Iowa Soybean Review | November 2021 by Iowa Soybean Association

IOWA

SOYBEAN November 2021

Celebrating 60 Years of Farming

results STINE® ENLIST E3® SOYBEANS A $22+/acre yield benefit plus access to the best weed control in the industry. LEARN MORE AT STINESEED.COM.

*$22 per acre profit advantage is based on analysis of Stine’s newest select Enlist E3 lines relative to 218 industry lines in 12,000 replicated trials conducted in 2019. IMPORTANT: This card is not intended to provide adequate information for use of these products. Read the label before using these products. Observe all label directions and precautions while using these products. TM ® SM Trademarks and service marks of Dow AgroSciences, DuPont or Pioneer, and their affiliated companies or their respective owners. The transgenic soybean event in Enlist E3® soybeans is jointly developed and owned by Dow AgroSciences LLC and M.S. Technologies L.L.C.

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

November 2021 | Vol. 34, No. 2

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

A Diamond Anniversary ISA leader celebrates his 60th harvest.

Sailing is Believing ISA Experience Class tours Mississippi by riverboat.

Rivers: Not Just for Exports Importance

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

of utilizing waterways both outbound and inbound.

Soy Spotlight

Meat, poultry and egg sales boost soy utilization and sales.

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.

On the Cover: ISA District 8 Director Warren Bachman is celebrating his 60th harvest. Read about his farming experiences on page 12.

IOWA SOYBEAN REVIEW® | 3

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

ISA: The Courage to Live Vertically

“C

ourage is contagious.” It was a declaration shared by author, speaker and expert mountain climber Manley Feinberg while keynoting a recent meeting of state and national soybean staff in Nashville. His perspectives, obtained from decades of “living vertical,” were empowering. Courage is mandatory when big wall climbing and “camping” alongside the face of a sheer granite cliff suspended 7,500 feet above a canyon floor. It’s also a must when traveling to some of the world’s most primitive and pristine places to scale treacherous terrain – from El Capitan in Yosemite National Park to the incredible walls of the Aksu Valley in Kyrgyzstan. “Living vertical” is leaving your comfort zone and the security of living horizontal. “It makes you sharpen your focus and commit to something worth reaching for,” Feinberg says. Exhibiting courage becomes contagious, he adds, leading one to follow one accomplishment with another. The farmer leaders of the Iowa Soybean Association (ISA) have long acted courageously. ISA unified two soybean boards into one. And they continue to make a difference on a host of issues, from enhancing consumer trust in modern ag to improving soybean production and demand (and the infrastructure

4 | NOVEMBER 2021 | IASOYBEANS.COM

connecting both). The proof is creating and helping lead the Iowa Food & Family Project, North Central Soybean Research Program, Research Center for Farming Innovation, Soy Transportation Coalition and Iowa Biodiesel Board. More recently, ISA launched the Soil & Water Outcomes Fund (SWOF). As stakeholders in environmental stewardship, farmers know they must engage in the inner workings of the carbon sequestration market to understand the obstacles and opportunities it presents. SWOF compensates farmers for achieving measurable improvements in carbon emissions and water quality. Paying both sets it apart from other carbon programs, providing more significant financial payments to farmers and increasing the pace and scale of adoption of sustainability practices. Nearly 10,000 acres in Iowa were enrolled in SWOF’s first year, increasing to 100,000 in multiple states in Year 2. Enrollment of more than 200,000 acres is expected in 2022. ISA has also had the courage to take a new look at how the industry can impact policy. Last year’s launch of a multistate soybean collaborative involving Illinois, Indiana, Ohio, Missouri and Iowa will commit resources to dig deeper on legislative and regulatory matters. Breaking

the confines of traditional policy work enables the soybean industry to address regional issues impacting farmers more effectively. A timely example is biofuels. Explosive growth of renewable diesel demand, driven largely by policy and regulatory incentives, is having a sudden and profound impact on soybean oil and meal demand. On the oil side, we’re experiencing industry shockwaves as demand skyrockets. This, in turn, distorts the meal/oil value proposition. While these happenings are good news for soybean prices and livestock farmers in the near term, the potential impacts 3-5 years out are more difficult to forecast and quantify. What we do know is that government interference in basic supply and demand formulas often has unintended consequences. Dramatic increases in demand for soybean oil will have global implications and require the very best of ISA to ensure successful policy outcomes for farmers and our domestic and global customers. ISA has long had the courage to lead. What new programs will ISA develop to positively influence the industry and support farmers in the years ahead? No one knows for sure. What is certain, however, is that the association will continue to “live vertically” to ensure the industry’s continued growth and prosperity.

