Iowa Soybean Review | October 2021 by Iowa Soybean Association

IOWA

SOYBEAN October 2021

Business of Harvest

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

October 2021 | Vol. 34, No. 1

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

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.

Leaning In

Talking Trade

Priority Report

New Iowa Soybean Association president sets priorities for the year ahead.

U.S. Soy Global Trade Exchange examines the road ahead.

Rural bridge replacement and repair: in need of a farmer mentality.

Demand Drivers Full speed ahead for soy-based energy.

On the Cover: A Boone County farmer makes the most of the remaining daylight to finish up harvesting his soybean field. Iowa’s farmers don’t just grow crops and raise livestock; they run a business. It’s a difficult task, but it can be made easier when markets are stable and international trade is running smoothly.

IOWA SOYBEAN REVIEW® | 3

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

Change Happens Quickly

easons change. Quickly. One needs to look no further than my beloved Chicago Cubs. Fresh off a World Series title in 2016, Cubs fans assumed a dynasty was in the making. With its first world championship in hand in 108 tries and an all-star-caliber roster cemented into place, more titles were sure to come. And quickly. That was then. This is now. As harvest season starts, the 2021 Major League Baseball season has mercifully ended for Cubs fans. It featured a team-worst 13-game losing streak and a finish near the bottom of the NL Central. And while there’s always next year, I’m resigned to thinking the rebuilding process in the Windy City is going to take some time. Fortunes can indeed change quickly, and not just for professional baseball teams. Soybean farmers know that variability accompanies their business. Every growing season is unique. Who would have guessed this time a year ago that soybean prices would be near $13 per bushel at the start of harvest ’21? There’s no such thing as the status quo. Time marches on, and with it, the need to adapt and make the most of opportunity.

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Embracing change includes how we communicate news impacting the soybean industry. Beginning with this edition, the publication you hold in your hands will be published 12 times annually (rather than eight). The Iowa Soybean Review (ISR) has a proud and successful history, but we’re not about to rest on our laurels. Soybean farmers have told us they value print, particularly this magazine. They benefit from the information it features and increasingly engage with its editor and writers. The move to publishing ISR monthly is good for the Iowa Soybean Association (ISA) and the farmers we serve. It enables the association to engage with our stakeholders more frequently and share the latest information impacting their bottom line. Take the topic of renewable diesel. In this edition, you’ll find a comprehensive take on this emerging fuel and its interplay with biodiesel. Renewable diesel and biodiesel are complementary but different products wielding tremendous influence on soybean prices. The partners we’ll be working with related to

renewable diesel are those we haven’t traditionally thought of as supporters of our industry. But change is afoot. While renewable diesel presents an enormous opportunity for farmers, there will be implications that merit attention. Ramping up soy production to meet the additional demand for oil will produce more soybean meal. This shift will benefit livestock farmers by driving down protein costs. Export patterns are also sure to change. Historically, we’ve shipped a lot of whole beans to places like China. But renewable diesel will require processing more soybeans in the U.S., generating the need for additional domestic meal consumption. If it materializes, how will global demand and prices be affected? Only time will tell. As harvest kicks into full gear, it’s a much better time for soybeans compared to a year ago. It’s a reminder how quickly things can change and how organizations must be nimble and ready to act, empowered by timely and accurate information. We’re up to the task. I’m hoping the Cubs are, too.

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Farmers Elected to Iowa Soybean Association Leadership Posts BY AARON PUTZE, APR

he Iowa Soybean Association (ISA) board of directors rcently elected Randy Miller of Lacona (Warren County) as president-elect of the association. Miller has represented soybean farmers at the district and state level, most recently as ISA board secretary. He grows soybeans and corn and raises pigs and cattle with his wife Sheila, daughter Kaylee and son Kaleb. “It’s a privilege to advance issues that matter to soybean farmers, particularly in the areas of market development and international trade,” Miller says. “Building and maintaining relationships while providing a reliable and quality product will enhance the success of soybean farmers in this everchanging business.” Also elected as ISA executive officers are: Dave Walton, of Wilton (Muscatine County), treasurer; Suzanne Shirbroun, of Farmersburg (Clayton County), secretary; and Jeff Frank, of Auburn

(Sac County), at-large. All will serve to serve in the best interest of soybean one-year terms. farmers throughout the state.” Robb Ewoldt of Davenport officially ISA directors also re-elected Wayne took the helm as ISA president, Fredericks of Osage (Mitchell County) as accepting the gavel from immediate past a director on the board of the American president Jeff Jorgenson of Sidney. Soybean Association (ASA). “It’s an exciting time for the soybean industry as we rise to meet growing global demand for protein and domestic demand for biofuels,” says Ewoldt, a long-time environmental steward and agricultural advocate. “Members of the executive committee are experienced, dedicated and passionate about the soybean industry The 2021-2022 Iowa Soybean Association executive directors: and driven to deliver (left to right) Jeff Frank, of Auburn, at-large director; Dave for the association,” he Walton, of Wilton, treasurer; Robb Ewoldt, of Davenport, ISA adds. “The new year president; Randy Miller, of Lacona, president-elect; Suzanne Shirbroun, of Farmersburg, secretary. offers new opportunities

