INVESTING CHECKOFF DOLLARS
CULTIVATING CROPPORTUNITIES Soybean checkoff dollars fund research to build demand BY LAUREN HOUSKA
S
ometimes to make money, you have to spend money. That’s why the United Soybean Board (USB) and the Iowa Soybean Association (ISA) have invested checkoff dollars in innovative research projects that yield more demand for U.S. soybeans. In turn, annual revenue has nearly quadrupled for U.S. soy farmers over the last 25 years. “Farmers are experts at producing soybeans,” says USB’s CEO Polly Ruhland. “While they take care of business on the farm, we’re taking care of business further down the supply chain, creating these so-called cropportunities.” Some are already well-known, from feed to fuel to food. Dave Walton, ISA District 6 director, says Iowa’s livestock and biodiesel industries are vital to creating demand for both oil and meal. Iowa is the leading biodieselproducing state, manufacturing about 285 million gallons each year. The
12 | FEBRUARY 2019 | IASOYBEANS.COM
clean-burning fuel helped soybean farmers realize an average of $36 per acre in additional value from 2007 to 2015. At the same time, it helped lower the cost of soybean meal for livestock producers. “The livestock industry is our primary customer,” says Walton, who farms near Wilton. “That demand is critical to U.S. soybean farmers.” Animal agriculture consumed 31.2 million tons of soybean meal — a 1.3 billion-bushel equivalent — during the 2016/17 marketing year. Iowa livestock producers — primarily pig farmers — utilized more than 2.9 million tons of that total.
The toil over oil Although it is well-known that U.S. soybeans help power the livestock and biodiesel industries, other cropportunities work their magic behind the scenes. From shoes
to sealants and tires to tractor parts, soybeans are being put to work in more ways than ever before. “Any time the industry uses more of the soybean, farmers, companies and consumers are all in a better economic position and creating less waste,” Walton says. However, these non-food and nonbiodiesel cropportunities are harder to come by and take longer to bring to market compared to soybean meal. “The business environment around soy is constantly changing,” Ruhland says. “I cannot stress enough the importance of finding new revenue