YOU WERE

BORN TO FARM.

WE WERE BORN TO FINANCE IT. We work for you and no one else. If you want to see the difference between a lender that’s mission-driven versus profit-driven, take a look at Farm Credit Services of America. We are owned by our customers. Managed by farmers and ranchers. So everything we do is focused on what’s right and what’s best for those we serve. Discover the benefits of a lender that works for you at 800-884-FARM.

Agriculture Works Here.® FCSAmerica.com

Mark B. / customer since 1989

Policy Update Michael Dolch, ISA Director of Public Affairs, MDolch@iasoybeans.com

Details Matter in Estate Tax Debate

hile farmers readied equipment for in estate tax debate harvest season the past few months, several proposals making changes to capital gains taxation at death for family farms have been making headlines and causing concern throughout ag circles. One federal budget proposal in particular, the American Families Plan (AFP), would eliminate the stepped-up basis for inherited assets greater than $1 million for individuals’ estates and $2 million for couples’ estates while deferring capital gains tax liability on business assets so long as the business remains family operated. Much of the debate around the AFP proposal has centered around the exemption (or the deferral) of capital gains liability for farms that continue to be family operated after the generational transfer. Some folks equate the deferral to no-impact, reasoning there is either capital gains tax owed at the time of death or there is not.

6 | NOVEMBER 2021 | IASOYBEANS.COM

The USDA Economic Research Service’s model, which indicates that under the proposed plan, only 1.1% of created estates would owe a capital gains tax at death, seems to support this view of the AFP. Looking at it through this lens, 98.9% of farms are not impacted by the changes. However, many economists, tax practitioners and farm organizations, including the Iowa Soybean Association (ISA), argue that deferred capital gains taxes can have significant implications for a farm, even if it continues to be operated by the family. Why? Because it’s easy to say that taxes will be deferred, but it’s hard to write that deferral into law in such a way that matches intent. It’s even harder for the farm’s operators to maintain that deferral. There are countless ways that “continues to be operated by the family” could run amuck, including how “family” is defined by the IRS vs. USDA. So, while the intent of deferring taxes may

be good, those deferred taxes can hang over an operation like a dark cloud. Deferred taxes can impact a farmer’s ability to secure operating loans, make organizational changes and run the farm profitably. The bottom line is that farmers must have flexibility to adjust their business in response to market signals from domestic and international consumers. When capital gains are imposed, the higher the tax, the more difficult it is for farmers to shed unneeded assets and generate revenue to adapt and upgrade their operations. Furthermore, the devil is always lurking in the details. While clean and simple on paper, a one-size-fits-all policy approach typically doesn’t work at the farm gate. That’s why ISA will actively and aggressively oppose these types of approaches in favor of flexibility.

unitedsoybean.org

KEEPING THE FUTURE OF SOYBEANS BRIGHT

From researching new uses for soybeans to identifying new markets for U.S. soy, the soy checkoff is working behind the scenes to create new opportunities and increase profits for soybean farmers. 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

Built by Iowa Farmers, Backed by Iowa Banks Iowa Banks

Farm Credit

$1 billion +

Having an Iowa bank on Main Street matters $70 million 3,093 loans 58,238 loans

94% of all Paycheck Protection Program loans to Iowa farmers were made by local banks. Over $1 billion of forgivable loans supporting Iowa’s rural economy.

