President Tim Bardole, Rippey | At Large President Elect Jeff Jorgenson, Sidney | D7 Treasurer Dave Walton, Wilton | D6
February 2020 | Vol. 32, No. 5
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 Lindsay Greiner, Keota Larry Marek, Riverside Tom Oswald, Cleghorn April Hemmes, Hampton Staff Credits Editor | Ann Clinton Communications Director | Aaron Putze, APR 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
12 The House that Soy Built
Industrial home products rise to the top with soy as a biobased alternative.
16 Soles of Soy
Soybean oil supports eco-friendly, American-made footwear.
20 Biofuel Demand Heats Up
In the early 2000s — and still today soybean farmers need demand for soy oil to support soybean prices.
22 Biodiesel in the Big Apple To keep its
reputation as the city that never sleeps, New York City needs the fuel to keep it up and running.
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.
On the Cover: Soy is everywhere. From tractor tires to asphalt, the abundant and renewable resource offers a "greener" alternative, reducing the petroleum content in commercial and industrial products. Read about new uses for soybeans in this month's issue of the Iowa Soybean Review.
FEBRUARY 2020 | IASOYBEANS.COM | 3
Kirk Leeds Chief Executive Officer, Iowa Soybean Association kleeds@iasoybeans.com, Twitter @kirkleeds
No Gimmicks
L
ike you, I’m sure you get a lot of opportunities to join numerous community, civic and work-related organizations. Some you join, and others you decide to take a pass on as they don’t meet your interests or needs. As someone who has worked for a membership and trade association for more than three decades and served on countless boards and committees, trying to figure out why some people become members is critical. Why have some efforts succeeded while others disappointed? What causes someone to become a member? Are there certain features or benefits of membership that increase the likelihood that potential members become actual members? Are incentives and “freebies” necessary to gain members? Is it really about the price of becoming a member or something else? Are people afraid that if they join an organization, they will also have to give their time? Or are they apathetic, believing their decision to join (or not join) won’t make a difference?
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The Iowa Soybean Association (ISA) and its farmer board of directors have renewed their focus on membership growth for the organization. It’s central to our new strategic plan and “Driven To Deliver” brand promise. Increasing the number of farmers who believe in the work and value of the organization is a critical measurement of progress. In thinking about the questions raised, a couple of key thoughts emerged. ISA has had much success demonstrating real value to our members. We’ve seen significant increases in the participation of farmers across the state with more than 12,000 farmer members. Second, ISA has been very clear that becoming a member does not come with incentives and “freebies.” There are no gimmicks offered to incentivize farmers to become ISA members. We don’t offer discounts on travel, insurance or financial services. We don’t use free seed or chemicals to get you to join. There are no discount cards provided and no free books,
coffee cups or caps. What ISA does offer is a promise to deliver meaningful results for all of Iowa’s soybean farmers by helping farmers manage real issues, concerns and challenges. ISA is driven to deliver, and we welcome your membership and your support by becoming either a farmer member or advocate member. Farmer membership is open to all Iowa soybean farmers at no cost. You already pay the soybean checkoff so you’ve earned the right to become a member. For those who want to become even more engaged and support the activities of ISA that can’t be funded using checkoff dollars, we offer the opportunity to become an advocate member. Both memberships are important and come with our promise to listen to your concerns, work to find solutions and deliver results that are meaningful and impactful for you and your farm. To become a member of ISA, please visit our website at iasoybeans.com or drop me an email at kleeds@iasoybeans.com.
unitedsoybean.org
INVESTING IN NEW MARKETS FOR U.S. SOY
From promoting the profitability of using high-quality soybean meal in India to training animal producers on nutrition in Colombia, the soy checkoff is working behind the scenes to develop more market opportunities for U.S. soy. 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.
Michael Dolch Director of Public Affairs, Iowa Soybean Association MDolch@iasoybeans.com
Driven To Deliver
“D
riven To Deliver.” More than a column title, these three words honor the past, celebrate the present and embrace the future. “Driven To Deliver” is the Iowa Soybean Association’s (ISA) new brand promise. What’s a brand promise, you ask? Think of it this way. Considered one of the most powerful aspects of a brand experience, a promise is simple and inspiring. It answers the question of “What Do You Do for Whom?” That’s why it’s so important to pause, unpack and connect “Driven To Deliver” and ISA’s advocacy platform. The new brand promise is a launching pad, especially when considering market, trade and weather uncertainties. “Driven To Deliver” has triggered both a personal and organizational audit. Not in a money sense, per se – although one does occur every fiscal year – but rather, in a time, strength and importance way. It’s a call to assess what’s truly important to Iowa’s soybean farmers. By refocusing and prioritizing time, energy and resources on what we can and can’t control, we will find new and innovative ways to increase
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soybean demand, agricultural productivity and profitability. A month into Iowa’s legislative session, hundreds, if not thousands, of bills have been filed. Committee work is picking up in earnest. As these words fill the page, we’re staring down the first of two legislative funnels. A funnel is a legislatively imposed deadline that requires bills to pass one committee in either chamber to remain viable. With the first funnel just around the corner, committee activity will continue to ramp up and eventually give way to floor debate across the House and Senate chambers. Among ISA’s top priorities for the 2020 session is Governor Reynolds’ Invest in Iowa Act. By raising the state sales tax one penny or 1%, the Act would fund the Natural Resources and Outdoor Recreation Trust Fund, scaling up conservation and water quality efforts while bolstering mental health resources and significantly cutting income taxes. Now for the connection to our promise to you. Soybean farmers are “Driven To Deliver” greater productivity while strengthening the soil and improving water quality.
