Iowa Soybean Review | December 2021 by Iowa Soybean Association

IOWA

SOYBEAN December 2021

Year of Growth: Lessons of 2021

IOWA SOYBEAN REVIEW® | 1

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Executive Committee President Robb Ewoldt, Davenport | D6 President Elect Randy Miller, Lacona | D8 Treasurer Dave Walton, Wilton | D6

December 2021 | Vol. 34, No. 3

Secretary Suzanne Shirbroun, Farmersburg | D3 At-Large Director Jeff Frank, Auburn | D4

12 A Year of Growth

Challenges and opportunities provide lessons in 2021.

Harvest Destination Global impact dependent on timing.

American Soybean Association Board of Directors Morey Hill, Madrid Wayne Fredericks, Osage Brian Kemp, Sibley Jeff Jorgenson, Sidney Steph Essick, Dickens Dave Walton, Wilton

United Soybean Board of Directors Lindsay Greiner, Keota Tim Bardole, Rippey Tom Oswald, Cleghorn April Hemmes, Hampton

lead on developing f ree interactive online decisionmaking tools for farmers.

Iowa Soybean Review is published monthly 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 Ann Clinton at (515) 334-1026 or aclinton@iasoybeans.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.

Tools for the Trade ISA takes the

Tips

Seed Selection

The potential for high yields begins with choosing the right seed. On the Cover: A red barn in Cass County stands out after a fresh snowfall. All things considered, 2021 was a positive year for Iowa soybean farmers. However, there were some unexpected factors that resulted in lessons learned. Turn to page 12 to learn more about this year's challenges and opportunities. (Photo by Ann Clinton.)

IOWA SOYBEAN REVIEW® | 3

Executive Insights Kirk Leeds, ISA Chief Executive Off icer kleeds@iasoybeans.com

Traditions Matter

’m big on traditions. Celebrating

them rekindles memories that are special and significant. Traditions enable me to immediately recall earlier days and simpler times. They provide much-needed joy, peace and normalcy, all of which will be especially needed this Christmas. A fondness for simple traditions at the Leeds' home is rooted in my childhood. As one of 10 children, resources were scarce and spent wisely. Bling, lights and presents were limited. Christmas was about singing carols and gospel songs (Silent Night was a favorite), attending candlelight service, and enjoying great food, conversation and togetherness. Fast forward to today, and traditions remain more important than ever. My wife Kim and I have added a few, including an annual viewing of National Lampoon’s Christmas Vacation. Best of all, we have new members of the family to help us celebrate traditions with even greater joy and purpose (have I mentioned how great it is to be a grandpa?!). Traditions matter to the Iowa Soybean Association (ISA) because we’re a family, too. Like your farm and business, we succeed and face challenges together. We remember

4 | DECEMBER 2021 | IASOYBEANS.COM

Rosalie Dawn O'Brien, 3 months, and Easton Neal Leeds, 9 months

those who passed this year due to COVID. Our lives have been forever altered due to the pandemic. These are tough times. But Christmas is a timely reminder of what matters most in our lives. Our annual leadership awards are also an important tradition for ISA. Every January, we gather to recognize those who provide exemplary service to the association and soybean industry. We’ll do so again Tuesday, Jan. 25, when we gather in downtown Des Moines for the 2022 ISA Leadership Awards Banquet sponsored by West Bank. Recognition is due for the many ISA farmer volunteers offer so much of their time and talents to

advance the goals and mission of the association. Our program year that concluded in September was a banner one for ISA. A highlight was the addition of 1,120 new farmer members. Out of respect for our farmer leaders’ time, the association has a tradition of limiting their need to engage over the holidays. We expect a lot from our volunteers, so some “soybeanfree” days are especially welcomed this time of year. Gathering with family and friends for Christmas and New Year’s celebrations has taken on added importance. Be in the moment this holiday season. Enjoy good food and time with family. Sing loudly. Celebrate traditions and make new ones, too. Hug family members a bit tighter. Relish the chance to see Christmas through the eyes of children and grandchildren. Rest assured that ISA will hit the ground running in 2022, driven to deliver for Iowa soybean farmers. From the Leeds’ home to yours, Merry Christmas and best wishes for a prosperous New Year.

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IOWA SOYBEAN REVIEW® | 5

Recognizing 2021 Industry Partners of the Iowa Soybean Association Iowa Soybean Association recognizes these industry stakeholders for their involvement and support. Their investment of time, talent and resources improves the competitiveness of Iowa soybean farmers and strengthens the association. We look forward to continuing our important work in 2022 and beyond.