PPP Loans to Iowa Farmers Source: U.S. Small Business Administration, 2021.

your

Paid for by Iowa Leaders in Education and Advocacy.

cooperative

soybean processor

www.agp.com

unitedsoybean.org

MAINTAINING OUR REPUTATION TO DELIVER

Whether shipping by river, road or rail, the soy checkoff is committed to ensuring America’s infrastructure is a significant advantage for U.S. soybean farmers. 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

Covid-19 Kinks Supply Chain BY BETHANY BARATTA

oined by leaders from the Port of Los Angeles, the Port of Long Beach, and the International Longshore and Warehouse Union, President Joe Biden announced efforts to address the stress confronting the global supply chain. The recent announcement of operating 24 hours a day, seven days a week was made to help address the stress confronting the global supply chain. The ports represented during the official announcement accommodate 40% of the shipping containers imported into the United States. The round-the-clock efforts mean moving cargo off ships and onto trucks and railcars to reach their destinations quicker. This is just one piece of the supply chain, says Mike Steenhoek, executive director of the Soy Transportation Coalition. But he’s hopeful these efforts will help to alleviate some of the pressure on the global supply chain. “We applaud any effort by the president and any of our national leaders to help address our supply chain challenges,” Steenhoek says. “We are certainly hopeful that the announced measure and others in the future will help mitigate some of the pressure.”

How we got here When the pandemic hit in the

spring of 2020, global manufacturing was significantly curtailed. Stimulus funding from the federal government—particularly in the United States—increased consumer spending, but that spending was disproportionately directed toward goods and away from services (vacations, movies, etc.), according to Steenhoek. This has imposed unprecedented pressure on manufacturing and the supply chains that service it. “When manufacturing came back online last year, it was confronted with this surge of demand,” he says. “Manufacturing and the supply chain have been catching up ever since.”

Increased demand pressure The biggest challenge confronting the U.S. supply chain is a shortage of labor; every mode of transportation is struggling to fill their labor needs and round-the-clock port operations will require additional labor, Steenhoek says. In the meantime, consumers continue to buy goods, which require transportation and reliance on the links in the supply chain. Companies have been negatively impacted by not being able to meet the needs of their customers due to supply chain shortages. As a result, these companies are purchasing inventory and components not just to meet

current demand but also anticipated demand. Because of the pressure to move increased freight with a given capacity, there has been increasing pressure on bringing in shipping containers full of consumer goods or component parts from China to the United States, unload them and return them to China where they will be reloaded for repeat journey. Therefore, there is an increased unwillingness for ocean vessel companies—the owners of the shipping containers—to allow them to deviate from this route to be loaded with agriculture or other production for export from the United States. Consider this: the current spot rate to ship a container from China to the West Coast of the U.S. is $16,004. The rate to ship a container from the West Coast back to China is $1,020. “If an ocean vessel company can be compensated almost 16 times for the front haul journey (China to the West Coast) vs. the back haul journey (West Coast to China), there will be a strong economic incentive to limit the amount of time a container is allowed to be transported to a distant location to be loaded with agricultural or other products that will pay less for the return journey,” Steenhoek says. “This lack of availability is causing significant stress for those U.S. agricultural exporters who utilize containers.”

Round-the-clock work at some of the United States' ports addresses one link of the global supply chain, says Mike Steenhoek, executive director of the Soy Transportation Coalition. 10 | NOVEMBER 2021 | IASOYBEANS.COM

HARVEST IS A SEASON OF CELEBRATION AND GRATITUDE As Warren Bachman completed his 60th harvest, he also felt pride.

IOWA SOYBEAN REVIEW® | 11

A Diamond Anniversary ISA leader celebrates his 60th harvest BY BETHANY BARATTA

ong before the Iowa Soybean Association (ISA) moved its center of operations to Ankeny, ISA District 8 Director Warren Bachman farmed the piece of ground that was transformed into the state’s soy headquarters. That was 60 harvests and several pieces of machinery ago. Bachman got his start farming through FFA. “As a freshman in high school, I planted and harvested my first crop,” he says. Bachman was raised on an acreage near Ankeny. His father was a rural mail carrier, and his mother worked at a local Farm Service Agency office. He valued helping his FFA chapter grow and harvest crops, eventually doing custom work and farming 50

acres when he graduated from Ankeny High School. He knew then he wanted to make farming his life’s work. “If it weren’t for my FFA advisor — Mr. Jim Meyer — I wouldn’t be farming,” he says. He and his former advisor, who farms near Odebolt, still connect, sharing farming stories and information about Roof Maxx, a soy-based product Meyer’s homeowner association board now uses to extend the life of its roofs. Sitting around the family’s kitchen table at their home in Osceola, Bachman reflected on the differences in farming today versus 60 years ago. In 1961, the average Iowa soybean field averaged 28.5 bushels per acre. Prices averaged $2.28 per bushel. In