We know good things happen when we all work together. By partnering with public and private stakeholders, the ISA’s has successfully leveraged checkoff resources to drive the implementation of conservation practices benefitting all Iowans. Under Governor Reynolds’ leadership, Iowa has become a leader in nutrient management. It’s time to act and help solidify Iowa’s place at the forefront of conservation and nutrient management. The “Invest in Iowa Act” is just one example.“Driven To Deliver” is a perpetual call to action. Action that produces results well beyond tomorrow, next week, next year, or even the next decade. Much like ISA’s work to increase soybean demand through market development and new uses, the promise to Iowa’s soybean farmers will lead to greater influence over public policy and even stronger relationships with lawmakers. Looking to the future, I’m “Driven To Deliver” legislative and regulatory wins alongside Advocate and farmermembers alike.
Every Roundup Ready 2 Xtend® soybean variety in Beck’s lineup comes backed by a $4 Performance Plus discount, a 100% Free Replant guarantee, and the ability to add tangible value to your farm through Beck’s Commitment Rewards program. With the option to add varying levels of elite, proprietary seed treatments to fight nematodes, SDS, and white mold, farmers now have access to the number one soybean trait platform*, all at a low system cost. * Traited acres based on Bayer internal estimates. Roundup Ready 2 Xtend® is a trademark of Bayer Group. Performance may vary.
Schyler Bardole says working with the Coalition to Support Iowa’s Farmers helped his family grow and diversify their farm for future generations, which includes their son, Adam.
PLANNING FOR SUCCESS
S
chyler Bardole researched everything from crickets to buffalo to diversify his family’s soybean and corn farm near Rippey. Once he determined that raising pigs would be the best fit for his family, he knew the next step was to call the Coalition to Support Iowa’s Farmers (CSIF) to help him understand the rules and regulations that apply to raising livestock. He made the right call. “They were there every step of the way and were willing and able to provide the help and support we needed,” Bardole says. CSIF Senior Field Coordinator Kent Mowrer assisted the Bardole family in determining the best location for the barn. Using various models and webbased tools, Mowrer determined the site
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was suitable for raising pigs. The Coalition advised the Bardoles to communicate their plans for growth with their neighbors. CSIF also connected them with other contractors and resources that could help make their diversification dream a reality. Before the Bardole family’s barns were filled with 40-pound pigs to feed to market weight for Seaboard Foods, the Coalition hosted an open house on the farm so neighbors and others could see how pigs are raised today. Bardole is just one example of the more than 4,600 farmers the Coalition has assisted since its inception in 2004. It’s a joint partnership involving the Iowa Soybean Association, Iowa Beef Industry Council, Iowa Cattlemen’s Association, Iowa Corn Growers
BY BETHANY BARATTA
Association, Iowa Farm Bureau Federation, Iowa Pork Producers Association, Iowa Poultry Association, Iowa Turkey Federation and Midwest Dairy Association. It was created to help farmers grow their farms thoughtfully and responsibly. “Hope is not a strategy when it comes to livestock farming today,” says CSIF Executive Director Brian Waddingham. “You must have a plan.” CSIF staff are hearing from farmers early on in the planning stages. That’s been key in determining the right location, Waddingham says. Lately, CSIF staff have fielded calls from farmers interested in raising cattle under roof, adding hog barns and exploring the possibilities of raising shrimp and fish.
Raising cattle and calves under roof is an attractive option for farmers struggling to find pasture. In many cases, raising cattle under roof is more financially feasible in the long run, Waddingham says. Raising cattle under roof has led to increased performance among several herds, and farmers don’t have to fight the weather to feed and manage their livestock. During times of depressed commodity prices, farmers know that diversification can be a deciding factor in profitability. One way that farmers in Iowa have spread out risk is by growing pigs under contract with various integrators, just like the Bardole family decided. CSIF staff has fielded phone calls from farmers interested in adding hog barns to their farm. The ability to utilize manure from the barn on row crop acres helps offset some commercial fertilizer needs, Waddingham says.
