

DECEMBER 2019 | IASOYBEANS.COM | 15


INVESTING CHECKOFF DOLLARS

Building

Clayton Carley, ISU graduate student

A Bett er Bean

E

ach year, farmers strive to grow a bigger, better crop. Similarly, researchers work to find ways to enhance the existing crop and build a better bean. But what is a better bean? What makes it better? “It could mean so many different things,” says Danny Singh, Ph.D., a soybean breeder at Iowa State University (ISU). “How a consumer would define a perfect bean may not necessarily be a perfect bean for someone who is producing it.” A better bean, says Iowa Soybean Association (ISA) District 1 Director Brent Swart, contains a variety of characteristics. “The better bean in the farmer’s eyes probably looks more at traits, agronomics, yield and disease resistance,” says Swart, a farmer and Pioneer field agronomist near Spencer.

Improved beans Soybeans raised in Iowa are different than those raised 20 years ago, says Suzanne Shirbroun, ISA district 3 director from Farmersburg. Part of that is the advancement in seed treatments, she says. Suzanne and her husband Joe, operate a seed dealership and customize their seed treatments at their customers’ requests. 16 | DECEMBER 2019 | IASOYBEANS.COM

Seed treatments keep improving, Shirbroun says, requiring less need for chemical applications. “I’m putting a fraction of an ounce, in some cases, on a unit of about 140,000 seeds, or roughly 1 acre of seeds,” she says. “That’s less than I would have to apply via broadcast spraying or aerial applications.” The seed treatments have improved through research efforts, like those that Singh and his team are undertaking. Singh’s work through the Iowa Soybean Research Center at ISU is aimed at working toward a perfect bean through research, breeding and technology development. ISA is a major contributor to the center.

Research pipeline Singh and his team grow thousands of soybean research plots per year, looking at the performance of various traits and the impact of various stressors on soybean plant growth. The use of machine learning methodology also helps determine what

weather parameters are most influencing yield at different times of crop growth throughout the United States. “If we determine those important parameters, we can determine what causes yield reduction,” Singh says. “Then, we can put a genetic solution toward it.” Shirbroun understands that seed breeding takes time. History has shown that it’s worth the wait. In northeast Iowa, soils are wetter and cooler than in other areas of the state. In the past, farmers managed this by waiting until after Memorial Day to plant soybeans — tilling first. That’s changed, she says. “The vigor of soybean breeding has improved,” Shirbroun says. “We’re not as afraid to plant in April and no-till because we have soybeans that can deal with early-season situations.”

Systems approach Singh isn’t looking only to build a better bean. He wants to find better solutions to manage production challenges. Researchers are combining


INVESTING CHECKOFF DOLLARS

Megan Lund, ISU undergraduate field assistant

Danny Singh, Ph. D. Iowa State University

the use of robotics, sensors and drone imaging in an area called cyber-agricultural systems. “In doing so, we’re very strategic in being able to find where the problem is and being able to mitigate it, so these crop solutions have less chemical cost, less input, less soil compaction, less runoff and enhance profitability,” Singh says. They are working to speed up response rates to challenges found in the field, Singh says. “If we know three or four days in advance that a disease is going to come, smaller robotic units can take care of that issue to prevent it,” he says. In-field use of these technologies could be just a few years away, Singh says. His research team is driven by improving production with reduced input costs and the time and effort invested. “That’s the motivation behind it,” Singh says. “The perfect bean is not just one that provides a higher level of protein, oil or meal, but one that can be produced in a way that makes farmers profitable.” Contact Bethany Baratta at bbaratta@iasoybeans.com. DECEMBER 2019 | IASOYBEANS.COM | 17