2020, Iowa soybean farmers harvested an average 54 bushels per acre. Prices averaged $11 per bushel. However, the costs of inputs to grow the higher-yielding crops have also increased.

Diversification matters Diversification of income streams, Bachman says, has enabled he and his wife Linda to continue farming for several decades. Bachman’s owned tandem trucks since 1969, allowing him to haul the soybeans and corn off the farm and to the elevator or off-site storage in hopes of fetching better prices. In 1980, he started hauling seed corn, milo and bromegrass to and from Nebraska, Iowa, Kansas, South Dakota, Colorado and Texas.

Warren Bachman says farming is the only thing he’s ever wanted to do. In 2021, Bachman harvested his 60th crop.

12 | NOVEMBER 2021 | IASOYBEANS.COM

Historical photos of the Bachman farm near Osceola. While equipment has evolved throughout the years, his love of farming has been a constant. (Photos courtesy of the Bachman family)

For three months out of the year, Bachman was hired to cut wheat from the Oklahoma/Texas line all the way up to the North Dakota/Canada border. Linda was an elementary and high school music and journalism teacher and joined Warren for several wheat harvests. Bachman did this for 27 years and estimates he’s owned more than 50 combines in doing so. “You might spend 200 hours on a combine in Iowa, but during wheat harvest it was more like 1,000 hours per season,” Bachman says. “Time was of the essence, and you were 700 miles from home, so it was critical to have larger, reliable combines to get the job done.” His fleet of combines used for harvesting soybeans and corn on his farm hasn’t been as extensive, he says. However, he is a collector of antique tractors and owns more than 90 of them. Harvesting equipment has also changed in the past six decades, he notes. The first combine he used in high school was a John Deere, 2-row PTO pull type. He harvested corn with a MinneapolisMoline one row corn picker. The first self-propelled combine he bought was a 1969 Massey 410 with a 4-row corn head. The most recent purchase: a Case IH with a luxury cab. This year, he harvested with a 6-row corn head and 25-foot bean head.

Farming practices have also changed, better reflecting Bachman’s care of the soil and water quality. He utilizes no-till, cover crops, contour farming, terraces and waterways to promote soil health and water quality. “Our ground is pretty hilly here. So in 1984, we started putting terraces in, and we’ve built some almost every year since,” Bachman says. “With cover crops, we’re building soil health and organic matter.”

Full circle The connection to the farm that became the site of ISA came full circle six years ago when Bachman was elected as a district director of the farmer-led, farmer-focused organization. The experience has grown his understanding of how his checkoff dollars are spent and the many ways ISA is involved in programs that expand the marketing opportunities for the soybeans he raises on his farm near Osceola. Being involved in the Soy Transportation Coalition, for example, brings awareness and understanding of the importance of infrastructure in marketing soybeans globally. The use of soybean oil in biodiesel and renewable diesel expands

opportunities in selling soybean oil, once a glut on the market. “I can remember the noon farm report saying that nobody was taking soybean oil because there wasn’t a use for it,” Bachman says. “Now, that market has changed about 180 degrees.” Soybean oil makes up nearly 90% of the feedstocks used to produce biodiesel; biodiesel demand accounts for 13% of the net market value of soybeans, or $1.69 per bushel, when cash prices hit $13.

Grateful heart Bachman has taken steps toward retirement, giving up the wheat harvest and seed hauling business to focus on his farm. He isn’t sure how many harvests are in his future, but he’s grateful for the 60 he’s been blessed with. “I’m thankful that we’ve been able to grow, that I’ve never had to go to work,” Bachman says. “It’s work farming, but it’s what I wanted to do, so in a sense, I’ve never had to go to work. “Farming is the only thing I ever really wanted to do, and I was lucky enough to get to do it.” Contact Bethany Baratta at bbaratta@iasoybeans.com.