your
Farmers are also looking at cattle and hogs a way to bring the next generation back to the farm, he says. Lately, CSIF staff are also hearing from families interested in growing fish and shrimp. “They want to know about the opportunities in the state, what regulations apply to growing them, and they want to make sure the sites they’re thinking about growing them in are suitable,” Waddingham says. In some cases, farmers want to know how fish and shrimp could be raised in conjunction with growing lettuce in an aquaponics system. This can be a viable option for farmers interested in diversifying their farm but wanting to start small, Waddingham says. Scales and tails aren’t the only reason farmers are calling the Coalition. They also want to learn more about the Coalition’s Green
Farmstead Partner program. It connects farmers with landscape professionals to decide how they can benefit from adding trees and shrubs to their farm. The Bardole family is working with the program to add vegetative buffers to their farm. “In addition to realizing the benefits that shrubs and trees can provide to a livestock farm, they also show a farmer's commitment to being a good neighbor,” Waddingham says. “I recommend that anyone who plans to expand or add a barn to call the Coalition,” Bardole says. “Their job is to help producers expand in a way that’s responsible. They help you get it right.” Interested in adding livestock or trees to your farm? Call the Coalition at 800-932-2436. Contact Bethany Baratta at bbaratta@iasoybeans.com.
cooperative
soybean processor
www.agp.com
2020 Leadership Awards The Iowa Soybean Association (ISA) recognized soybean industry leaders recently at the annual ISA awards banquet in Des Moines. Sponsored by West Bank, the 2020 Leadership Awards Banquet recognized seasoned farmers, industry partners and up-and-coming leaders who have gone above and beyond to serve and support soybean farmers and the agriculture industry.
Sponsored by Bayer
The ISA Leadership Awards are open for nominations each year and winners are selected by a panel of ISA farmer leaders. For more information about the awards program and the 2020 recipients, visit iasoybeans.com.
Sponsored by Agri Drain
Sponsored by Cargill
Sponsored by Farm Credit Services of America
Sponsored by John Deere
Sponsored by Stine
10 | FEBRUARY 2020 | IASOYBEANS.COM
Sponsored by Corteva
DRIVEN TO DELIVER The Iowa Soybean Association is
Driven To Deliver increased soybean demand through market development and new uses, farmerfocused research, timely information and know-how and policy initiatives enabling farmers and the industry to flourish.
Help us deliver more for your farm! Activate or validate your ISA farmer membership today at iasoybeans.com.
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Circle Only use blue and/or white. For more details check out our Brand Guidelines.
Funded by the soybean checkoff
FEBRUARY 2020 | IASOYBEANS.COM | 11
INVESTING CHECKOFF DOLLARS
The House That SOY Built INDUSTRIAL
H
igher performance, increased sustainability and lower cost — these
are just a few of the demands that today’s
HOME PRODUCTS
modern customers expect from the home
RISE TO THE
relying on petroleum or formaldehyde
TO P W I T H S OY
improvement industry. For companies in their products, this can seem like a challenging ask. But many find their sustainable solution in soy. “Choosing soy is a win-win,” says Lee
AS A BIOBASED
Walko, biobased business developer and
A LT E R N AT I V E .
Board (USB). “Corporate sustainability
12 | FEBRUARY 2020 | IASOYBEANS.COM
technical advisor to the United Soybean initiatives and consumer demand for safe
INVESTING CHECKOFF DOLLARS
products drive soy technology development
countless leading industrial product makers
to replace petrochemicals and other
to successfully introduce soy, replacing
additives.�
chemicals based in petroleum while
Although several biobased ingredients can appear as suitable replacements for
reducing volatile organic compounds. Soy has already proven successful in this
petrochemicals, manufacturers need the
segment, and many of the success stories
most cost-effective and highest-performing
can be found in and around the home. A
ingredients — which in many cases
growing list of large and small companies
presents an opportunity for soy. Not only
already implement soy in their products and
is soybean oil traditionally more affordable
reap the benefits of how effective it can be.
than canola or sunflower oil, its abundance
In fact, there are more than 1,000 soy-based
of C-18 links (e.g., linolenic acid) and its
products currently on the market, from
fatty-acid profile make soybean oil very
flooring and roofing products to candles
versatile. These qualities have allowed
and carpets.
FEBRUARY 2020 | IASOYBEANS.COM | 13
SEVERAL LEADING BIOBASED HOME PRODUCTS USING SOYBEANS INCLUDE:
SEALERS: Acri-Soy™
Soy-based sealers have a superior ability to penetrate and protect
PLYWOOD: PureBond®
a variety of porous substrate “Our customers want to know what they’re buying, how it was made,
A decade ago, the International Agency for Cancer Research
what it was made with
reclassified formaldehyde from a
a n d w h e r e i t ’ s f r o m ,”
suspect carcinogen to a known
s a y s To d d Vo g e l s i n g e r,
carcinogen. Plywood producers who used formaldehyde to bond wood
Products, which is a
support of USB, researchers developed
business utilizing soy in
that bonds wood naturally and tightly.
their PureBond plywood
Since 2005, the technology has
p r o d u c t s . “ We ’ r e p r o u d
spurred production of more than 100 million formaldehyde-free plywood
environmental footprint
formaldehyde panels.
w i t h U . S . s o y.”