Presidential Partner

6 | DECEMBER 2021 | 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.

IOWA SOYBEAN REVIEW® | 7

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RESEARCHING A BETTER BEAN

Whether you’re dealing with drought, flood, heat or other climate-related stress, the soy checkoff is working behind the scenes to diversify U.S. soybean genetics and increase stress tolerance. 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

IOWA SOYBEAN REVIEW® | 9

On World Food Day and every day, WISHH’S strategic partners take local action.

Guatemalan Rotary Clubs - a WISHH Strategic Partner

Connect with WISHH www.wishh.org

WISHH is a program of the American Soybean Association and is funded in part by the United Soybean Board and state soybean board checkoff programs. 10 | DECEMBER 2021 | IASOYBEANS.COM

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WISHH is a program of the American Soybean Association and is funded in part by the United Soybean Board and state soybean board checkoff programs.

IOWA SOYBEAN REVIEW® | 11

A YEAR OF GROWTH Challenges and opportunities provide lessons in 2021 BY BETHANY BARATTA

ISA President Robb Ewoldt stands in a soybean f ield on his farm near Davenport.

12 | DECEMBER 2021 | IASOYBEANS.COM

y most accounts, 2021 was a positive year for Iowa soybean farmers. Higher prices expanded the profitability outlook for farmers, drought conditions improved, and the return to in-person activities and events brightened spirits. That’s not to say, however, that farmers didn’t see their share of challenges. Some farmers were forced to replant their crops due to frost. Replacement parts and supplies were hard to come by as the supply chain was pushed to its limits due to labor shortages and a COVID-19-forced economic shift from services to goods. Supply chain disruptions were then exacerbated by Hurricane Ida, which briefly closed the United States’ busiest conduit between soybean farmers and global customers.

Back to the Hill After more than a year of webbased meetings and conferences, the Iowa Soybean Association (ISA) resumed its in-person activities. A visit to Washington, D.C., to inform policymakers on ISA priorities, eight district meetings to update members on the association’s direction and ISA’s presence at the Iowa State Fair are just a handful of the ways ISA members came together in 2021. “Once I was able to hop on an airplane and head back to Washington, D.C., I felt like we were back,” says Robb Ewoldt, ISA president near Davenport. He was on one of the last flights out of Washington, D.C., in March 2020 after testifying before the Ag Committee about the impacts of the China-U.S.

trade war. Two days later, COVID-19 essentially forced the closure of inperson activities in Washington, D.C. As one of the first ag groups welcomed back to D.C. after a 16-month hiatus, Ewoldt and other ISA members visited with all six of Iowa’s elected representatives about various priorities, including transportation and infrastructure, inheritance taxes and stepped-up basis, trade, market access, and biofuels. More events are slated for 2022, including ISA’s Winter Soy Summit in January and ISA’s Innovation to Profit conference in February.

Crop success Heading into August, parts of Iowa were under a severe drought. The expectation was that yields would suffer as a result. But then the rain came. As farmers began harvest, they realized better yields than they expected — some even saw record soybean yields. Some call it luck, others say improved seed genetics. “When I went into harvest, I wasn’t that optimistic on having a great soybean yield,” Ewoldt says. But a 70-bushel-per-acre farm average proved otherwise. “It was a nice surprise,” he adds.

Prices and supplies Though soybean prices reached $16 per bushel in May, the cost of inputs closely followed its upward trajectory. Ewoldt locked in fertilizer supplies

in September at $700 per ton. As of November, prices nearly doubled, mirroring the rise in 2007-2008 amid gas shortages and supply chain disruptions. Despite locking in prices, farmers report they aren’t guaranteed the supplies they’ve confirmed for 2022.

A lesson in flexibility This year was a lesson in flexibility and patience, Ewoldt says. He adjusted his game plan in 2021. With higher soybean prices came the flexibility and economic opportunity to provide additional fungicide protection on his crops, thus building in some resiliency and pushing yields higher. With 2022 just one calendar page-flip away, he’s making plans for the next growing year. “From an equipment standpoint, I’m keeping a larger replacement of parts inventory on hand,” Ewoldt says. “Some of those things I would typically rely on my dealership to have, but that’s not so anymore." Supply chain disruptions have proven that patience is a virtue. “I’m being patient and ordering things well ahead of time,” he continues. “It made me think about other things I might need — we better be ordering it right now because we don’t know when it will show up.” Contact Bethany Baratta at bbaratta@iasoybeans.com.