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Hawkeyes, Cyclone Team Buses Powered by Homegrown Biodiesel Courtesy of Iowa Soybean Farmers BY AARON PUTZE, APR

iodiesel produced with Iowa and Midwest-grown soybeans will fuel team buses for the University of Iowa Hawkeyes and Iowa State University Cyclones throughout the 2021-22 school year. The sponsorship kicked off in September with the start of the college football season. It’s courtesy of the Iowa Soybean Association (ISA), powered by the soybean checkoff, with support from the Iowa Biodiesel Board (IBB). “Biodiesel generates market demand for soybeans and offers the universities a reliable supply of clean-burning fuel,” says ISA Past President Jeff Jorgenson. “With a focus on reducing carbon emissions, biodiesel is an ideal goto product for our state’s two largest universities. “It’s another example of how ISA is truly driven to deliver for soybean farmers, the environment and the teams we enjoy rooting for,” the farmer from Sidney adds. The Hawkeyes’ and Cyclones’ team buses will travel more than 125,000 miles during the upcoming year, creating additional demand for soybeans.

Once a product in excess, soybean oil’s market share has increased dramatically with the rise of bio-based fuel usage. In addition to creating jobs and reducing carbon emissions, converting the oil component of soybeans into biodiesel also makes soybean meal competitively priced for livestock producers. Iowa farmers are expected to harvest more than 525 million bushels of soybeans this fall. Every bushel will enhance Iowa’s standing as the nation’s top producer of biodiesel. “Iowa State Athletics is grateful for its continued partnership with the Iowa Soybean Association,” says Cyclones Director of Athletics Jamie Pollard. “Much like the Iowa Soybean Association’s mission of ‘Driven to Deliver,’ ISU’s student-athletes, coaches and staff are driven daily in their quest to achieve academic and athletic excellence. “This unique partnership helps drive market demand for the products farmers grow and elevates our brand in support of Iowa agriculture,” he adds. “As we begin another exciting

season of Cyclone athletics, fans should be on the lookout for our team bus which is powered with a biobased fuel.” Creating mutually beneficial outcomes is the best and most efficient way to build markets said Grant Kimberley, ISA senior director of market development and executive director of the IBB. “Biodiesel promotions on the team buses and inside the venues on game days will enhance awareness of the role soybean farmers play in America becoming more energy independent while improving air quality and human health,” he says. Prominent signage featuring biodiesel makes the ISU and U of I buses traveling billboards for the fuel, driving additional awareness of the product and its benefits to farmers, communities and environment. “University of Iowa Athletics is proud to partner with ISA on the Hawkeye team bus using biodiesel and supporting Iowa agriculture,” adds Matt Henderson, the school’s senior associate athletics director.

Iowa Soybean Association District 8 Directors Randy Miller and Warren Bachman support soy biodiesel in the use of university team buses. IOWA SOYBEAN REVIEW® | 9

( YOU ) Who’s the No. 1 protein source in chicken feed? YOU are. That’s right. You’re winning. All soybean farmers, including you, are really big in poultry and livestock feed. How? By pooling your resources through your soy checkoff. Learn how your soy checkoff is bringing tangible returns back to you and your operation at unitedsoybean.org/hopper.

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BUSINESS OF HARVEST As you are harvesting your fields this fall, many factors are dictating where those soybeans will go and how they will get there. Some things you can control. Some things you can't. The stories on the following pages will help you gain insight into how to navigate change with clarity and purpose.

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LEANING IN New Iowa Soybean Association president sets priorities for the year ahead BY BETHANY BARATTA

Robb Ewoldt is a crop and livestock farmer from Davenport.

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onservation, conversation and farmer profitability top the list of priorities for Robb Ewoldt, who recently accepted the gavel as the president of the Iowa Soybean Association (ISA) from Past-President Jeff Jorgenson. “To be elected president of this association is truly humbling,” Ewoldt says. “I’m excited to work with my peers as we navigate this next year of farming.” Ewoldt started farming full time in 1996 after attending Iowa State University for ag business. He initially attended college to become a teacher but soon realized a career in agriculture was his calling. A farm became available to rent near his parents and thus began his full-time farming career. He expanded the family’s cow herd and built hog barns to further diversify their income streams. Robb and wife Jennifer, a veterinarian, married in 2002. His parents retired in 2004, allowing Robb and Jennifer to buy their equipment and rent farmland from them. The couple expanded their crop acres and focused on growing and selling alfalfa to protect less desirable crop ground. They were awarded Alfalfa Producer of the Year in Iowa in 2006. They’ve since added a bioreactor, buffer strips and cover crops to their farm to prevent soil and nutrient loss. Robb says ISA is a leader when it comes to promoting environmental practices and services in the state. He was one of the first participants in the Soil and Water Outcomes Fund, a partnership of Ag Outcomes, a subsidiary of ISA, and ReHarvest Partners, a subsidiary of Quantified Ventures. The Fund provides financial incentives directly to farmers who transition to on-farm conservation practices yielding

positive environmental outcomes like carbon sequestration and water quality improvement. ISA’s role in creation of the Fund will be a great legacy, Ewoldt says. “We are truly leading this movement, and we’re leading it from pretty much from the ground up,” he adds.