Roof Maxx®
an integral bond and seal that allow the substrate to breathe while providing outstanding repellency. Because these sealers are nontoxic and high performing, they meet both consumer and producer needs.
to say we shrank our
panels at a price comparable to urea-
ROOFING PRODUCTS:
and grout. Biobased sealers create
with Columbia Forest
needed an alternative. With the a soy-based, formaldehyde-free resin
surfaces, such as concrete, wood
Roof Maxx is the first soy-based, roof-rejuvenating spray treatment that is formulated with natural soybean oil to penetrate roof materials. Developed by Battelle Labs, this application restores a roof’s flexibility and waterproofing protection, extending the life
the environmental concerns, it only
of a roof by up to 15 years and
makes sense to
reducing both the waste created
look at renewable
from disposing of an old roof and the waste generated by
r e s o u r c e s [ l i k e s oy ]
manufacturing new roof shingles.
t o ex t e n d t h e l i f e o f
Due to its incorporation of soy,
a n y t h i n g ,” s a y s R o o f
Roof Maxx provides a safe option for people, pets, property and the environment.
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“ To d a y, w i t h a l l
M a x x Te c h n o l o g i e s CEO Mike Feazel.
WOOD STAINS: Rust-Oleum®
“From a marketing standpoint, our p r o d u c t s g i ve a
Long used by the coating industry, soybean oil is now a hit in wood stains and finishes, including those produced by Rust-Oleum. The company’s Varathane® wood stains deliver in
beautiful finish, which is a byproduct of the s o y b e a n o i l ,” s a y s Jessica Bahn, brand
both sustainability and performance.
manager at Rust-
The soy-based stain line has seen its
Oleum. “The soybe an
products penetrate wood twice as deep as other products on the market due to the properties soybean oil brings to the stain. Soy’s hydrophobic nature also increases the water
oil is like the secret s a u c e . I t g i ve s a beautiful end result,
resistance of wood stains, making it a
and it’s easy to apply
great option for outdoor applications.
d u e t o t h e v i s c o s i t y.”
INSULATION: SPRAY FOAM POLYURETHANE INSULATION CONTAINS 14% RENEWABLE
Demilec Heatlok Soy 200 Plus® Environmentally friendly and energyefficient insulation is possible with the introduction of soy. Demilec Inc.’s closed-cell spray foam polyurethane insulation contains 14% renewable and recycled materials, which is appealing
AND RECYCLED
to homeowners. The insulation also
MATERIALS
a single application, saving both time
provides multiple control layers into and money in construction costs.
The United Soybean Board contributed to this story.
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Soles of Soy S OY B E A N O I L S U P P O R TS E CO - F R I E N D LY, M A D E - I N -A M E R I C A F O OT W E A R
T
he typical flip-flop sandal is like the straw of the footwear world. It’s used for a short amount of time and then tossed. But unlike the straw used to bed livestock that will decompose, discarded plastic and foam sandals are bound for oceans and landfills. One U.S. shoe manufacturer has designed a shoe to solve this issue — and soybean oil is a major part of the solution. Durable and 100% recyclable Okabashi sandals are 45% U.S. soy by weight. “Here at Okabashi Brands, we made the choice to go with a soy-based compound for our shoes because it aligns with our
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commitment to sustainability and manufacturing domestically,” says Okabashi President Kim Falkenhayn. According to the Georgia-based Okabashi — one of the remaining 2% of shoe manufacturers still operating domestically — less than 1% of shoes worn in the U.S. today are made in America. But just like any business, the solution must also make logistic and financial sense. The company says soybean oil checks all the boxes for the footwear’s needs, allowing them to switch from a petroleum-based product to a biobased product that fits their brand better.
BY LAUREN HOUSKA
“There are a couple of things that make soybean oil a good fit for our plasticizer,” Falkenhayn says. “For one, the addition of soybean oil helped the product meet all of our specifications — from softness to strength. On top of that, soy is grown on a large scale in the U.S. It’s available anytime we need it at any quantity we require.”
From farm to factory
April Hemmes, a soybean farmer from Hampton, says every little bit helps when it comes to driving demand for soybean oil. Hemmes is an ISA District 2 director and a director on United Soybean Board (USB).
“We’re entrusted to invest soybean checkoff dollars wisely,” Hemmes says. “So, while we still invest in tried and true markets, it is important that we also put dollars and resources toward new markets.” For example, she says, biodiesel would not be the major market it is now without the significant investment of checkoff dollars and promotional efforts. Finding more uses like this one is a top priority for USB, she asserts. “The versatile chemical composition of soybeans is driving a surge of soy technology,” Hemmes says. “Soybean oil is one of the most versatile natural oils, and I’m continuously surprised at how it can not only replace synthetic, less ecofriendly oils but it also can actually improve product performance.” The molecular structure and fattyacid profile of soybean oil allows it to be readily modified for many applications, like the plasticizer in Okabashi shoes.