INVESTING CHECKOFF DOLLARS

Gro wing

A Bett er Bean

“THEY SAY THE POT OF GOLD AT THE END OF THE RAINBOW IS WHEN

T

here are research and marketing opportunities surrounding the idea of a better bean, but farmers have perhaps one of the largest roles in this process: growing it. Iowa Soybean Association (ISA) District 5 Director Tom Vincent says growing a better bean could be an option if there’s an incentive to do so. He’s raised seed soybeans for several years near Perry and understands opportunity. “One of the reasons I became a seed bean grower was to get rewarded for a higher level of management,” Vincent says. He’s able to capture a $1-per-bushel premium to produce a clean, highquality bean with good germination and color. Other soybean farmers are growing non-GMO or food-grade soybeans to capture a premium. Currently, there aren’t incentives for raising soybeans with a higher protein or oil content. When there’s a market, farmers will respond, says ISA District 1 Director Brent Swart. “If the market makes it possible to factor those metrics into how

we get paid as farmers, that could change the face of what we do out here,” he says. Swart, a field agronomist and farmer near Spencer, says farmers are continually looking to grow a better bean. Challenges change from year to year — weed control, erratic weather patterns, pests and diseases — and sometimes hinder progress. But farmers adapt to these challenges. “Traits are helping us build a better bean from a disease, yield and agronomic standpoint,” Swart says. “Advancements are real and happening faster every year.” When the better bean is created and marketing opportunities offer promise for soybean farmers, ISA CEO Kirk Leeds says farmers will be ready to respond. “Farmers are pretty good at responding to market signals,” Leeds says. “They will provide whatever bean the customer wants, as long as it allows them to profit in the marketplace.” Contact Bethany Baratta at bbaratta@iasoybeans.com.

Tom Vincent of Perry

18 | DECEMBER 2019 | IASOYBEANS.COM

WE HAVE A BEAN THAT HAS MORE OIL AND MORE PROTEIN AND IMPROVED YIELD FOR FARMERS.” — KAREY CLAGHORN, USSECC


INVESTING CHECKOFF DOLLARS

quantify how much value U.S. soy could add to their business. The tool, which is being tested, could be shared with many end users soon.

Building relationships

Karey Claghorn, Sr. Director, Organizational Collaboration and Innovation, U.S. Soybean Export Council

Market ing

A Bett er Bean

I

nvesting in research and technology to produce a better bean is only fruitful if customers are willing to buy those soybeans. Without a market, all that’s left is a larger pile of soybeans. That’s where efforts of the Iowa Soybean Association (ISA) and U.S. Soybean Export Council (USSEC) team up. A perfect soybean in the eyes of global customers contains characteristics that enable farmers to sufficiently feed their livestock — everything from pigs to fish. For human consumption, a better bean contains characteristics essential in soyfood production and consumption. “They say the pot of gold at the end of the rainbow is when we have a bean that has more oil and more protein and improved yield for farmers,” says Karey Claghorn, senior director at USSEC and former chief operating officer at ISA. Farmers say they rely on ISA and USSEC in communicating the needs of customers. “ISA plays an important role in connecting the dots between research, producers, consumers and end users,” says Brent Swart, ISA District 1 director.

ISA has been a part of the conversation surrounding the idea of this ‘better bean.’ ISA organized a conference in Chicago in 2018, bringing together stakeholders from across the country to strategize on the best opportunities to profitably market a 5-billion-bushel U.S. crop. “Growth in demand both domestically and internationally is Kirk Leeds critical, and one of the ways to capture our share of this increased demand is to make sure we are delivering soybeans, and in some cases, ‘better beans’ than are currently available,” says ISA CEO Kirk Leeds. The first step is determining what customers want, Claghorn says. “I believe in the future we'll need a more adaptable marketing system that’s ready to supply end users with the unique product they want,” Claghorn says. She says there is a tool being developed that will help end users

Global customers recognize U.S. soy as a high-quality protein for livestock, poultry and aquaculture, Leeds points out. Soy protein is a leading provider of protein for direct human consumption. On the oil side, soybean farmers provide a product that is healthy, and sustainably and competitively produced. But the soybean industry must not rest on this reputation. There are opportunities to tap into additional markets and sell larger soybean supplies. ISA District 3 Director Suzanne Shirbroun of Farmersburg expects her checkoff investments to pay off in the form of soybean sales. “ISA and USSEC are my salespeople to the world, whether it’s to the hog farmer in North Carolina or Thailand,” she says. “We need to find customers, and we need to say, ‘Yes, we can produce this bean for you.’” Relationships will continue to be key in marketing soybeans — even better beans, Claghorn says. “Every country has different tastes and different market demands, so showing our customers that we can grow and deliver the products they want will help build demand for U.S. soy,” Claghorn says. Leeds is assured in the ability of ISA and USSEC to expand markets, and, in turn, deliver results to Iowa soybean farmers. “ISA has a long history of meeting the needs of customers in Iowa, across the country and around the world,” Leeds says. “I am confident we will continue to be able to deliver soybeans that meet the needs of our customers.” Contact Bethany Baratta at bbaratta@iasoybeans.com. DECEMBER 2019 | IASOYBEANS.COM | 19