Conversations are essential Ewoldt says it’s vital that Iowa’s soybean farmers participate in conversations regarding farming and agriculture. It’s because of those types of conversations that Ewoldt got involved with ISA. Seeking research and data for a conversation about water quality in 2014, he was directed to ISA for scientific data showing farmers’ efforts. After that conversation, he was asked to attend a conference talking about farmers’ efforts in conservation and nutrient reduction. Since then, the Ewoldts have hosted more than 1,000 people on their eastern Iowa farm. The Ewoldts received the 2020 ISA Advocate for Iowa Agriculture Award, presented by Bayer CropScience, for their efforts in telling the story of modern agriculture. With their sons Alex and Isaac, the Ewoldts host an annual “Picnic in the Pasture” for 300 people to learn more about life on the farm. Jennifer authors a biweekly column for the Quad-City Times detailing the activities and events associated with operating a family farm. The column is so popular, the newspaper turned the fan-favorite pieces into a book, “Into the Fields: A Celebration of Farm Life.” The Coalition to Support Iowa’s Farmers recognized the Ewoldts in 2019 with its Wergin Good Farm Neighbor Award. It recognizes farm families for establishing and promoting

good neighbor-to-neighbor relations as livestock farmers. The family has also been named an Iowa Farm Environmental Leader. The program is a joint effort between the offices of Iowa’s Governor and Lt. Governor, the Iowa Department of Agriculture and Land Stewardship, and the Iowa Department of Natural Resources. In addition, the Ewoldts have been recognized with an Eddy Award by River Action, a group that fosters environmental, economic and cultural vitality of the Mississippi River. They were the first farmers to win the award, a recognition of the family’s efforts to build relationships with nonag groups. Robb has participated in Congressional hearings, legislative visits and conversations at the Iowa Statehouse in Des Moines and on Capitol Hill in Washington, D.C. “It’s vital we have these conversations,” Ewoldt says. “Farmers are about 2% of the population growing the food for the rest of the world. But most of the people making policies and regulations we live by don’t understand farming and agriculture.”

Farmer profitability The current challenge, Ewoldt says, is sustaining profitability in agriculture. “We see profitability right now,” he says. “But all too soon, input costs and land rents follow suit and margins get squeezed.” What is ISA’s role in helping farmers create profitable opportunities? “We have to figure out how to help Iowa farmers grow soybeans with fewer inputs so we can try to keep that profitability,” Ewoldt says. Contact Bethany Baratta at bbaratta@iasoybeans.com.

“We are truly leading this movement, and we’re leading it from pretty much from the ground up.” — Robb Ewoldt IOWA SOYBEAN REVIEW® | 13

TALKING TRADE U.S. Soy Global Trade Exchange examines the road ahead for the world of soy BY JOSEPH HOPPER

owa’s farmers don’t just grow crops and raise livestock; they run a business. It’s a difficult task, but it can be made easier when markets are stable and international trade is running smoothly. At the U.S. Soy Global Trade Exchange (GTE) in St. Louis, attendees learned more about China – one of the Iowa soybean farmers’ largest customers – and the current attitudes at play in the nation, which consumes 60% of the world’s supply of soy. Simon Rabinovitch, economic editor at The Economist, says decades of commentary and speculation on China typically can be described as falling

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under the bull and bear dichotomy used by the financial sector. A bullish China has often been described as an unstoppable force, while a bearish China is considered destined to fall apart. “As China grows, so does its soybean consumption,” Rabinovitch says. “Many industries are going to face challenges because of an aging population, but people still need to eat. In the last four decades, reality has leaned closer to the bullish description. However, the country faces several significant challenges as it sets lofty goals for the future. “People are increasingly prosperous;

there may be a little bit less pork, more fish but maybe more beef, a mixture of trends,” Rabinovitch says. “My sense is the population trends, certainly for the next 10 to 15 years, are not going to have a great impact on consumption. They will be relatively neutral for soybeans.” China’s workforce is improving at an incredible pace, with approximately 8 million earning post-secondary training and college degrees each year. At the same time, China’s demographic situation is changing – the population is becoming fewer and older. The country’s average age today is older than in the U.S. The population’s

consumption of soy, however, is not faltering but growing fast. Rabinovitch says three main challenges are affecting China and the rest of the globe today – trade friction, unbalanced economics and geopolitics. These are familiar topics to Iowa farmers who have endured the fallout from the international trade difficulties of the last half-decade. “China is trying to become more self-reliant,” Rabinovitch says. While the relationship between America and China continues to be defined, Rabinovitch says the economic linkage between the two countries is

strong and both countries have been benefiting post-Phase One Trade Deal. “When you look at the economics, the trade relationship is looking very strong,” Rabinovitch says. “Ag exports to China have boomed, and Chinese exports are doing better than they have ever done in terms of global market share. But difficulties may remain on the horizon.” Politically, things are very tense. “Many people in China thought this would be a new start for U.S. and China relations,” Rabinovitch says. “What we have seen now is American policy toward China has really had a structural shift; whereas in the 1990s and early

2000s, economics took precedence and everything else was playing second fiddle. I think there is a risk that although the economic ties look very strong now, the political foundations for the U.S. China relationship are as tense as they have ever been in the period of normalization and diplomatic relations going back to the late 1970s.”