Currently, 200 employees produce roughly 1.2 million pairs of flip-flops and sandals a year for three brands: • Okabashi, the flagship line, sold at drug stores and some specialty shops; • Oka-B, a higher-end line for boutiques and spas; and • Third Oak, currently available online and in select department stores. When the soles eventually do wear out, customers can ship them back (for a discount on a new purchase), and they’ll be recycled into new pairs. The company is pursuing an ambitious plan to increase sales across the company by 25% a year. To do so, the company must cater to a wider audience. Okabashi is a wellness brand with typical buyers over 40 years old and concerned about comfort and foot health, not necessarily sustainability. To attract Millennial customers, Okabashi launched its Third Oak line,
spotlighting a long-hidden virtue: Okabashi has been green since the get-go. “Just like a lot like farmers, sustainability is ingrained in our DNA,” Falkenhayn says. “It’s so much a part of what we do and how we think about design. It must work holistically with all our processes to make it work in the end.” Hemmes says soybean farmers can help companies like Okabashi reach sustainability goals from farm to factory. “Consumers, especially younger generations, truly care about where their products come from and how they are made,” she says. “Companies recognize that and have taken notice of how we are producing soybeans sustainably, and they want to utilize our product.” Contact Lauren Houska at lhouska@iasoybeans.com. The United Soybean Board contributed to this story.
“ T H E A D D I T I O N O F S OY B E A N O I L HELPED THE PRODUCT MEET ALL O F O U R S P E C I F I C AT I O N S — F R O M S O F T N E SS TO ST R E N GT H .” — Kim Falkenhayn, Okabashi President
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Prime MOTOR OIL N E W M OTO R O I L M A D E W I T H H I G H O L E I C S OY B E A N O I L N OW AVA I L A B L E O N A M A ZO N
A
merica’s drivers have a new choice that unites performance and sustainability at a competitive cost. Biosynthetic Technologies’ high-performing biobased synthetic motor oil, using high oleic soybean oil from soybeans grown by U.S. farmers, is now on commercial shelves. And if you have an Amazon account, it will be delivered right to your door in a matter of days. “Iowa is the leading soybean processing state, and it is important to have a diverse portfolio of products that soybean meal and oil can be made into,” says Grant Kimberley, director of market development for the Iowa Soybean Association. “Growing high value market opportunities in the industrial use area for soybean oil is important to farmers as it provides additional diversification for domestic soybean demand.” U.S. Department of Defense (DoD) and Washington, D.C.area fleet demonstrations found
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the product meets or exceeds their performance requirements. Biosynthetic Technologies’ motor oil is also recognized in the United States Department of Agriculture’s BioPreferred Program as a USDAcertified biobased product. The company markets both 5W-20 and 5W-30 through Amazon.com and direct from their website. The product is available for purchase and use immediately. The United Soybean Board (USB) and the U.S. Department of Agriculture have supported the soybased, drop-in synthetic alternative to petroleum-based motor oil. The biobased alternative is well-suited for high-temperature automotive and industrial applications. USB introduced the product to multiple Washington, D.C., region fleets, including DC Water, which fieldtested the motor oil. DC Water concluded the field test to be successful with the biobased motor oil, reporting strong performance, improved fuel efficiency and cleaner
engines when compared to the previously used petroleum-based oil. Three other Washington, D.C.area fleets also reported success with the biobased motor oil after participating in a trial. They included the Smithsonian Institution; Arlington County, Virginia; and Prince George’s County, Maryland. “At DC Water, we are always looking for innovative options that can help improve the sustainability of our fleet without sacrificing performance or increasing costs,” says Tim Fitzgerald, director of fleet management for DC Water. “This biobased motor oil exceeded our expectations in terms of performance and engine cleanliness. “The oil samples have shown increased longevity and stability over time while the equipment appears to be cleaner, which is a definite plus for us,” Fitzgerald continues. “The oil is biodegradable and less harmful to the environment. I see real potential for greater use of this biobased alternative in the future.”
The Defense Logistics Agency (DLA) Aviation, in coordination with the Air Force and the Office of the Assistant Secretary of Defense for Sustainment, conducted an 18-month limited field demonstration project to evaluate synthetic biobased motor oil in non-tactical Department of Defense and federal agency vehicles with gasoline-fueled engines. The effort included analysis of oil samples. They concluded: “The demonstrated biobased fullsynthetic motor oils were found to meet or exceed the DoD and federal agencies’ performance requirements.” Participants in the demonstration included:
• Air Force Bases: Fairchild, Luke, Malmstrom and Seymour Johnson • Army: Fort Irwin
Operations Squadron provided access to Air Force vehicles in various climates
• U.S. Postal Service
“We are extremely proud to launch our new line of high-performance motor oils manufactured with high oleic soybean oil from soybeans grown by U.S. farmers,” says Mark Miller, CEO at Biosynthetic Technologies. “Our motor oils are certified by the American Petroleum Institute, and not only do they reduce sludge and varnish, they improve fuel economy and provide environmental benefits for renewability and biodegradability as well.”
• The U.S. Air Force 441st Vehicle Support Chain
The United Soybean Board contributed to this story.