INVESTING CHECKOFF DOLLARS

PEACE BEGINS

WITH FOOD

S OY B E A N I N D U ST RY ' S ‘ P R OT E I N - F I R ST ’ A P P R OAC H M O ST E F F E C T I V E WAY TO F E E D WO R L D S U STA I N A B LY BY AARON PUTZE, APR

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hile America’s farmers are competitive, the products they produce can be complementary to nourishing the entire global population – both developing and developed economies. In some areas of the world, populations facing economic challenges do not have a choice. And with those people in mind, organizations such as the United Soybean Board (USB) and the World Initiative for Soy in Human Health team up to help ensure that affordable high-quality protein, such as soy, has a place in their daily diets. That’s the take of the USB regarding protein and its place on the plate. It’s also the rallying cry of a new initiative unveiled by USB in October at the World Food Prize celebration held in Des Moines.

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“U.S. farmers understand that feeding the world falls primarily on their shoulders,” says Polly Ruhland, USB’s CEO. “That’s because protein is the foundation of a quality diet.” Conducted in partnership with the U.S. Soybean Export Council, American Soybean Association (ASA) and World Initiative for Soy in Human Health, the “Protein First” initiative reinforces the critical role U.S. soybeans play in attaining global food security. A reliable supply of high-quality protein, soybean leaders say, is a powerful source of nutrition for people, animals and economic growth. The subject is near and dear to Ruhland’s heart. The Eisenhower Fellow accepted USB’s top post in

2017 after almost seven years as CEO of the Cattlemen’s Beef Promotions and Research Board. “Soy is the ideal direct source of protein for people because it is readily available and sustainably produced,” says Ruhland. “It contributes to protein provided in many commonly consumed foods found in our local grocery stores as well as new dietary choices gaining popularity.” The initiative will communicate the benefits of U.S. soybeans as a complete plant protein. Containing an adequate proportion of each of the nine essential amino acids necessary in the human diet, it serves not only as a primary source for high-quality animal feed, but also a growing source of protein for people.


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Serving nutrient-dense food is the most effective and efficient way to feed the world, Ruhland adds. Production can readily keep pace with changes in protein demand driven by growing economies and personal affluence. “When society starts with a certain level of protein, such as soybeans, they move toward additional sources as their incomes rise, including consumption of more pork, beef, poultry and fish,” she says. “What’s great for farmers is that these are markets for soybeans, too.” While farmers often grow multiple protein-based foods (two of the most common are pigs and soybeans — or, “pork and beans,” for short), marketing and