“2021 was a lesson in flexibility and patience.” — Robb Ewoldt, ISA President and Farmer, Davenport

IOWA SOYBEAN REVIEW® | 13

2021 IMAGES OF REVIEW BY JOCLYN BUSHMAN

Pat Murken and Emery Davis shake hands in front of the 1913 cultipacker Murken gifted to Davis, a beginning farmer. B

Kris Langgaard’s son walks in the shadow of his father as the pair take care of chores on their Guthrie County farm. C

Scott County farmer Robb Ewoldt wholeheartedly stepped into the role of Iowa Soybean Association President in September.

Warren

Bachman calls the shots during his 60th harvest this fall. E

A combine

rolls out to harvest soybeans. F

Preston Grobe

sits on the back of his well-traveled pickup that looks over his fields near Avoca. G

Grant Woodley

stands in front of his farm’s rustic barn, which is home to horses, chickens, goats, sheep and dogs. H

Scot Bailey

admires his farm near Anita.

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IOWA SOYBEAN REVIEW® | 15

Scot Bailey, farmer near Anita

HARVEST DESTINATION Global impact dependent on timing

BY JOSEPH HOPPER

he record books will remember 2021 as a year of challenges, transitions and pleasant surprises for Iowa’s soybean farmers. Leading the good news is the soybean harvest — it’s projected to break records as the largest in state history at 611 million bushels at 61 bushels per acre (up 7 bushels per acre from 2020). Where will the extra soybeans go from here? Demand will be key. The relationship between soybean meal and oil, which are produced through the crushing process at an approximate volume ratio, is changing. Soy oil — which historically represented about 33% of the total value to crush — has reached near price parity with soy meal thanks in part to increased demand for renewable fuels and biodiesel. Mac Marshall, United Soybean Board vice president of market intelligence, calls the change a “paradigm shift.”

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“Oil drives domestic crush,” Marshall says. As domestic demand surges and with global production shortfalls across a lot of vegetable oils, the value of soy oil is creeping up, Marshall says. It’s incentivized additional crushing, which is helping drive down meal prices. Soybean meal is starting to become the byproduct of the crush. With soybean meal prices down roughly 20% for the calendar year, increased cost competitiveness has spurred early-season export strength. From Oct.1-28, exports for soy meal were 8% ahead of the five-year average. The declining meal price also represents some relief for the domestic animal agriculture sector. “It’s a critical feed ingredient, so

even with the surge in demand on the renewable energy side, it’s encouraging for the animal sector,” Marshall says. Scot Bailey, an Iowa Soybean Association (ISA) board member who farms near Anita, says increased demand for soy oil in the U.S. energy sector is exciting. He suggests soybean meal can be put to good use locally on farms, “Iowa has a lot of hogs, he says.” “We can utilize the extra production and get it used so we don’t end up with the prices crashing.” While whole soybean exports will likely recede from last year’s record, the 2021-2022 marketing year is shaping up to be a top-five volume export season based on early USDA projections.

“It’s worth noting our export pace for this season relative to last season is off last year’s pace, but we need to consider Hurricane Ida’s impact and the tight supplies heading into this marketing year,” Marshall says. “There weren’t a lot of beans in storage that were ready to hit export as soon as the year kicked off. I think those are important dynamics to keep in mind.” This year, a key challenge to U.S. exports is the timing of harvest in South America, which could narrow the U.S.’ export window. Grant Kimberley, ISA senior director of market development, says one of the important efforts of ISA — developing markets — makes a major difference in getting soybeans into the hands of international buyers. Looking to the current market year, he expects little change in the top customers of U.S. whole soybeans. “During the trade war, ISA, the U.S. Soybean Export Council (USSEC) and state soybean associations put time and money into growing markets in other places around the world,” Kimberley says. Kimberley says the efforts

have gained market share in other countries. “We’ll probably have to rely on that again this year if South America has another big crop. If we don’t get back to where we would like to be on the China export front, then we can hopefully gain a little extra in other countries around the world.” Even if South America does eat into the U.S. soybean export window, Marshall says the situation could still benefit Iowa farmers. “Last season, we had so much aggressive early selling, and there wasn’t the volume to continue shipping,” Marshall says. “Maybe with a slow start this year coupled with Brazil getting off to a strong start, there’s more opportunity to be a year-round supplier and a little bit more smoothness in the seasonality of our shipping of whole beans.” The 2021 harvest has brought some positivity for Iowa farmers like Bailey. Despite the good yields and good prices, farmers are already looking ahead to the challenges of rising costs of 2022. “It’s kind of a double-edged sword,” Bailey says. Contact Joseph Hopper at jhopper@iasoybeans.com.