IOWA SOYBEAN REVIEW® | 13

The Janssen family taking advantage of warm weather to get a jumpstart on harvest near Arlington.

HARVEST 2021 WRAP UP BY JOCLYN BUSHMAN

ABOVE: ISA District 9 Director Tom Adam before wrapping up harvest near Harper.

14 | NOVEMBER 2021 | IASOYBEANS.COM

BELOW: ISA farmer member Logan Schweinefus admires his family's grain infrastructure (TLJ Grain) in Clermont.

Soybeans on a shaker bed in Clermont.

Wagons await the harvest on Tom Adam's farm.

ISA District 8 Director Warren Bachman glides across his soybeans field near Osceola.

Bud Jorgenson tracks harvest progress Grain mill near Festina. near the Missouri River in Fremont County.

IOWA SOYBEAN REVIEW® | 15

Sailing is Believing ISA Experience Class Tours Mississippi River by riverboat STORY AND PHOTOS BY AARON PUTZE, APR

hen it comes to understanding the economic and ecological importance of the Mississippi River, seeing is truly believing. The Iowa Soybean Association (ISA) hosted farmer leaders and staff for an 83-mile journey of the river. The handson learning opportunity took place Sept. 1-2 aboard the Riverboat Twilight, sailing from LeClaire to Dubuque. “Seeing the river from the river is a unique setting and perspective for farmers,” says ISA President Robb Ewoldt. “It’s truly a once-in-a-lifetime opportunity to go through a lock chamber and see how grain moves from the vantage point of being on the water.” The event, attended by 40 soybean leaders and ISA staff, culminated a year of discovery for farmers participating in the ISA Experience Class. Powered by Beck’s Hybrids, Bunge, REG and Latham Hi-Tech Seeds, Experience Class participants immerse themselves in four

16 | NOVEMBER 2021 | IASOYBEANS.COM

hands-on classes that provide a thorough understanding of the association and issues impacting the soybean industry. River navigation ranks high among topics affecting the profitability of soybean farmers. More than 60% of Iowa’s annual soybean harvest makes its way to the Gulf of Mexico courtesy of the Mighty Mississippi, including nearly every bushel grown by Ewoldt. “You can’t overstate the river’s importance to the bottom line for Iowa soybean farmers,” says the Davenport farmer from his perch aboard the bow of the riverboat. “Understanding the strategic value of the Mississippi and the investment required to keep it operational must be top-of-mind for growers as infrastructure has a lot to do with the price we receive for soybeans.”

Strategic importance The Mississippi is America’s secondlongest river (only the Missouri is longer). It’s also the chief river of the

second-largest drainage system on the North American continent (exceeded only by the Hudson Bay). From its headwaters in northern Minnesota, the river flows 2,320 miles, ending in the Mississippi River Delta in the Gulf of Mexico. All told, the river drains all or parts of 32 U.S. states and two Canadian Provinces. The Mississippi’s capability as an efficient transporter of freight is the result of an intricate system of locks and dams. The Upper Mississippi, stretching from St. Louis north to its origins at Lake Itasca in Minnesota, is home to 27 locks and dams located roughly 30-40 miles apart. Dams hold back water to form deeper navigation pools, providing a consistent 9-foot channel. Locks provide river vessels the ability to “step” up or down from one water level to another. Eleven locks and dams are located on the Mississippi River adjacent to Iowa’s eastern border.

The Mississippi River is a highly effective way to move a lot of freight in an eco-friendly way.

Tom Heinold oversees many of these locks and dams, along with much of what happens on and along the river as chief of operations for the U.S. Army Corps of Engineers, Rock Island District. A Massachusetts native and 30-plus-year veteran of the corps, Heinold says the Mississippi’s capabilities to transport aggregates, commodities, coal, fuel, wind turbines and other necessities risks being compromised by its rapidly aging infrastructure. “The river’s locks and dams were built in the 1930s and 1940s,” he says. “Put another way, it was constructed 80-90 years ago with a 50-year life expectancy. Do the math. The system is getting old.”