branding efforts directed toward feed the world in a nutritious and sustainable manner is a call to action. consumers can sometimes turn “It’s something I take very competitive, and, at times, even seriously and is of intrinsic adversarial. importance to all U.S. soybean Ruhland rejects that philosophy. farmers,” says Heisdorffer, who “When it comes to protein recently harvested his 48th soybean choices, I’ve observed the crop. “Soy is part of the larger conversation subtly erode from solution to nourish our population.” speaking to the benefits of all protein He says he awakens each day to focus on an alleged competition wanting to be part of the food between plant and animal proteins,” security solution. she says. “In the This commitment grand scheme was forged of things, this from travels to isn’t a contest countries where at all. When all he observed soy proteins are part protein fed to of a balanced school children. diet and work It was their most collaboratively to Polly Ruhland significant source nourish the world, of nourishment. everyone wins.” “It gives me pride to produce For the Protein First initiative to something in Iowa that’s used reach its full potential, farmers must throughout the world and that look and think beyond domestic contributes to better and more markets and marketing. productive societies,” says U.S. citizens, for example, can Heisdorffer, who serves as chair of choose from many different protein the ASA's board of directors. “Peace sources. This creates competition is achieved through agriculture and and that competition can morph into access to food.” pitting one protein against another. Whether derived from animals But internationally, many people or plants, high-quality and nutrientdon’t have a choice. dense protein is a winner. Soy is a “They must use protein they can leader in its field. It’s a complete afford or that is readily available,” plant protein that serves not only Ruhland says. “Therefore, it’s best to as a primary source for high-quality provide all kinds of proteins. We want people around the world to have access animal feed, but also a growing direct source of protein for people. to the protein they need and want.” The versatility and availability Achieving such a lofty goal of soy is welcomed news to Sun will take collaboration between Chanthol, Cambodia’s Minister of animal- and plant-based proteins. Public Works and Transportation and Ruhland says that by working World Food Prize attendee. together, farmers can answer the Delivering protein in all its forms many critical challenges facing the to those in need is foundational to a world. They include nourished more civil and productive world, he versus malnourished, environmental says emphatically. improvement versus degradation “You can talk about human rights and creating confident customers vs. ‘til the cows come home. But no one doubtful ones. will listen if there is not enough food For John Heisdorffer, the Protein to eat. Peace begins with food.” First initiative is more than just words on paper. The farmer from Contact Aaron Putze at aputze@iasoybeans.com. Keota, said the opportunity to DECEMBER 2019 | IASOYBEANS.COM | 21


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VALUE-ADDED

OPPORTUNITY S OY P R O C E SS O R A D DS VA LU E TO I OWA S OY B E A N S BY BETHANY BARATTA

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hen CHS Inc. announced plans to close its soybean crushing facility in Creston, it was the perfect opportunity for Michigan-based Zeeland Farm Services, Inc. (ZFS) to expand into Iowa. “When this became an opportunity, it fit right in, plus it gave us another footprint farther west in Iowa,” says Eric Meeuwsen, the plant’s general manager. In April 2018, ZFS announced its purchase of the plant, a soybean processing facility, soy flour mill, grain elevator and non-GMO soybean inventories. The business now operates as ZFS Creston, LLC. Founded in 1950 as Meeuwsen Produce and Grain, ZFS began primarily as a produce transportation company, and over the years evolved to include many other agricultural services. In 22 | DECEMBER 2019 | IASOYBEANS.COM

1996, the company expanded into soy processing when it opened Michigan’s first soy plant. The family-owned company also operates business units in grain storage and merchandising, feed ingredients, biofuels marketing, commodity exports and seed. Meeuwsen said the company saw potential in the Creston facility. “We looked at it as a similar-sized processing facility to the one we run in Michigan,” he says. “It’s the same technology and same type of customer base, so it fit into our business model.” Gavilon Grain, attached to the plant, provides both GMO and nonGMO soybeans for the processor. ZFS processes those beans into soybean meal, soybean flakes and soybean flour for use in a variety of products. ZFS Creston

processes 800 tons of products per day. “We can make soybean meal for animal feed and soy flakes and flour that can be further processed into food products for human consumption,” Meeuwsen says. “Their customers are making frozen desserts and other products out of soy — things I didn’t know could be done,” says Iowa Soybean Association (ISA) District 8 Director Warren Bachman, who spoke with company officials during a presentation there this summer. ZFS Creston began production in August 2018 after building its customer base and re-establishing the plant’s connections to customers who had sought other business opportunities after CHS closed. “It’s a growing business, and plant


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capacity is ramping up as customer needs are being met,” Meeuwsen says. The attached white flaking system and flour mill are unique to the company’s Creston facility. This broadens the company’s client base, he says. “We had customers who needed the products, we just didn’t have a way to provide them,” Meeuwsen says. “This plant fit into our existing markets that we just couldn’t serve.” ZFS Creston serves local and global customers. Some products are provided to livestock farmers for their feed rations, while other products, including non-GMO varieties, are shipped to foreign markets for use in food products. Regardless of the end product, every component of the soybean is used. The crude soybean oil is sold to other refiners and other end users, who process it into biodiesel or vegetable oil. Crushed soybean hulls are often added back into feed rations as a fiber source. “We are adding value to the bean by separating it into its elements,” Meeuwsen says.

Local benefits ZFS Creston supports its local community through employment and value-added opportunities for soybean farmers.