Grant Kimberley (center), ISA senior director of market development

U.S. whole soybean exports in marketing year 2020-2021 1. CHINA 35.5 million metric tons (MMT) 2. MEXICO 4.9 MMT 3. EU 4.2 MMT 4. EGYPT 2.7 MMT 5. JAPAN 2.4 MMT 6. INDONESIA 2.3 MMT 7. TAIWAN 1.5 MMT 8. THAILAND 1.2 MMT 9. VIETNAM 1.1 MMT 10. BANGLADESH .9 MMT

IOWA SOYBEAN REVIEW® | 17

TOOLS FOR THE TRADE

Jack Boyer, Reinbeck, was instrumental in the development of the Cover Crop Simulator.

ISA takes lead developing online decision-making tools

BY KRISS NELSON

ince 2005, the Iowa Soybean Association (ISA) has worked with farmers to conduct replicated strip trials on various commercial products and traditional and emerging farm management practices. By 2011, data from thousands of trials had been accumulated. ISA turned the data into a free online database of anonymous trial results. As data continued to accumulate, ISA recognized the need to further maximize use of the data. Thus, the analytics team at ISA led by Peter Kyveryga, senior research scientist and director of analytics, was formed in 2013. “I saw more value to use the data to predict the probability that would determine the likelihood of a yield response with current crop market prices

18 | DECEMBER 2021 | IASOYBEANS.COM

and the cost to implement a treatment if it would fully pay for itself or produce a profit,” Kyveryga says. In 2018, together with Iowa State University researchers, the team launched its flagship interactive online tool: ISOFAST (Interactive Summaries of On-Farm Strip Trials). Since then, four more interactive tools have been added. They are on the ISA website under the “Research” tab.

Nothing compares The ISA tools are unique as they leverage an interactive online platform designed for information visualization and statistical and economic summarization to help farmers make more informed decisions.

They also aid in the communication of overlapping areas, including agronomy, conservation, economics and technology while addressing the complex nature of ag decisions, volatility in prices, input cost, crop productivity, weather and sustainability. Recently, Carroll County ISA farmermembers Ryan and Tarin Tiefenthaler sat down with ISA Conservation Aagronomist Joe Wuebker for a tutorial on using the interactive tools. “The access to all this information in one place is awesome,” says Tarin. They are now looking forward to using

the information to help plan for the 2022 growing season.

Cover Crop Simulator This user-provided input tool is designed for farmers, landowners, crop consultants and agronomists interested in measuring and weighing cover crops’ environmental, agronomic and economic outcomes through simulation of different scenarios. Jack Boyer, ISA farmer-member and veteran cover crop grower near Reinbeck, was called upon to provide feedback during the development of the Cover Crop Net Return Economic Simulator. “It really helped to allow farmers to review it — it made some of the aspects more realistic,” says Boyer. “Those that have experience with cover crops could see the real benefits and were able to make some judgments if the simulator would be effective.” Although Boyer has been raising cover crops for 11 years, he still finds the simulator beneficial and recommends beginners and those with similar experiences use the tool. “Even though producers may have decided what works for their operation, it can help quantify the results in discussions with other farmers,” he says. Ryan navigates the cover crop simulator with ease and plans on using it for his operation and to help his customers make cover crop management decisions. “It’s user-friendly and a useful sales tool,” he says.

ISOFAST ISOFAST provides a deeper understanding of agronomic and economic impacts to aid farmers and agronomists in decision-making based on more than 50 ISA on-farm studies in corn and soybeans. “It’s a great tool for farmers to compare and contrast different products,” Ryan Tiefenthaler says. “For winter research, while planning for next spring, this is a great tool to check out.” Soybean Variable Rate Planting Simulator Before flying solo, student pilots use a flight simulator. Why not use a similar approach when deciding whether to use soybean variable rate seeding? With three years of the user’s historical data, including historical soybean yield maps, seed cost and expected yield response, the tool simulates different variable planting rate scenarios to maximize return and minimize cost.

Vegetation Index Time Series Imagery Tool This tool communicates the differences between uncalibrated and calibrated aerial imagery sources collected by drone, satellite and airplanes. It also reports time series of

different imagery vegetation indices of crop canopy to identify with infield yield variability zones in corn and soybean and shows the correlation between yield and vegetation indices from the beginning to the end growing season. “Our goal is to combine the data from this research with the soybean quality research and create a farmerfriendly open-source platform for remote sensing and GIS-based agronomic and economic analyses agricultural and conservation community’s decision making,” says Kyveryga.