Reliability compromised As it ages, the river’s reliability as a conduit of Iowa-grown soybeans to international markets is compromised. Decaying locks create unsafe conditions for towing industry and lock personnel, jeopardizing consistency of service. It also makes barge navigation more inefficient. “When you put a piece of steel in the water for 80 years, you’re going to have some problems,” Heinold says. “If you shut down one lock, the river stops. There’s no other route. So, keeping the locks operational is paramount and that job is made more difficult when equipment deteriorates or becomes outdated.”

Federal funding of the Mississippi River’s transportation system provides resources for routine operations and maintenance, major rehabilitation and recapitalization. A minimum of $25 million is needed to refurbish a lock and dam for the next 25 years, Heinold says. Recapitalization projects, or construction of new infrastructure from the ground up, can cost more than $1 billion. The system’s current replacement value is estimated at $268 billion. An appropriation of 4% annually – or $10.7 billion – is needed to provide baseline maintenance and construction. “We’re currently investing around onequarter of one percent,” Heinold says. “It’s like buying a $30,000 car and spending $269 annually on maintenance for the life of the vehicle. That’s not going to be enough over the long haul.”

Timeless approach For Soy Transportation Coalition Executive Director Mike Steenhoek, an interesting feature about locks and dams is the consistency of the technology needed to operate them. “The concept hasn’t changed in nearly 200 years,” he said. “You have gates, chambers and valves. Whether it’s the locks in the south of France or Panama or the Mississippi, the same approach applies.”

Yet, the infrastructure needs constant attention and updates as barge flotillas become larger and longer. When constructed in the 1920s and ’30s, lock lengths were 600 feet. Now, 1,200 feet is needed to accommodate additional vessels. Of the 27 locks, only three have 1,200-foot chambers, Steenhoek says. To remain competitive, more chambers will need to be updated and lengthened and that will require additional and significant investments. To place a finer point on the Mississippi’s importance, Steenhoek reminded the riverboat guests that people in China buy pork-fed soybean meal made from soybeans grown in Iowa. They do so despite Iowa being located nearly 1,000 miles from the Gulf of Mexico and 6,500 miles separating Dubuque from Beijing. “So why isn’t Iowa a parochial enterprise rather than an international one?” he asks rhetorically. “It’s because of the intermodal transportation system that connects supply and demand, rather than them just looking at each other. “The moral of the story,” Steenhoek adds, “is farmer profitability isn’t just a function of supply and demand but connecting supply and demand. The Mississippi River plays a key role in that connectivity.” Contact Aaron Putze at aputze@iasoybeans.com.

IOWA SOYBEAN REVIEW® | 17

Rivers: Not Just for Exports Importance of utilizing inland waterways both outbound and inbound BY KRISS NELSON

s the price of input soars and their availability dwindles, transporting them in an economical and timely fashion is more important than ever. One of the most efficient, yet often overlooked, modes of getting inputs to Iowa farmers is the river system. “As farmers, we don’t realize the significance of what it means to bring those products back up the river,” says Jeff Jorgenson, immediate ISA past president and farmer near Sidney.

Buying inputs for the 2022 season highlights the river’s significance, Jorgenson says. “The time it really matters is right now,” he says. “The prices of our inputs are skyrocketing, and part of that is coming from the shipping costs.” Mike Steenhoek, executive director of the Soy Transportation Coalition (STC), says transportation plays a large role on input costs, including fertilizer. An underappreciated part of the

agriculture story, he says is how consequential the river is as a mode of transportation. "Rivers are a contributing part of our competitiveness – not just on the outbound, where we are ultimately exporting to other countries, but also on the inbound,” says Steenhoek. The STC was established in 2007 to promote a cost-effective, reliable and competitive transportation system that serves the agriculture industry.

Jeff Jorgenson, immediate past president of ISA and farmer near Sidney realizes the importance of our river systems especially in times of higher input prices.