The plant employs 52, and buys grain through Gavilon Grain in Creston. Gavilon buys both nonGMO and GMO soybeans from local growers. It provides a premium for soybean growers who raise non-GMO soybeans. “It helps the producer get more for their products if they’re growing non-GMO soybeans,” Meeuwsen says. “And it helps add value to each part of the chain.” Having a processor in the area helps balance the local supplies, says ISA District 7 Director Bill Shipley. His cousin ‘feeds’ the plant with non-GMO soybeans grown on his farm. “Because Gavilon offers a premium to non-GMO growers, there’s less competition and fewer supplies going into the other markets where I send my grain,” says Shipley, who lives in Nodaway, about 40 miles from the plant in Creston. Regardless of the type of soybeans being raised on nearby farms, the processing plant is beneficial, Shipley says. “It’s a way to add value to our soybeans,” Shipley says. “I don’t care if you’re raising GMO or non-GMO, this plant adds value. We need those kinds of opportunities out here.”

Testing soybean samples in the ZFS lab.

“I DON’T CARE IF YOU’RE RAISING GMO OR NON-GMO, THIS PLANT ADDS VALUE. WE NEED THOSE KINDS OF OPPORTUNITIES OUT HERE.” — BILL SHIPLEY, ISA DISTRICT 7 DIRECTOR

Contact Bethany Baratta at bbaratta@iasoybeans.com.

Rachael Schaefer, lab technician, runs quality tests on soybeans.

Production facility at ZFS.

Eric Meeuwsen at the Zeeland Farm Services, Inc. plant in Creston. DECEMBER 2019 | IASOYBEANS.COM | 23


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A

NEW

NORMAL

Justin Glisan, Ph. D.

I OWA’ S C L I M ATO LO G I ST D I S C U SS E S T H E C LO S E LY I N T E R T W I N E D S C I E N C E S O F C L I M AT E A N D AG R I C U LT U R E BY LAUREN HOUSKA

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top at any rural Midwest coop, coffee shop, gas station or community bank and weather will likely be a lively topic of conversation. For Justin Glisan, Ph.D., state climatologist within the Iowa Department of Agriculture and Land Stewardship, weather is much more than chit chat — it’s his passion. “I’ve always been interested in weather,” Glisan says. “This is my dream job.” As state climatologist, he compiles and processes Iowa climate data for research needs. This includes preparing the weekly weather summary for the Iowa Crop Progress and Condition Report and the monthly Iowa weather summary.

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The third person to ever hold the position, Glisan began his role as Iowa’s climatologist in May 2018. He was preceded by Harry Hillaker, who retired after three decades in the position. The first was Paul Waite, who was also on the job for nearly 30 years. “It is a longevity job, and no one day is the same as the previous day,” Glisan says. “I hope to be here for 30 years, much like my predecessors.” That 30-year mark is important when studying climate data. “Climatological normal” is the 30-year average of weather variables in a given location. Atmospheric scientists use it as a baseline to evaluate climate events and provide context for year-toyear variability.

Glisan sheds light on what “normal” really means when it comes to weather in Iowa, how weather patterns are changing, and how farmers are adapting.

Why choose to study Iowa weather? “Given the variability of weather we have seen in the last 100 years and the exciting weather patterns across Iowa, how could you not want to study it? Iowa is situated in the middle of a country that has varying topography and is flanked by two oceans. This setup brings every type of weather — sometimes all within 48 hours. Iowa is one of the only states in which its east and west borders are drawn out by rivers, making flooding a concern.


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Iowa also has farmers who are scientists — and farmers know weather. I really appreciate when farmers call me — I learn something each time. Matching up what they have seen over the decades with our observations and facts gives us an idea of where Iowa climate has been and where it’s moving.”

How is Iowa’s climate changing? “In the last 30 years we’ve seen an increase in surface and atmospheric temperatures across the Midwest and the country. A warmer atmosphere holds more water vapor. So, we now have increased rainfall and snowfall across the U.S. and an increase in rainfall events that drop several inches of rainfall in just a few hours. We’re also seeing a seasonal shift in rainfall, with more rainfall events right around the time farmers want to start fieldwork in the spring and fall — 2018 and 2019 are case in point. Being an agriculturally based state, my main interest is how farmers will be able to adapt and flourish. Given the increase of atmospheric temperatures and increases in rainfall, we have seen an expansion of the Corn Belt, moving north into Minnesota. If you look back into the 1800s, we were growing wheat in Iowa. But Iowa is built for row crops and farmers are intuitive and innovative. It will be very interesting to see how all of these things balance each other out.”