• Navy: Naval Air Station Lemoore • Department of Homeland Security: Federal Law Enforcement Training Center • National Aeronautics and Space Administration: Kennedy Space Center, Langley Research Center, Armstrong Flight Research Center and White Sands Test Facility
FEBRUARY 2020 | IASOYBEANS.COM | 19
Photo courtesy of the United Soybean Board
BIOFUEL Demand Heats Up I
n the early 2000s, soybean farmers needed demand for their soy oil to support soybean prices. The home heating oil industry in the Northeast needed to claw its way back into a market that natural gas was overpowering. Farmers and business owners, as it turns out, needed each other. The idea of blending biodiesel with home heating oil began in Paul Nazzaro’s home office with a few other biodiesel proponents. Nazzaro’s background in the oil industry and role as a petroleum liaison for the National Biodiesel Board helps him connect the industries. If you can put biodiesel in diesel engines, why can’t it be used to heat homes, they wondered? “When we started talking about this in 2003, it wasn’t a dream — it
20 | FEBRUARY 2020 | IASOYBEANS.COM
was building on an understanding of what the weaknesses were in the home heating market and how what you all had in the middle of the country could help them enjoy a renaissance,” Nazzaro says. He connected farmers and home heating oil business owners. and the two sectors began conversing. “As we explored this and looked at the particulars, we thought it could be really big, especially if New York would embrace a 2% blend,” says Greg Anderson, who was then the chairman of the Nebraska Soybean Board. “We weren’t really thinking of other blends like 5, 10, 50 to 100, but we knew if it was successful it would be a huge market for soybean oil.” Some farmers, including Anderson,
BY BETHANY BARATTA
flew to the Northeast to learn about the home heating oil industry. Some heating oil industry leaders flew to Nebraska, stepping their wingtip shoes on farms to learn about soybean production.
Meanwhile, in Massachusetts
About the same time, Charlie Uglietto faced competition from the natural gas industry, which branded the heating oil industry as antiquated and dirty. This threated his family’s business, Cubby Oil and Energy, which his father started in 1945. “We were losing market share,” says Uglietto, who recently took part in a National Biodiesel Board-arranged Big Apple Biodiesel Tour.
Nazzaro introduced him to Bioheat® Fuel, a blend of biodiesel and ultra-low-sulfur heating oil. It is a cleaner burning fuel, one that extends the life of heating equipment while reducing fossil fuel consumption. He was suspicious, just as soybean farmers were when Nazzaro brought the idea to the Nebraska Soybean Board, but he tried it. “I have a responsibility to my customers to make sure it works,” he says. “I can’t create problems for people who depend on us.” If it worked, the fuel could help differentiate the family-owned business in a shrinking market. He started with a 4% blend (B4), and it performed beautifully. Today, the company delivers Bioheat SuperPlus™, which contains 40% biodiesel (B40) to its 6100 accounts in the greater Boston area. Bioheat® Fuel usage is growing as states adopt mandates supporting net-zero carbon emission goals. Residents and business owners appreciate the fuel because it can be used in existing heating oil systems. It’s available in a variety of blends: 2% to 5% (Bioheat), 6% to 20% (Bioheat Plus™), and 21% and higher (Bioheat SuperPlus™). All the blends increase the demand for soybean oil. “It’s a win-win,” says Iowa Soybean Association President Tim Bardole, who took part in the trip to New York City. “These family businesses that supply heating oil to the communities and homes in the Northeast have to change what they do so they can be competitive in the green market." he says. “Biodiesel gives them the edge to meet the carbon requirements that are coming in the future. They definitely need biodiesel, and the soybean industry needs the business.”
Growing demand
Lofty carbon reduction goals mean greater demand for biodiesel to create Bioheat blends, Nazzaro says. In New York, which uses approximately 1 billion gallons of heating oil every winter, switching all heating oil to B50 Bioheat SuperPlus™ would demand about 500 million gallons of biodiesel. Soy-based biodiesel is the preferred choice because of its cold weather performance, Nazzaro says. Soybean farmers are ready to meet the demand from Bioheat, says Rob Shaffer, a farmer from El Paso, Illinois, and member of the American Soybean Association’s board of directors. “As long as we have the livestock industry to eat the soybean meal, then we’ll have plenty of oil,” Shaffer told home heating oil company representatives in New York City. The pairing of soybean farmers to the home heating oil industry is a perfect fit, says Donnell Rehagen, CEO of the National Biodiesel Board. “Farmers provide a wonderful product that we turn into what we call the best fuel on the planet (biodiesel). The heating oil industry has recognized the value,” Rehagen says. “Now is the perfect time for them to transition from a fossil fuel-based industry to a cleanburning industry.” Uglietto is testing blends of B50 in a few homes, including his own. He hopes to increase the blend levels his company offers in the future. “I hope we can take this to the next level,” he says. “As we’re going to higher levels, I feel better about what we sell and what we do every day.” Contact Bethany Baratta at bbaratta@iasoybeans.com.