18 | NOVEMBER 2021 | IASOYBEANS.COM

It’s comprised of the United Soybean Board, the American Soybean Association and 13 state soybean boards, including the Iowa Soybean Association. “Many times, checkoff investment in the STC has been a leverage tool to get funding for projects that are very beneficial to our soybean industry and in turn, to Iowa farmers,” says Jorgenson.

Keeping the rivers flowing Promoting the inland waterway system has been a consistent emphasis for the STC, with priorities placed on funding locks and dams and exploring ways to efficiently transport soybeans. Though $17 billion was earmarked in a Senate bill to ports and waterways in an infrastructure package, infrastructure and maintenance needs outstrip current funding, specifically on the upper Mississippi River. (When this issue of the Iowa Soybean Review went to press, the $17 billion was still up for debate.) “So many of those locks, while they have been maintained, were built and opened in 1939,” Steenhoek says. Maintenance of the locks and dams can go a long way in preserving the river’s usefulness. Still, additional resources are necessary to maintain and expand locks to accommodate longer barge-tows or flotillas without having to break them up into segments, he says. The U.S. Army Corps of Engineers has diligently maintained the river despite Iowa experiencing a drought. “There are occasions where you have high water levels and occasions

Checkoff dollars invested into the Soy Transportation Council have been benef icial in keeping the river an eff icient mode for transporting both exports and inputs.

with low water levels,” Steenhoek says. “Overall, the river has performed quite well this year despite inadequate rainfall.” Routine maintenance dredging has helped keep the rivers operational, Steenhoek says. “The U.S. Army Corps of Engineers has done an exceptional job this year of maintenance dredging on the river system,” Steenhoek says. The net result of this work has been the continuity of both upbound and outbound barge traffic. At least until recently. Over the past few months, a very prominent development has been the effects of Hurricane Ida in the Gulf of Mexico. “There has been a suspension of service going in and out of the lower Mississippi near New Orleans,” says Steenhoek. “We are emerging from that, but there are some issues we are going to be confronted with for some time.”

This not only causes problems for U.S. exports but also brings concerns about future fertilizer availability. “In addition to trade barriers imposed from countries that export fertilizer to the United States, there is the issue with the lower Mississippi River where there is less fluidity and throughput capacity,” says Steenhoek. “The problem of securing sufficient fertilizer becomes even more pronounced.” Available fertilizer supplies, coupled with higher commodity prices, are a driving force of higher input costs, which are up nearly 50% over last year, according to the University of Illinois. “I have probably spent more money on 2022 inputs at this point than I ever have in my career,” says Jorgenson. “Part of it is availability. Part of it was better price. You add all the factors up, and I think it’s not often enough we realize, as farmers, the importance of that movement northward of the fertilizers we use.” Contact Kriss Nelson at knelson@iasoybeans.com.

“Many times, checkoff investment in STC has been a leverage tool to get funding of projects that are very beneficial to our soybean industry and in turn, to Iowa farmers.” — Jeff Jorgenson, immediate ISA past president and farmer near Sidney IOWA SOYBEAN REVIEW® | 19

SOY SPOTLIGHT Meat, poultry and egg sales boost soy utilization and sales BY BETHANY BARATTA

.S. soybeans are not only sold to global customers via whole beans or crushed soybean meal, but to U.S. meat, poultry and egg producers. Soy packs a powerful protein punch, which makes it a preferred choice for livestock growers domestically and abroad. The Iowa Soybean Association’s investments through various partnerships help reach more customers globally, thus sharing the soybean story and ultimately selling more soybeans. Mac Marshall, vice president of market intelligence for the United Soybean Board (USB) and U.S. Soy Export Council, says these investments grow global opportunities. “We enjoy strong market share as a provider of soybeans, soy meal and oil because we made the early-stage

investment to market, promote and teach — to have the knowledge transfer and capacity building,” he says. Through the “Dare to Compare” marketing campaign, the world is learning about the value U.S. soy delivers with its nutritional profile, sustainability and other characteristics. “We’ve had success showcasing U.S. soy to nutritionists, formulators and buyers in overseas markets by demonstrating that U.S.-origin soybeans or soybean meal provides superior animal performance,” Marshall says.