For the farmers, with thanks to the farmers ISA data analyst Suzanne Fey, acknowledges farmer participation makes their work possible, whether conducting a strip trial for ISOFAST or helping to develop the Cover Crop Net Return Economic Simulator. “We have committed farmers,” she says. “The only thing that makes it possible is working with farmers.”

Looking to the future The next generation of ISA tools will incorporate the direct collection of data and data sharing by and between farmers with data privacy preservation to identify crop production threats in real-time for practical applications. Contact Kriss Nelson at knelson@iasoybeans.com.

Soybean Quality Economic Simulator This tool allows for the simulation and visualization of potential economic returns from protein premium payments based on soybean quality. It also allows user input to adjust factors, such as soybean grain price, expected yield, yield change and premium payment amount.

ISA conservation agronomist, Joe Wuebker trains Ryan and Tarin Tiefenthaler, farmers f rom Carroll, on using the ISOFAST tool.

IOWA SOYBEAN REVIEW® | 19

SEED SELECTION TIPS The potential for high yields begins with choosing the right seed BY KRISS NELSON

eeds, insects, diseases and weather — whatever the battle may be, the best line of defense begins with seed selection. “This is probably the most important decision you are going to make to achieve good yields next year,” says Scott Nelson, senior field services program manager for the Iowa Soybean Association (ISA). Here are six considerations when making soybean seed selections for 2022.

1 // Climate variability. Combat the unpredictability of the weather, Nelson suggests planting a broad base of soybean varieties. “Having several varieties in your operation is important to buffer yourself against extreme weather that may come,” he says.

2 // Consider costs. If input costs Needto rise a subhead continue and commodity prices drop, some producers might look to a less expensive seed. But is that a wise decision? “Sometimes the most expensive seed a farmer buys are at the cheapest cost,” Nelson says. “Sometimes, the best seed deals aren’t the best for your farm.” Nelson advises understanding the farm’s production history, doing an economic analysis and finding a trusted advisor. “Farmers should have a few seed advisors or agronomists they trust and companies they want to do work with and depend on to help pick their products,” he says. “A good seed advisor is golden — but you don’t want to talk to just one.”

This is especially critical in soybean seed variety selection. “It is important to go through that exercise of placing products and understanding where this soybean fits on the farm versus just going to the local co-op and buying whatever is popular,” Nelson says.

3 // The fight against Soybean

Cyst Nematode. If you know your farm has a history of heavy Soybean Cyst Nematode (SCN) pressure or you have recently done fall soil sampling to find an SCN presence, find a soybean seed with the Peking resistance trait. “SCN is developing tolerance to the most common cyst resistance trait that has been on the market and that is PI88788,” Nelson says. “Peking is another type of resistance to SCN that affects its reproduction.”

Todd Thilges, farmer f rom West Bend.

20 | DECEMBER 2021 | IASOYBEANS.COM

Soybean Cyst Nematode (SCN)

White Mold

Sudden Death Syndrome (SDS)

Photos provided by Crop Protection Network

However, the issue with Peking is that it may not be available in a wide selection of varieties. “We don’t want to see producers put all their eggs in one basket with a few varieties,” Nelson says. “Do some soil testing, find out if those acres are infested with SCN and find a Peking resistant variety.”

4 // White mold. White mold, a disease that thrives in wet soil conditions, was an unexpected problem in Iowa’s soybean fields in 2021. “Place varieties with a greater tolerance to white mold on fields with a history of the disease,” Nelson says. “Some may be more tolerant than others — again, this is where a cheap seed can cost you.”

5 // Seed treatments. Inquire about a seed treatment package. They've become a popular way to help control Sudden Death Syndrome (SDS). “This is a devastating disease, especially in poorly drained soils,” says Nelson. There is often an insecticide portion to a seed treatment some producers may

want to consider helping control earlyseason insects like bean leaf beetles. “All seed treatments are not equal, so understand the value of the treatment,” he says. The necessity of a seed treatment varies on many circumstances, including timing of planting and seed populations. “If you are planting later, you may not need seed treatments,” says Nelson. “If you are considering dropping to a lower seed population, then you may need a seed treatment to help protect the lower stands.”

