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.
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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.