Supply and demand Conversations on China’s appetite for soy and attitudes in trade appeared during multiple GTE panels, including one featuring former chief U.S. agricultural negotiator Gregg Doud. The January 2020 Phase One Trade Deal agreement between the U.S. and China featured 57 structural changes, of which 54 have been completed, Doud says. Additionally, he described China’s banning of swill feeding as one

“When you look at the economics, the trade relationship is looking very strong. Ag exports to China have boomed, and Chinese exports are doing better than they have ever done in terms of global market share.” — Simon Rabinovitch, Economics Editor, The Economist

IOWA SOYBEAN REVIEW® | 15

of the most significant changes he has witnessed in Chinese agriculture and trade. “Half the hogs on the planet are in China and half of those were fed food scraps,” Doud says. “They need 30 million tons of more feed, which changes the dynamic significantly for everyone in the world.” Using Des Moines as a prime meridian for the drought battering crops across the nation this summer, USDA Chief Economist Dr. Seth Meyer says the expectation for America’s third largest soybean crop is recordbreaking yields east of Iowa’s capital and an overall increase in export value coming at a beneficial time for America’s farmers. “Contributing to the rebound in cash receipts for farmers are all the things an Iowan loves – corn, soybeans and hogs and to a lesser extent cattle,” Meyer says. “These are also things the

Chinese buy from us in the market.” The rebound comes at an opportune time for producers, Meyer says with a surge in direct payments related to trade friction and COVID-19. “What you have is a big decline in ad hoc government payments being replaced by commodity price increases and that’s supporting farm income,” says Meyer.

Vegetable Oil Soybean oil is expected to feature prominently in 2021. Dorab Mistry, Godrej International Ltd. director, says he remains bullish on vegetable oil prices. The Canadian canola crop suffered under drought conditions, palm oil remains bullish despite fears of output challenges and the sunseed

crop is expected to be large this year. Although vegetable oil prices are high, demand disruption has been low. Calling the biodiesel industry “revived” due to the COVID-19 pandemic and election of Pres. Joe Biden, Dr. Julian McGill, head of Southeast Asia LMC International, says biodiesel demand has increased the demand for soybean oil dramatically. “Looking at the oil share in the total soybean crush value, it’s normally around 30-35%,” McGill says. “Since the Renewable Identification Number credit values have gone up, it has shot up. This shift means the U.S. is decoupled from the rest of the world.”

“Buyers are putting a lot of pressure to get as much capacity as possible. We’re hearing they are chartering different types of vessels other than container vessels because there’s no capacity left.” — Carl Bentzel, Commissioner, Federal Maritime Commission

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Shipping The shipping industry has also seen dramatic changes due to the pandemic, which is causing headaches for U.S. exporters trying to export soy products. “In the summer of 2020, we started to see a surge of imports coming back to the U.S. caused by consumer demand that was reactivating and climbing very rapidly,” says Darwin Rader, international sales and marketing manager at Zeeland Farm Services, Inc. “We saw congestion at the West Coast ports, and the congestion started moving inland and affecting rail,” he continued. “We saw trucking and chassis shortages. Exporters are facing challenges getting bookings, access to containers while ocean carriers continue shipping more empties direct back to Asia.” A silver lining for farmers whose crops are bound to travel by ocean is while supply ships and containers are in high demand, the demand for grain and ag commodities in 2022 is also expected to continue to increase,

according to Guy Hindley, managing partner at Dry Cargo Howe Robinson Partners. “The ships carrying grain are also now in more demand for places like Columbia, which are no longer taking the very big ships or in the same volume they once were,” Hindley says. Carl Bentzel, Federal Maritime Commissioner, says the highdemand shipping situation will likely continue into next year. “Hopefully, during the Chinese New Year timeframe [February] there will be some alleviation because the Chinese production will slow down,” Bentzel says. “Buyers are putting a lot of pressure to get as much capacity as possible.” Bentzel says he’s hearing that China is chartering different types of vessels other than container vessels because there’s no capacity left. “Hopefully, some of the issues of congestion can be worked out to mitigate some of the issues, but it’s not inconceivable it could go on past that time,” he says. Contact Joseph Hopper at jhopper@iasoybeans.com.

Federal Maritime Commissioner Carl Bentzel expects trade congestion to begin returning to normal in 2022.

With supply ships in high demand, the bottleneck is hoped to spur the creation of new vessels.

IOWA SOYBEAN REVIEW® | 17

Mike Steenhoek, Soy Transportation Coalition, aboard the riverboat Twilight on the Mississippi River near LeClaire.

PRIORITY REPORT Rural bridge replacement and repair in need of a farmer mentality BY MIKE STEENHOEK, Executive Director, Soy Transportation Coalition

ne of the many admirable traits of farmers is that when they encounter a challenge or dilemma at their farming operation, their default response is not to get out their credit card and start spending their hard-earned money. Instead, most farmers first ask themselves, “How can I be creative and innovative in order to solve this problem without spending a significant amount of money? I would rather save my way out of this problem rather than spend my way out of this problem.” If this stewardship mentality works so well on the farm, it certainly should work when managing and improving our

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transportation system. While we affirm and applaud much of the national debate regarding investing in our multi-modal transportation system, the overwhelming majority of the proposals submitted by our nation’s leaders focus on addressing the needs via more taxpayer funding. Increased investment is clearly required. However, the approach to enhancing our transportation system could also benefit from the farmer mentality that insists on making an existing dollar stretch further.