Charlie Uglietto
“N OW I S T H E P E R F E C T TIME FOR THEM TO TRANSITION FROM A FOSSIL FUELBASED INDUSTRY TO A CLEAN-BURNING I N D U S T R Y.” — Donnell Rehagen, CEO of the National Biodiesel Board
Paul Nazzaro FEBRUARY 2020 | IASOYBEANS.COM | 21
BIODIESEL in the Big Apple T
o keep its reputation as the city that never sleeps, New York City needs the fuel to keep it up and running. For this, the city relies on biodiesel. “I could not get through every day of my work life if biodiesel wasn't effective,” says Keith Kerman, the city’s chief fleet officer. He manages a municipal fleet of 30,000 vehicles, the largest municipal fleet in the U.S. The city began using biodiesel in 2005. Since then, the city has expanded its use of the homegrown fuel. Just in the last seven years, the city has used about 105 million blended gallons of biodiesel in its on- and off-road vehicles and equipment. “We pursue biofuels because as a practical matter it can lower emissions,
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and it’s a sustainable and renewable source of energy,” Kerman says. “New York City is reducing emissions and supporting America’s farmers; it’s a great partnership.” The city uses 5% biodiesel blends (B5) in the winter and B20 the rest of the year. With the city and statewide push for lowering carbon emissions significantly, Kerman understands that increasing its blends of biodiesel will help them reach their goals. “We are now on the cusp of biodiesel being a blend to being the product,” Kerman says. “We were the first city to use biodiesel in its fleet in a big way, but we want to be first in fleet at B20.” That presents a tremendous opportunity for biodiesel and U.S.
BY BETHANY BARATTA
soybean farmers, says Iowa Soybean Association President Tim Bardole. “It doesn’t matter if we are selling our products to New York City or to Beijing, we have to sell our product,” says Bardole, who farms near Rippey. “We need to get soybean prices back up so they are profitable to grow.” Demand for soybean oil, which makes up about 50% of the biodiesel produced in the U.S., has helped support soybean prices. On average, biodiesel adds $1 to every bushel of soybeans grown on farms in Iowa and the U.S. Soybean oil prices have increased more than three-fold, growing from 7 cents per pound to 23 cents per pound due to growing demand for soybean oil for use in biodiesel.
Carbon reduction goals
Carbon reduction goals for the city and state are helping push higher blends of biodiesel, says Eric Dorcean, associate deputy commissioner for fleet services at New York City’s Department of Transportation (DOT). “It’s all about reducing greenhouse gas emissions,” Dorcean says. “Initially, there was a little bit of fear in using biodiesel, but we’re putting more and more of it in our fleet.” Among the department’s jurisdiction: all five boroughs of New York, 26,000 miles of streets, “and pretty much everything that touches that—sidewalks, traffic lights, signs, etc.,” says Dan Malone, Deputy Chief of Vehicles and Equipment for the New York City DOT. The department is also solely responsible for clearing the snow in Times Square and its pedestrian plazas and greenways and working with other agencies to prepare for and host numerous events throughout the year. Times Square draws an estimated 50 million visitors per year, and it’s one of the world’s most visited tourist attractions. The DOT also owns and operates the Staten Island Ferry and supplies vehicles and equipment for its maintenance. Biodiesel hasn’t found its way into the fuel tanks of ferries yet, but research continues on the
best blends to make that happen. The goal within the city’s fleet department is to reduce emissions 50% by 2025 and 80% by 2035. Ideally, Dorcean says, the majority of the fleet would operate on electricity. But the department is also realistic, Kerman says. “We have an incredible amount of infrastructure that’s not going anywhere anytime soon, which uses diesel fuel,” Kerman says. “We have 10,000 fleet units that use diesel fuel. There aren’t electric options in design or concept yet for much of this type of equipment.” Running on 100% electricity isn’t feasible — at least yet, says John Huber, president of the National Oilheat Research Alliance. To do so, the U.S. would have to triple the amount of electricity made here and eliminate all coal, natural gas, etc. “We’re decades, maybe even hundreds of years away from doing that,” Huber says. Instead, fleets can use higher blends of biodiesel to help them reach their emissions goals, he says. “Consumers are starting to realize there are better products available to use, rather than petroleum and fossil fuels,” says Donnell Rehagen, CEO of the National Biodiesel Board. “That’s our sweet spot.”
New York City has used 410 million blended gallons of biodiesel in the last seven years to fuel its fleet and heat municipal buildings.
“FLEETS CAN USE HIGHER BLENDS OF BIODIESEL TO H E L P T H E M R E AC H THEIR EMISSIONS G OA L S . ” — John Huber, president
of the National Oilheat Research Alliance
Contact Bethany Baratta at bbaratta@iasoybeans.com.