How are farmers adapting? “Farmers and ag-based groups want to be part of the solution in adapting to these changes. Agricultural practices have a huge impact on effectively adapting to this new normal. Cover crops, especially during the winter, help lock in moisture and reduce runoff — and farmers recognize the impact. Looking at the U.S. Census of Agriculture data from 2012 to 2017, we’ve seen an expansion of cover crop usage around 250%. Farmers are also using better edge-of-field practices to prevent runoff. Iowa soil is gold, so keeping it in Iowa is important. We are also putting together a package of ag-focused climatological tools farmers can use to make better predictive decisions moving into the next season — looking at planting dates, growing degree days, temperature ranges, precipitation amounts and meshing that with early freeze probabilities.”

What do you hope to bring to the role? “Even more collaboration. Within our regional counterparts, like the USDA Climate Hub in Ames, the Midwestern Regional Climate Center in Illinois and the other Midwest state climatologists, there are experts on many different things. Being in a collaborative endeavor with them helps me do my job better and we’re able to better serve our stakeholders. Another thing that is important to me is — the Community Collaborative Rain, Hail & Network — a civilian network of standard rain gauges that augments the National Weather Service (NWS) co-op stations in Iowa. Since I’ve started in this position, we’ve gotten about 140 new rain gauges across the state.”

What is your favorite part of the job?

Justin Glisan has added 140 new rain gauges across the state since he started.

“Being surrounded by Iowa’s history. It gives me goosebumps. These records detail the history of climate across our state and the current weather we are experiencing. Both have a profound impact on modern agriculture.” Contact Lauren Houska at lhouska@iasoybeans.com. DECEMBER 2019 | IASOYBEANS.COM | 25


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SPECIALTY SOYBEANS

CO N S I D E R A L L T H E C H A L L E N G E S BY SCOTT NELSON

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ignificant opportunities exist for farmers to grow and market

specialty soybeans. Food companies

Scott Nelson, ISA Director of Agronomy

and grain marketers are always looking for farmers to grow identity-preserved soybeans including non-GMO, high protein, food-grade and organic. By far, the biggest demand for premium soybeans is for non-gmo soybeans marketed to places like Japan, Taiwan, Indonesia, Vietnam, Thailand, Europe and South Korea. Premiums range for production of specialty soybeans and in 2019 many farmers are receiving a $1.50 premium per bushel for their non-gmo production. Consider the following topics when producing specialty soybeans.

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Timing One of the biggest pitfalls of raising premium soybeans is timing. Contractors usually announce their programs from early to late winter. This often occurs after farmers have already made seed and input purchases. If you think you might have interest in a premium soybean program, try to remain flexible in your crop input purchases until you can see what premium opportunities arise.

Controlling weeds Some farmers object to raising non-GMO soybeans due to fear that they cannot control weeds without non-selective herbicides (Liberty, glyphosate, dicamba, 2,4-D) and herbicide resistant traits. This may be true for some fields, but keep in mind that most weed control programs involving herbicideresistant traits depend heavily upon conventional chemistry. For example, optimum weed control involving non-selective herbicides requires a pre-emergence herbicide application along with a postemergence residual herbicide to control late emerging weeds. Given the dependence on conventional herbicides using herbicide resistant traits, many farmers find they can economically control weeds without non-selective herbicides. This is especially the case for farmers that invest in cover crops as they provide some weed suppression and simplify the weed spectrum.

Herbicide programs Carefully shop and plan conventional herbicide programs when growing non-GMO soybeans. Costs for a complete conventional

program could be higher than when producing soybeans with herbicide-resistant traits. While the development of new herbicide modes of action and weed seed destroyers portend a bright future for non-GMO soybeans, it will require at least five years for these new technologies to be realized.