6 // Be selective when

adopting new herbicide traits. Consider the entire trait package of seed from resistance to pests, yield potential and the herbicide trait you prefer. “The newer herbicide traits may not have been bred yet for multi-pest resistance and stress tolerance,” says Nelson. Todd Thilges, an ISA farmer-member

from West Bend, said those rapid changes in herbicide traits has been a challenge when it comes to seed selection. “I feel like I am starting with new varieties every year — I don’t like doing so. It has been a struggle the last couple of years,” he says. At the top of his wish list is high-yielding traits with weed control and disease tolerance. “I first look at the herbicide trait package. We try to keep all our acres to a similar trait package to reduce chances of a herbicide application disaster,” says Thilges, adding the soil types and history of each field are also taken into consideration. Not only does Thilges depend heavily on his agronomist and seed companies for information, he conducts his is own research and seeks guidance from ISA trial results. “I look at trials from ISA. In the past, I have been part of trials myself,” he says. Contact Kriss Nelson at knelson@iasoybeans.com.

IOWA SOYBEAN REVIEW® | 21

S AVE M O N E Y WI T H 7 YEAR-END

TAX PLANNING TIPS BY DARCY MAULSBY

s the end of the year draws near, now’s the time for farmers to review current tax laws. As the Iowa Soybean Association works hard to ensure checkoff dollars are wisely invested, it’s imperative to maximize your other financial interests, as well. “So much has changed in the past year, from the way Paycheck Protection Program (PPP) loans impact tax returns to new rounds of Coronavirus Food Assistance Program (CFAP) payments,” says Kristine Tidgren, director of the Center for Agricultural Law and Taxation at Iowa State University. “Knowing more about these issues will help you ask better questions as you work with your tax preparer.”

22 | DECEMBER 2021 | IASOYBEANS.COM

1 // Taxation of COVID-19 relief

for farmers and ranchers. While PPP and Economic Injury Disaster Loan (EIDL) advance proceeds are not income and don’t reduce deductions, CFAP payments are different. They are fully taxable, subject to selfemployment tax and should be reported as farm income, Tidgren says.

2 // Child Tax Credit

Expansion. This is part of the $1.9 trillion American Rescue Plan Act (ARPA) of 2021. For 2021 only, “qualifying child” includes children under 18. “The child tax credit is expanded from $2,000 to up to $3,000

per children between the ages of six and 17, and up to $3,600 for children under six,” Tidgren says. If child tax credits impact you, ask your tax preparer about the child tax credit phaseout, the advance child tax credit and child tax credit reconciliation.

3 // Employee Retention

Credit. This is a fully refundable payroll tax credit. “This tax credit can be very valuable if you file tax Form 943,” Tidgren says. This credit is in place for 2020 and 2021 (with different rules for each year). “It’s worth asking your tax advisor about the employee retention credit if you have non-relative employees,” Tidgren says.

4 // New options for

healthcare coverage in 20212022. For tax years beginning in 2021 and 2022, individuals can qualify for a premium tax credit to offset the cost of insurance on healthcare.gov for the amount of premium (second lowest-cost silver plan) that would exceed 8.5%. “Because many farmers and ranchers are self-employed or owners of small partnerships or corporations for which insurance plans may be costly, they may benefit from purchasing insurance on the Marketplace,” Tidgren says. She shared the example of Tom and Kari, a fictional married couple from western Iowa who are 60 years old. Pre-2021, Tom and Kari had a modified adjusted gross income (AGI) of $70,000 per year. The monthly cost of the second lowestcost premium on the Marketplace is $3,324.96, so the cost would be $39,899.52 a year if they purchased the insurance. Before ARPA, they were not eligible for the premium tax credit (PTC) because their income was too high. In 2021 and 2022, however, Tom and Kari (whose AGI remains at $70,000) must pay only $5,950 a year if they purchase the second lowestcost silver plan. They are eligible for a $33,949.52 PTC and may receive it in advance, Tidgren says.

5 // Bonus depreciation. The bonus depreciation rate for property placed into service after Sept. 27, 2017, and before Jan. 1, 2023, is 100%, notes Charles Brown, an ISU farm management field specialist. Ask your tax preparer about the laws regarding bonus depreciation on new property, used property and leased property. Also, note the distinctions between bonus depreciation and Section 179 deductions. “While pole barns, sheds and shops don’t qualify for Section 179, bonus depreciation can be used on these items,” Brown says.