Eric Dorcean, associate deputy commissioner for fleet services at New York City’s Department of Transportation, says the city has used biodiesel with great success. FEBRUARY 2020 | IASOYBEANS.COM | 23
High Hopes for HIGH OLEIC BY BETHANY BARATTA
The soybean industry expects to see a surge in acres of high oleic soybeans within the next few years as food companies and industrial processors pick up on the advantages of using the oil in its products. High oleic soybean oil was launched commercially in 2012 and approved for global use in December 2017. Since then, the oil has been a part of everything from snack foods to asphalt. Consumers enjoy the hearty-healthy qualities of the oil. It’s lower in saturated fat and contains three times the amount of beneficial monounsaturated fatty acids compared to many conventional vegetable oils. The Food and Drug Administration (FDA) says high oleic soybean oil, when used in moderation, can reduce the risk of coronary heart disease when replacing oils higher in saturated fats. Photo courtesy of the United Soybean Board
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High oleic soybean oil offers food companies increased functionality, including an extended fry life, increased stability and a more-preferred flavor profile over other oil options, according to John Jansen, vice president of oil strategy for the United Soybean Board (USB). “There’s nothing that rivals its stability and soy flavor,” Jansen says. There are about 550,000 acres of high oleic soybeans grown primarily in 13 states, Jansen says. The USB has set a goal of 16 million acres of high oleic soybeans grown in 2023 and 12 million acres by 2030. Jansen expects production to ramp up as demand for the oil increases through new products.
Industries note high oleic advantages
One such use is through a biobased asphalt, which Iowa State University researchers introduced last fall. High oleic soybean oil was used as a binding agent, replacing other more expensive, highly volatile products. The asphalt has been successful in various demonstrations throughout the country. If the product takes off as expected commercially, the asphalt product would demand 15 tons of soy oil per lane mile. Biosynthetic Technologies in Indiana recently announced an engine oil derived from high oleic Tom Oswald soybean oil. Research is also underway in using high oleic oil in detergents and surfactants. Other companies use high oleic soybean oil to create products like paint and lubricants because of its durability when exposed to high temperatures and high levels of friction, Jansen says.
Market-driven demand Growing markets and premiums could help grow the acres of high oleic soybeans raised in Iowa, says Grant Kimberley, director of market development for the Iowa Soybean Association (ISA). High oleic soybean growers currently receive a premium for growing the crop — anywhere from 40 cents to $1.50 per bushel — depending on whether the crop is conventional or non-GMO. “If we see the boost in demand that’s expected in the next few years, growing high oleic soybeans could become
more attractive to Iowa farmers,” Kimberley says. Tom Oswald, a past president for ISA and current USB director, says there are other factors to consider before growing high oleic soybeans. “Farmers need to think about it like growing seed beans,” says Oswald, who farms near Cleghorn. “They need to think about it in terms of contracts, proximity to delivery points and whether those elements have enough value to switch conventional acres to premiumdriven high oleic soybeans.” Farmers in Iowa and other states have found success growing high oleic beans, Oswald says. As farmers continue to grow the soybeans, and the full benefits of high oleic soybeans are realized, that will open up the doors for more farmers. “That broadens the market appeal and opens potentially more delivery points for farmers,” Oswald says. And when the demand for high oleic soybeans grows and provides greater incentives and benefits to farmers growing them, Oswald says he’ll consider growing high oleic on his farm. “All applicable value-added opportunities are on my radar,” Oswald says. “It’s important for farmers to have an open mind in thinking about how new developments in market channels might apply to our individual farms.” Contact Bethany Baratta at bbaratta@iasoybeans.com.
FEBRUARY 2020 | IASOYBEANS.COM | 25
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The Last Word Editor’s Notes by Ann Clinton aclinton@iasoybeans.com
Getting Away with Soy
S
o I’ve been thinking … do farmers really go on vacation? I know you leave the farm sometimes and travel with a suitcase. I know some of you have even ended up on a tropical island, donning a sweet tan on your arms and pale legs. But do you ever really get away from the farm? Is it always on your mind? I saw a musing on Twitter the other day from a wife who finally got her husband to go on vacation after a particularly tough year on their operation. She intended to create a reprieve from the daily grind and soak up some relief. The wife noted her husband, who wore a ball cap given to him by his crop adviser, spent most of his time actively seeking out other
farmers staying at the same resort. She said he quickly found new friends, and they talked about prices, crops and weather. She wondered how they even found each other. So I must know, is this a thing? Is there a farmer-radar you emit when you travel? Are you just magnetically drawn to each other? Or is that story just a fallacy and you can disconnect from your farm when you travel? My guess is that it’s somewhere in the middle, but I’d still like to know how the scenario plays out on your trips. We were focused on new uses for soybeans as we were putting together this issue of the Iowa Soybean Review (ISR). The truth is, we barely scratched the surface
when it comes to featuring all the products that include soy. There are just so many of them. Impressive, environmentallysound products are exciting to learn about and offer inspirational ways to increase demand for our soybean oil. The United Soybean Board works with scientists, innovators and businesses to implement soy into products. We reported on one particular product that sparked my imagination. On Page 16, we highlighted a shoe manufacturer that makes 100% recyclable sandals, utilizing 45% U.S. soy by weight. Our ISR photographer shot an image for the story of the flip-flops lying on a backdrop of soybeans. The picture reminds me of a sandy beach, and I can picture myself there, with my earth-friendly flip-flops beside me. Is there anyone else out there with my kind of vision? I’m anxious to hear about your adventures – or lack thereof if that’s the case. But, if you are headed somewhere warm, grab yourself a new pair of sandals made with soy. It will at least be a conversation starter when you are making friends with other farmers on vacation.
FEBRUARY 2020 | IASOYBEANS.COM | 27
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