Essential supply chain link Rural roads and bridges serve as the initial link in the overall supply chain –

allowing the soybeans and grain produced on a farm to be eventually consumed by domestic and international customers. Of the bridges in the country classified as deficient and, in many cases, subject to closures or restricted access, a significant percentage are in rural areas. To promote more cost-effective approaches to replacing and repairing rural bridges without compromising safety, the Soy Transportation Coalition (STC) recently released the report, “The Top 20 Innovations for Rural Bridge Replacement and Repair.” The report features 10 rural bridge replacement innovations and 10 rural bridge repair innovations.

Bridge Replacement Innovations 1. Railroad Flat Car Bridges 2. Geosynthetic Reinforced Soil – Integrated Bridge System (GRS-IBS) 3. Vibratory H-Piling Drivers 4. Buried Soil Structures 5. All Steel Piers Railroad Flatcar Bridge – Buchanan County, Iowa; Photo credit: Mike Steenhoek

6. Galvanized H-Piling 7. Press Brake Tub Girders 8. Galvanized Steel Beams

Many of the innovative concepts featured in this report can result in a 50% or greater cost savings for rural counties. This can easily result in replacing a bridge for $100,000 to $150,000 compared to the prevailing method of $250,000 to $400,000. To select the featured innovative concepts, the STC assembled a group of 13 bridge engineers and experts from the 13 states comprising the organization. Three engineers serve as principal analysts for the project with the remaining 10 engineers or experts serving as advisory committee members. A concept must meet the following criteria to be included in the Top 20 list: 1.) Provide initial or lifecycle cost savings; 2.) Have been validated by a credible engineering entity or organization; and 3.) Be accessible in a large section of rural America. Our nation’s rural bridges serve as the initial step in a product’s lengthy

journey to the ultimate customer. Unfortunately, the region of the country in which bridge conditions are most severe – rural areas – also happen to be the region in which available funding to improve these conditions is stagnant or declining. The concern remains that if this starting line for farmers is not wellmaintained, soybeans and grain will not effectively reach our customers. While pursuing increased investment for rural bridges should be a featured part of our overall strategy, increased energy and attention must also be devoted to addressing the cost side of the equation and making existing tax dollars stretch further. More spending is certainly welcome, but we also should pursue more savings. As we strive to maintain and improve our transportation system, may we think more like farmers. Contact Mike Steenhoek at msteenhoek@iasoybeans.com.

9. Prestressed Precast Double Tees 10. Precast Inverted Tee Slab Span Bridges

Bridge Repair Innovations 1. Piling Encasements 2. Concrete Pier Piling Repairs 3. Driving Piling Through Decks 4. Epoxy Deck Injections 5. Deck Overlays with Type O Concrete and Plasticizers 6. Deck Patching 7. Thin Polymer Concrete Overlays 8. Penetrating Concrete Sealers 9. Spot Cleaning Painting Steel Beams 10. Concrete Overlay on Adjacent Box Beams

Buried soil structure – Appanoose County, Iowa; Photo credit: CONTECH Engineered Solutions, LLC

IOWA SOYBEAN REVIEW® | 19

DEMAND DRIVERS Opportunities abound for soybean oil BY AARON PUTZE, APR

hat was once a backseat driver in creating soybean demand and profitability now has two hands firmly on the wheel. Soybean oil demand is booming, a trend that’s expected to have staying power. “We’ve come a long way in a short time in terms of building markets for soy-based energy,” says Grant Kimberley, a farmer from Maxwell and Iowa Soybean Association’s (ISA) senior director of market development. “Whether for fuel or as protein for livestock and people, demand is growing, and there’s reason to be optimistic as we look to the next two to three years.” Demand drivers for soy abound, benefiting soybean and livestock farmers and the environment.

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Whole soybean sales to China and other key buyers are on the uptick. Soybean crush is running strong, thanks to improvements in the global economy and a rebuilding of pig herds in south Asia after being decimated by African Swine Fever. Stepped-up efforts to curb carbon emissions domestically are also fueling demand for cleaner energy alternatives, including biodiesel and renewable diesel. More conversations about carbon and climate are timely topics for the biodiesel industry to be involved in, says Donnell Rehagen, CEO of the National Biodiesel Board (NBB).

Winning formula “Renewable diesel, biodiesel and sustainable aviation fuel are making

headlines,” he says. “All drive growth for oil stocks, and that’s a winning formula for soybean farmers.” The proof is in the numbers. Kimberley says biodiesel demand accounts for 13% of the net market value of soybeans, or $1.69 per bushel, when cash prices hit $13. More demand resulting from higher biodiesel blends, renewable diesel and new uses will only bolster these numbers. Kimberley, who also serves as Iowa Biodiesel Board’s (IBB) executive director, says biodiesel blends up to B20 can be used in any diesel engine, and some users can even go up to 100%. B20 burns cleaner than petroleum-based diesel fuel and significantly reduces particulate and carbon emissions.