Limited varieties Another challenge in raising specialty soybeans is a limited choice of varieties. Some seed companies offer high-yielding, nonGMO varieties while others do not. Research has indicated that some high-protein varieties of soybeans yield equivalent to conventional soybeans while there can be a yield penalty in other varieties. Farmers just beginning to grow specialty soybeans could limit the acres they contract until they become more comfortable with their variety choices. One benefit of growing specialty soybeans is that seed costs are often less compared to GMO-varieties.

Storage When raising specialty soybeans, especially non-GMO, grain harvester, truck and storage bin clean out is especially important. Loads of nonGMO soybeans can be rejected if a presence of GMO-soybeans is detected and grain marketers have different levels of purity they will accept.

ONE BENEFIT OF GROWING SPECIALTY SOYBEANS IS THAT SEED COSTS ARE OFTEN LESS COMPARED TO GMOVARIETIES.

Transportation Trucking specialty soybeans can be an additional cost in raising specialty soybeans. Carefully consider your time and trucking costs to the grain receiver to determine if a specialty contract is right for you.

While the premiums look attractive, remember that specialty soybeans require careful planning to be profitable. Visit soybeanpremiums.org to discover and learn about specialty soybean opportunities.

DECEMBER 2019 | IASOYBEANS.COM | 27


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BIODIESEL SETS SAIL

U. N . R U L E CO U L D I M P R OV E MARKET DEMAND BY KATIE JAMES

“A

vast, ye landlubber” might not be what the average soybean farmer thinks as they finish the last few rows of harvest. But with a new U.N.-imposed rule, those soybeans might end up fueling an ocean vessel across the sea. Starting Jan 1, 2020, all ocean vessels are required to reduce sulfur emissions from the current 3.5% to 0.5%. This rule is set by the International Maritime Organization (IMO) — the U.N.’s specialized agency that works toward preventing marine and atmospheric pollution. Part of

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a comprehensive effort to clean up shipping emissions worldwide, it aims to reduce sulfur emissions by 77% — or 8.5 million metric tons. Ships have two options to achieve this expectation — installing an exhaust gas cleaning system called a scrubber or changing fuels. “Most companies have hesitated to purchase a scrubber,” says Tom Brooks, general manager at Western Dubuque Biodiesel, a biodiesel processing facility in eastern Iowa. “Choosing an alternative fuel is more practical.”

That’s where homegrown, soybeanbased biodiesel comes in. Biodiesel provides cleaner air emissions, better lubricity, and similar horsepower, torque and mileage as diesel and requires no change of equipment or infrastructure. According to Brooks, to meet this new standard, shippers will likely go from a No. 4 diesel fuel to a No. 2, which he believes will be beneficial to the biodiesel industry. “A 5% blend with the No. 2 diesel option would create an annual demand for 2.7 billion gallons of biodiesel,” says Brooks.


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This amount is based on the 150-million-gallons-per-day demand for bunker fuel created through the shipping industry. Ships don’t have to blend biodiesel with their fuel choice to increase demand for the renewable fuel, Brooks says. He’s optimistic that a greater market demand on No. 2 diesel would also provide opportunities for the biodiesel industry. “This kind of demand on No. 2 diesel could lead to shortages or price hikes, making biodiesel much more attractive,” adds Brooks. “I’m expecting big impacts in coastal areas that will need to pull fuel from the Midwest to backfill the demand for over-the-road trucks and vehicles.” Coastal states like California, Oregon and Washington have

already taken similar emissionreducing measures that make biodiesel a viable fuel alternative. British Columbia is also meeting a lower carbon fuel standard. States on the East Coast have pioneered biodieselblended home heating oil — or bioheat. “Bioheat is replacing home heating oil on the East Coast,” says Brooks. “That’s what we hope happens with the ships, one way or another.” It’s not uncommon for these states and companies, who prioritize environmental sustainability, to go above and beyond what new regulations dictate, Brooks says. Some companies will expand their offerings of biodiesel-based products to cater to environmentally minded consumers. (Continued on page 30)

Mike Steenhoek, Soy Transportation Coalition Executive Director

BIODIESEL PROVIDES CLEANER AIR EMISSIONS, BETTER LUBRICITY AND SIMILAR HORSEPOWER, TORQUE AND MILEAGE AS DIESEL.