6 // Sick and family leave

credits. Self-employed taxpayers may take a sick leave credit of 10 days for tax year 2021. This applies to days they were unable to work from Jan. 1, 2021, through Sept. 30, 2021, for COVID-19 illness or vaccinations received during the second or third quarters of 2021. Tidgren shared the example of the fictional, self-employed Jeremy, who runs a farm trucking business. During July 2021, Jeremy was unable to work for 14 days because he suffered from COVID-19. In August, he was unable to work for two days because he had to care for his 12-year-old daughter, who was sick from a COVID-19 vaccination.

Jeremy’s net income on his 2021 Schedule C is $36,000. Jeremy will be entitled to a sick leave credit for 10 days and a family leave credit for six days (days in excess of 10 that he was sick and days he missed to care for a family member who suffered a vaccine-related injury). “After running the calculations, Jeremy will claim his $1,935 credit on Form 7202 when he files his 2021 return,” Tidgren says.

7 // Deferred contracts. If your income was lower in 2021 and your expenses were higher, deferred contracts can help. “We can pull that 2022 deferred contract back into 2021 to raise your income,” says Wes Simpson, a certified public accountant and shareholder with Williams & Company in Spencer. He recommends having a few smaller deferred contracts for greater flexibility at tax time. Instead of having one, 50,000-bushel contract, for example, separate it into five, 10,000-bushel contracts. Also, ask your tax preparer about deductions on pre-pay inputs. “Once we know where you’re at with your income and expenses, we have options for managing your tax bill,” Simpson says. Darcy Maulsby is a freelance writer in Lake City.

IOWA SOYBEAN REVIEW® | 23

A SALUTE TO SERVICE Latham reflects on service in Army and soybean industry BY BETHANY BARATTA

After his service in the U.S. Army, Don Latham returned to the Alexander area to farm with his wife and family.

24 | OCTOBER DECEMBER2021 2021 | | IASOYBEANS.COM IASOYBEANS.COM

wards glitter the walls of Don Latham’s basement office on his farm near Alexander. His leadership in national organizations has collected accolades from his peers — all the while building the soybean industry through better seeds, marketing efforts and farmer buy-in. Don grew up in the soybean world. His parents, Willard and Evelyn, started Latham Seeds before soybeans were a main crop in Iowa. The family worked with area farmers to clean oat seeds, later expanding their lines to include soybeans. Willard was one of the early members of the Iowa Soybean Association and a founding director of the Iowa Soybean Promotion Board (ISPB). While attending Iowa State University (ISU), Don studied agronomy and meteorology. Though off the farm, he couldn’t leave seeds altogether, he worked in the seed science lab at ISU.

Service to country During his sophomore year at ISU in 1966, the U.S. Army actively drafted students out of college to go into the service and Vietnam. The Army had developed a two-year ROTC program, which would pay him $100 per month, enough to pay for college. Don committed to being a pilot in the Army, a good fit for the farmer who always wanted to fly. Flight school proved that Don was good at it, too. He was ranked second in his class of 120. His training in meteorology, flight training and flight rules, earned him an instrument rating. This allowed him to fly helicopters in Vietnam and help train aspiring military pilots. Don served in the U.S. Army from 1969 until 1973, including a year in Vietnam with an Assault Helicopter Company. He says his service to the country readied him for future leadership opportunities. “In the military, you learn discipline, teamwork, and that there’s a bigger cause than yourself,” Latham says. “I’ve applied the leadership training I received in the Army everywhere else I’ve gone in life.”

Soy service Don attended local and national soybean meetings with his parents, so when his dad’s term on the ISPB ended in 1985, Don successfully ran to fill his position on the board. As chairman of the ISPB in the 1980s, Don and other state checkoff leaders were interested in — and invested in — the future of the checkoff. At the time, the national checkoff was voluntary; each state board voted how much money they wanted to invest. They set a meeting to discuss the direction of the national checkoff. “We were after uniform funding; we wanted all farmers to benefit and all farmers to pay into it equally,” he says. A subsequent study suggested the creation of a board to manage the collection of national checkoff funds. Thus, the United Soybean Board (USB) was created. Don served as a founding director and later as chairman. Checkoff investments into production and marketing efforts have paid off, Don notes. “When we formed the United Soybean Board in 1991, the U.S. soybean crop was 1.7 million bushels. In 2020, the U.S. soybean yield was more than 4 billion,” he says. “That didn’t just happen. That 2.5-times expansion was because of checkoff-funded research at the state and national levels.” Checkoff investments created markets, too. Before 1996, China was a net exporter of soybeans. In the 2021-2022 marketing year, China is expected to import 101 million metric tons (3.7 billion bushels), according to the U.S. Department of Agriculture. “The soybean checkoff created that demand,” Don says.