“Many of the old concerns about using biodiesel no longer apply,” he says. “It’s a better product today than 20 years ago, as are the engines it powers. Experience also goes a long way in knowing how to use it.” Representatives of the biofuels industry, including Kimberley and Rehagen, gathered in Missouri in August to pinpoint obstacles and opportunities for biomass-based diesel like biodiesel and renewable diesel. All agree the glass is half full for generating more demand and profits for soybean growers. They acknowledge the rise of renewable diesel and the concerns some have about its impact on future biodiesel demand and competition for feedstocks. But Rehagen is quick to add that much of the angst is misplaced. “While renewable diesel and biodiesel require different production processes, both use the same feedstocks. For soybean oil and values, growth in renewable diesel will be a positive driver for soybean usage and prices,” he says. While the NBB advances the entrance of soybeans into renewable diesel markets, they’re also involved in conversations about electrification of passenger vehicles and public transportation fleets.

Electrification struggles David Cobb, NBB’s director of federal affairs, says calls for full-on electrification of the nation’s over-theroad fleets are premature. According to Cobb, credible studies demonstrating the feasibility of rapidly expanding the number of electric vehicles are lacking. In California, home to some the nation’s most progressive carbon reduction policies, just 2% of over-the-road passenger vehicles are electric powered. “It’s going to be a long road to large-scale electric vehicle usage,” Cobb says. “In the meantime, let’s talk about options and opportunities

to decarbonize today. The answer is cleaner-better-now biodiesel and renewable diesel.” Like renewable diesel, sustainable aviation fuel will drive oil demand growth. Just one domestic producer of sustainable aviation fuel is operating, but that’s likely to change as more airlines commit to reducing carbon emissions. Sustainable aviation fuel will most likely rely on soybean oil. Farmers, flyers and the environment will all be beneficiaries, he adds. “Airplanes can’t be powered by electricity,” Rehagen says. Federal and state legislation prompted by growing public interest in reducing the nation’s carbon footprint are also powering demand for energy made with soy. Legislation seeking to boost renewable fuel production and usage in Iowa will likely be discussed again when legislators return to Des Moines in January. Cobb says biofuels interests are also gaining traction in infrastructure packages being debated by Congress. Among them is a $1 billion program to increase the number of school buses powered by biodiesel and electricity. NBB, IBB, ISA and the American Soybean Association are also advocating for a Biofuel Infrastructure and Agricultural Product Market Expansion Act and three-year biodiesel tax credit extension (the latter through Dec. 31, 2025). Both measures are garnering increased Congressional support.

Rocketing demand Biodiesel and renewable diesel markets accounted for almost 2 billion gallons of demand in 2013. Last year,

those totals rocketed to nearly 3 billion. Demand is up 4.9% in 2021, exceeding 2020’s growth of 4.1%. “The growth last year occurred despite a nearly 8% decrease in U.S. diesel consumption,” Kimberley says. Every conversation about demand has an impact at the farm gate, a reminder that soybean farmers are indeed involved in a national and international business. Demand for soybean oil increases the amount of soybeans crushed. More crush produces additional inventories of soybean meal, an efficient and readily available protein supplement for animal, poultry and fish feed. Livestock producers are the ultimate beneficiary of this formula. “Clearly, it’s an exciting time for feedstocks,” says Mac Marshall, United Soybean Board vice president of market intelligence. “It’s a point we make often and one that was envisioned 20-30 years ago when discussing how to find markets for the oil. “But we can’t rest on our laurels,” he’s quick to add. “We must be vigilant about expanding domestic and global markets for soybean meal. If we don’t, we risk creating bottlenecks in the system, adversely affecting soybean crush.”

Foresight proven Rehagen says the world of opportunity involving soy proves the wisdom, foresight and investment soybean farmers have made in the fuel industry over the past three decades. “There’s a lot of momentum because soybean farmers stepped up and took a seat at the table long before most realized the potential of the oilseed. They took the wheel by making a financial commitment to play a key role in home-grown, renewable fuel. It’s an investment that’s yielding a bountiful harvest.” Contact Aaron Putze at aputze@iasoybeans.com.

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ISA farmer-members enjoyed an evening of socializing at 99 Bottles Winery and Vineyard near Garner.

GATHERING PLACE Social interaction, education and policy centered around eight ISA district meetings BY KRISS NELSON

he Iowa Soybean Association’s (ISA) 2021 district meetings have wrapped up, and it was a whirlwind summer for ISA’s producer services team, staff and board members as they hosted eight meetings throughout the state. Sponsored by FMC, the events offered a variety of socializing and educational opportunities – something different from previous years. ISA’s Producer Services Coordinators Bre Wagner, Carrie Kelly and Whitley Frieden were excited to be back in person this year. “It’s been great to see so many members come out and join us for our district meetings,” says Wagner. “With