DECEMBER 2019 | IASOYBEANS.COM | 29


(Continued from page 29)

But, as with most environmentoriented rulemaking, the changes to adapt can be expensive at first, and sometimes remain that way long term. Mike Steenhoek, executive director of the Soy Transportation Coalition (STC), is always cautious when transportation costs increase. “The reality in farming is that transportation costs usually get put back on the farmer,” says Steenhoek. “The new IMO rule could lead to increased shipping costs. Rather than risk losing customers due to higher shipping rates, it’s common that companies place the cost burden on farmers

in the form of a wider basis.” Unlike many industries that are solely fuel consumers, soybean farmers are also fuel producers. Steenhoek says this new maritime rule is a testament to farmer diversification. “The fuel consumption side of the soybean industry – exports – could experience a cost increase,” he adds. “On the other hand, the fuel production side – biodiesel – could experience increased market opportunities. This underscores the virtue of diversifying our demand as an industry.” The cost of diesel is slated to increase by almost $4 per

gallon according to IHS Markit, a research firm with Argus Media. Brooks says the increase is an opportunity, as a higher cost of No. 2 diesel will offer biodiesel blends a larger market share. “If you remember a few years back, over-the-road fleets also had to lower their sulfur content, and to do that they went to No. 2 diesel,” he continues. “In return, we got cleaner air and a chance to have biodiesel fill this market with a lower-cost, environmentally friendly fuel option.” Contact Katie James at kjames@iasoybeans.com

Ships travel the Saigon River near Ho Chi Minh City in Vietnam. Beginning Jan. 1, 2020, all ocean vessels are required to reduce sulfur emissions.

UNLIKE MANY INDUSTRIES THAT ARE SOLELY FUEL CONSUMERS, SOYBEAN FARMERS ARE ALSO FUEL PRODUCERS. STEENHOEK SAYS THIS NEW MARITIME RULE IS A TESTAMENT TO FARMER DIVERSIFICATION. 30 | DECEMBER 2019 | IASOYBEANS.COM


The Last Word Editor’s Notes by Ann Clinton aclinton@iasoybeans.com

And That’s a Wrap

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hat. A. Year. I don’t believe in wishing time away or looking too far into the future. For the most part, I’m very intentional about embracing the present moment. There’s beauty in every season and lessons to be learned when times are tough. However, I’m ready for a little positive news to report to you good, farming people. I’ve spent some time looking back on the 2019 Iowa Soybean Review headlines, and it’s an impressive list of frustrations. Flooding, trade war, low prices, pests … you’ve weathered a lot. This year, I loved all the social media posts with pictures commemorating the last pass of harvest. So many of my farming friends celebrated conquering this crop with a sigh of relief that it was over. However, as harvest progress reports rolled in, my thoughts were with one particular farmer who didn’t get to see the bounty of his efforts realized this year. This past summer, our soybean family mourned the passing of Dean Coleman of Humboldt. The longtime ag leader died from injuries sustained in a farm-related accident. Dean was serving on the American Soybean Association’s (ASA) Board of Directors. He had previously been a director on the Iowa Soybean Association (ISA) board, serving as president, vice president, treasurer and at-large. He also chaired the ISA Supply and Demand, Public Affairs and

Information & Education committees. He was 62. You know those people in your life who are just good humans? The ones who are kind and thoughtful? Intelligent but humble? Well, that’s who Dean Coleman was to me. He was pure joy to know. I’ve struggled writing this particular column. I knew I wanted to include a tribute to Dean, but I didn’t know how to articulate my thoughts about his passing. I have resigned to the fact that no words will ever do justice to a man who was so awesome. I worked with Dean for almost two decades as he served as an ISA director. I personally witnessed Dean’s passion

for agriculture and his commitment to service. But most importantly, I admired his dedication to his wife Carol and sons Nick and Mike. I always looked forward to the latest stories about his grandkids … Dean loved those babies. My heart hurts for the Coleman family, especially this time of year when I know Dean’s presence will be deeply missed. Thanks for following along with me this year. Please keep those emails coming. I love the conversations this space has created with you guys. And please give some love to those around you as we walk into 2020 together.

In memory of Dean Coleman

DECEMBER 2019 | IASOYBEANS.COM | 31


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