The checkoff also created additional uses for soybeans. Through connections in Asia, a subcommittee Don was a part of coined the term ‘aquaculture’ to acknowledge farmers raising fish. Soybean meal has become a large piece of the aquaculture diet. In 1995, there wasn’t a single pound of soybean meal used to feed fish, he notes. Today, more than 500 million bushels of soybeans are used in aquaculture worldwide. “It’s incredible,” Don says. “What USB provided was a platform for people who had the imagination to come to us with funding proposals.” USB presented Don with the Outstanding Achievement Award for his contributions to the industry. Through his many visits to customers worldwide — he’s made more than 40 trips to Asia — he’s learned of markets then untapped by the United States. In his own business, Latham Farms LLC, Don grew food-grade soybeans for tofu makers in Asia. He can still picture the tofu shop set up in a space no larger than a garage. In the back of the shop: a container with his Latham 323 variety beans. Don’s no longer raising food-grade soybeans. Ownership of the family’s business was transferred to Don’s nephew John and his wife Shannon in 2009. However, the 75-year-old is still growing soybeans for Latham Hi-Tech Seeds. As history has proven, neither college nor military service can remove him entirely from the industry. His roots run deep. Contact Bethany Baratta at bbaratta@iasoybeans.com.

IOWA SOYBEAN REVIEW® | 25

Letters to the Editor A few stories f rom readers about their auger tractors as inspired by the November column.

The John Deere 2640, built in 1978, was one of my father’s tractors that I was able to buy when he retired. It’s a good reliable unit that needs a boost every once in a while.

— Rick Juchems, Plainfield

I am incredibly grateful to have heard f rom so many of you about your auger tractors. If others of you have stories, send them in. If you have a comment about a story in the magazine, I want to hear about it. If you have thoughts about farming or agriculture in general, hit me up. It all matters to me. Ann Clinton Aclinton@iasoybeans.com 515-251-8640

26 | DECEMBER 2021 | IASOYBEANS.COM

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

Story of the Year

oes it make me sound old if I start this column by saying I can’t believe how fast 2021 came and went? Maybe it’s a rite of passage that comes with age, but my sense of time has kicked into warp speed. With that being said, however, I’m a sucker for a yearend recap. I call it my annual calendar audit. I look back on each month and analyze the time invested in key areas of my life. Then I ask myself, “Was it meaningful?” “Did it reflect who I want to be and how I want to be remembered?” And perhaps most importantly, “What do I want to do differently next year?” It’s my personality to reminisce and honor lessons learned. But then I’m ready to get rolling on the next steps. Our approach with this edition of the Iowa Soybean Review is no different. I thought it was important to really think about the year, in words and images. Iowa agriculture has been impacted by so many challenging things this year, but we’ve also experienced unexpected highs. This issue of the magazine examines the 2021 journey we took together. But then watch out, readers … next year, our January 2022 issue is full of what’s to come. We have

a lot to look forward to as we turn the calendar page. In other fun news, I recently asked you to send in pictures of your auger setup. (It was actually a reader’s idea, and I loved it.) The response has been awesome. But it’s not too late. If you’re inspired to share your story, please send it my way. I’ll print more submissions in the next issue. As always, email me at aclinton@iasoybeans.com. David Krahling, a reader from Sioux Center, sent me the following reflection, which I thought was beautifully stated: “My guess is that if those tractors could talk, they would have stories to tell, of joys and heartaches, of bumper crops and disasters, of who occupied the seat and who accompanied them on the fender.

Pulling out our crappy auger tractors each fall isn’t a chore; it’s an invitation to relive a slice of the past and celebrate the endurance of both farm and tractor.” As we reflect on our year and think about what comes next, I want to thank you for being on this journey with me. I don’t take for granted the time you invest in reading this magazine or sending me an email. In your “audit,” I hope you find that it’s a rewarding experience. Sending you Christmas blessings … from my little farmhouse to yours. Stay well, my friends.

Editor Ann Clinton’s daughters, Grace, Josephine, Jennifer and Faith. IOWA SOYBEAN REVIEW® | 27

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Iowa Soybean Review | December 2021

Articles inside

The Last Word

A Salute to Service

Save Money with 7 Year-End Tax Planning Tips

SEED SELECTION TIPS

Tools for the Trade

Harvest Destination

A Year of Growth

Executive Insights