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meeting activities ranging from a boat tour to a baseball game, hearing from Bill Northey to touring a fish farm, there were all kinds of options for folks to try something new this summer. After a year of no meetings due to COVID-19, it was great to see people and have the chance to catch up in person.” Mike and Barbara Henning, farmermembers from Waterloo, say they enjoyed the opportunity to learn more about ISA’s efforts and catch a baseball game. “I appreciated the brief updates from staff members and the one-onone discussions,” Mike says. “I really appreciate ISA’s research studies and

reporting, especially as they relate to environmental issues. Information on emerging production traits was also of interest. It is nice to get to know who I can call on for questions in the future.” David Rossman attended the district meeting properly titled “Shake the Lake” as the group set sail on Lake Okoboji. It wasn’t your typical setting for the district meeting, but Rossman says he enjoyed the change. Getting together with other soybean producers as well as state and national soybean industry representatives was a unique opportunity. American Soybean Association (ASA) Director Brian Kemp and United Soybean Board (USB) Director Tom Oswald spoke

to the group, providing national checkoff updates, while District 1 Directors Chuck White and Brent Swart, and Stephanie Essick, director at large and ASA member, spoke on behalf of ISA. “Each of the board members gave a little talk, and although I have known all of them personally for quite a while, I was really impressed with the information they presented,” Rossman says. Perry Black from Barnum attended two district meetings this year, taking the opportunities to attend the roundtable with Bill Northey, former USDA Undersecretary, and tour Eagle’s Catch tilapia farm in Ellsworth. Black says he appreciates the opportunities given to attend ISA district meetings. “The Iowa Soybean Association is out there, staying engaged with producers and keeping us in the know for what is going on. It always gives me a chance to talk to people that can carry questions that I have also back to their meetings,” he says. Following a year of delayed and cancelled events, farmer members were eager to engage, says Michael Dolch, ISA public affairs director.

Dulch educated the groups about trade, biofuels, taxes and infrastructure since the issues are top of mind for soybean farmers. “We continue to share the concerns and real-life examples they have raised with our state and federal policymakers to let them know how concerned farmers are about various legislative proposals and what they could potentially be forced to pay as input costs chase higher crop prices,” he says. Dolch says farmer members are happy that improvements are being considered to physical infrastructures, such as roads, bridges, locks and dams, but are approaching each proposal with cautious optimism. “They don’t want infrastructure upgrades to happen at the expense of stepped-up basis being eliminated or other devastating tax changes,” he says. Regardless of policy or issues facing farmers today, Dolch says the farmermembers all brought a positive vibe to the meetings. “There was a great turnout, which goes to show they have missed the engagement,” he says. “The fellowship and camaraderie were a highlight throughout the meeting series.” Contact Kriss Nelson at knelson@iasoybeans.com.

— Brent Renner, at-large ISA district director

— Scot Bailey, District 7 ISA director

— Perry Black, farmer from Barnum

“ISA is engaged with producers. They keep us in the know for what is going on. It always gives me a chance to talk to people that can carry questions that I have also back to their meetings.” Whitley Frieden, ISA producer services coordinator, addresses a group of farmer-members during a district meeting held near Gardner at 99 Bottles Winery and Vineyard.

— Perry Black, Barnum area farmer

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CONSERVATION CONNECTIONS ISA’s new conservation agronomists assist farmers and ag retailers with conservation efforts BY KRISS NELSON

he Iowa Soybean Association (ISA) is reaching out to more farmers and landowners through a conservation agronomist network launched in August 2020. Its goal: to expand conservation efforts in the state through partnerships and expertise. There are four conservation agronomists at ISA, with two having relationships with ag retailers that are members of the Agriculture’s Clean Water Alliance (ACWA). “We have a long history working with ACWA, and we have explored a number of different ways to engage sales agronomists more in conservation delivery,” says ISA Senior Field Services Program Manager Heath Ellison. “We see an opportunity to use the sales agronomy team to reach farmers we don’t normally reach and to assist sales agronomists with potential conservation programs for their clients.” Ellison says the team is tasked with three primary goals:

Deliver conservation opportunities to the farmer by providing technical knowledge and

connecting them with financial assistance, such as cost share programs.

Build the sales agronomist relationship by utilizing their network and relationships with farmers to promote agronomic and conservation discussions.

Be the in-house technical expert the sales agronomist and farmer rely on. Conservation agronomists are currently funded through grants. An additional goal, Ellison says, is for this effort to demonstrate the value of a conservation agronomist in the ag retail system. “We have a vision of every ag retailer in Iowa having a conservationist agronomy team member on staff,” he says. “ISA’s conservation agronomists have a great opportunity to demonstrate the value in having the positions within the ag retail system.”

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Dustin Brucker Dustin Brucker is located at ISA’s office in Ankeny, and is the one conservation agronomist without a specific ag retail partnership. He works with farmers statewide, although his emphasis is working within the Raccoon River Watershed and supporting others on the team. Brucker says he helps farmers understand which practices could have the most impact given their local conditions and operational goals. Another large part of Brucker’s position is helping build awareness of the financial opportunities available in Iowa for farmers to help preserve their land. “I am here to guide farmers and landowners to Iowa’s financial opportunities and help them navigate the financial process,” he says.

Rosie Roberts Rosie Roberts is the newest Conservation Agronomist. She is partnering with Cooperative Farmers Elevator (CFE) at its Rock Valley location. “I serve as a technical resource to all their agronomy support staff and farmers to help implement new conservation practices and be a little more environmentally conscious and focus on how profitability comes into play with those conservation practices,” she says. Roberts, who is from central Illinois, has been meeting with CFE agronomists and farmers familiarizing herself with the different farming practices in northwest Iowa.

Ryan Johnson Ryan Johnson is officed at Ag Partners LLC’s Calumet location. This location situates him between two targeted areas in northwest Iowa, the Floyd River and Headwaters of the North Raccoon watersheds. “There is a lot of excitement about conservation right now. With the carbon credit buzz, that’s an exciting thing,” he says. “We can make a difference by showing farmers they can have conservation on their farms and be profitable at the same time. We are trying to walk them through the process and be as helpful as we can.”

Joseph Wuebker Joseph Wuebker leads the Iowa Department of Agriculture and Land Stewardship (IDALS)-funded ACWA Farm to River Partnership project. He also works with sales agronomists from Landus Cooperative, NEW Cooperative and Nutrien Ag Solutions. “These sales agronomists are smart. They are good at what they do, and to be in a position where they feel comfortable getting information from us is a big thing. We are a trusted partner and advisor to farmers,” he says. Jeff Schleisman is one of NEW Cooperative’s agronomy sales specialists who is working with Wuebker. “There is always something new with cover crops. It is a topic of conversation, especially in our neck of the woods with the Racoon River Watershed,” Schleisman says. Once that conversation happens, Schleisman connects Wuebker with the producer. “The beauty in that is, instead of me having to take on one more thing in the ag retail industry to manage, he takes that relief off me,” says Schleisman. “Joe is here to walk us through the rest of the process and do a heck of a lot better job than I can.” With the partnership, New Cooperative is able to have a conservation agronomist in its trade

area to build relationships with our local agronomists and farmers to make conservation practices easier to adopt and execute, says Dan Dix, NEW Cooperative general manager. “We can work together to promote conservation practices and find potential cover crop uses.” Wuebker says there is a three-year project goal in his area to raise 7,000 acres of cover crops a year and to implement 20 edge-of-field practices. Wuebker is also helping with area water monitoring. “I compile data so we can see what is actually going on out there,” he says. Ellison says it has been a fascinating year watching these different methods within the conservation agronomist program develop. There are plans to expand the network. “By having this field-based expertise, we are influencing the adoption of the practices we want to see grow, practices that are important in achieving the goals of the Iowa Nutrient Reduction Strategy,” he says. “We believe that engaging the ag retail system in this way has the potential to make significant impact on conservation adoption and Iowa’s water quality goals.” Contact Kriss Nelson at knelson@iasoybeans.com.

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

Estate Auction Thrills

“I

s he speaking a foreign language?” My 7-year-old nephew, Daniel, was standing beside me recently at an estate sale, listening to the auctioneer call out a choice of boxes organized on a flatbed trailer. We had combed through the offerings before the sale started, and Daniel was laserfocused on a plastic tote full of balls he’d seen down the line. I explained to Daniel that the rhythmic chant of the caller wasn’t foreign, but it was definitely unique. I said the auctioneer had to go to a special school to learn the impressive skill of creating interest and urgency. My nephew was spellbound. He took my bid card out of my pocket and held on to it for dear life. I can only imagine what he was thinking, but I assume he felt like he was clutching the key to the universe in his hands. Or, at least, that’s how a piece of paper with a number written in sharpie makes me feel. By the time the crowd shuffled closer to Daniel’s treasures, he’d learned how a subtle head nod would seal the fate to his happiness. He was poised and ready when it was go time. There were a lot of items around the tote he wanted, and the bid was for choice. When the current call went over his allotted budget, he

had to chance fate and let it go. But the winner didn’t pick the tote my nephew wanted, and so the process started over again. When Daniel won the bid and snatched up his treasures, I knew the child would be hooked on auctions for life. I should interject here and say that I would have paid whatever it took to get Daniel that tote. However, it wasn’t my first time assessing an auction crowd, and I was pretty sure it wasn’t the athletic equipment our opponent was after! I’ve also learned over the years that playing it too safe won’t necessarily work out for you in the end. I have some estate auction regrets. But, I also have some wins. Let’s face it, it’s a “bid now or lose out” world we are living in right now. I don’t know if Daniel will remember his first estate auction, but I will. It’s always fun introducing people you love to experiences that bring you joy. And it’s even more fun when you “win the bid” of whatever adventure you’re on. What’s your auction tale? Tell me about your most satisfying win or heartbreaking pass. If I’ve learned anything about life over the years, it’s that the best memories are never about the stuff and always about the story. Stay well, my friends.

My nephew Daniel’s first estate auction was an exciting adventure.

Editor’s Note: This issue of the Iowa Soybean Review marks the beginning of a new start. The magazine will now be published on a monthly schedule instead of eight times a year. You’ll be hearing from us more frequently and I’d like to know what you’d like to read more about. Email me at aclinton@ iasoybeans.com and let me know you’re thoughts.

IOWA SOYBEAN REVIEW® | 27

THE BEST BUSHEL IS THE NEXT BUSHEL.

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Iowa Soybean Review | October 2021

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