‘Gobbling up soy’ The largest user of U.S. soybean products is the livestock industry, according to USB, with the poultry sector gobbling up more than half of U.S. soybeans each year.

Iowa is the largest egg-producing state in the nation. Iowa’s poultry and egg exports translate into 2.1 million bushels of soybeans, according to the USA Poultry and Egg Export Council (USAPEEC). In the U.S., domestic usage by the poultry and egg industry reached more than 1 billion bushels. The U.S. poultry industry exported more than 4 million metric tons of poultry and egg products in 2020, equivalent to 148 million soybean bushels. “Increasing demand for poultry outside of the United States creates opportunity for both U.S. poultry and egg exports as well as local poultry production, which creates opportunity and demand for U.S. soybeans,” says Jim Sumner, USAPEEC president and CEO. “A rising tide floats all boats.” (Continued on Page 22)

20 | NOVEMBER 2021 | IASOYBEANS.COM

“The aquaculture industry is growing fast across the world, and it’s become an important demand driver for soybean meal.” — ISA District 9 Director Tom Adam from Harper

IOWA SOYBEAN REVIEW® | 21

(Continued f rom Page 21)

Mexico is the top market for U.S. chicken, turkey and eggs. In 2020, egg exports to Mexico hit 6 million dozen, up 238% from 2019. The Iowa Soybean Association (ISA), through its financial contribution to USAPEEC, is helping to create more demand for U.S. soy specifically through a program in Mexico. The program works with the egg product processing industry in Mexico to create more ready-to-eat egg products. USAPEEC expects poultry and egg ingredients used in the new products to increase by at least 100 metric tons annually, creating additional demand for soybeans in the process. There doesn’t seem to be a slowdown in sight for U.S. broiler exports, which hit a record 2.15 million metric tons in exports the first half of 2021. This means expected growth in soybean exports through broilers. “We contribute the growth in exports to a good soybean diet,” Sumner says. “That’s exactly what it is. We talk

I N 20 20 , E GG EXP OR T S T O M E XI CO HI T

6 million dozen, U P 23 8 % F R OM 2 0 1 9.

22 | NOVEMBER 2021 | IASOYBEANS.COM

about chickens and turkeys as soybeans with wings.” Soybean meal is vital to poultry because of its digestibility and amino acid profile, USAPEEC notes. Soybean meal inclusion rates for poultry feed are more than 26% for broilers, 19% for laying hens and 31% for turkeys.

Central America are on a record pace

Pork exports

Iowa’s ranking as the top pork-

In 2020, U.S. pork exports set a record at 3 million metric tons, driven by purchases from China as the country battled African swine fever (ASF) in its domestic hog herd. Pork demand from China softened toward the end of the year as it began rebuilding from ASF, but pork exports have remained strong globally, says Joe Schuele, vice president of the U.S. Meat Export Federation (USMEF). “We’re pretty confident we can match the performance in 2020 because we’ve always focused on market diversification,” Schuele says. U.S. pork exports to Mexico and

producing state in the country, and

this year, while demand has also strengthened in Japan, South Korea, Colombia and the Philippines. Every pound of U.S. pork exported represents the utilization of about 0.91 pounds of U.S. soybean meal. Considering the soy utilization rate,

the availability of soybeans, ISA’s investment in USMEF is well placed. “ It’s very forward-looking for soybean farmers to understand who their market is and to understand that to have strong demand for their product, Schule says. “They have to look at how the product is used and how to keep the U.S. livestock industry growing and vibrant,” he says. “Soybean industry leaders see red meat exports as a real catalyst for growth and profitability in the livestock industry.”

EVER Y P OUND OF

U.S. pork exported

R EP R ESENT S T HE U T I L IZ ATION OF ABOUT 0. 91 POUNDS OF U.S. S OYBEAN M E AL.

Growing opportunities Soybean meal comprises about 50% of aquaculture diets. (It’s the most used protein source in aquaculture feeds worldwide.) Because soybean meal is high in protein and readily digestible, it’s a valued feed for aquaculture growers. “The aquaculture industry is growing fast across the world, and it’s become an important demand driver for soybean meal,” says ISA District 9 Director Tom Adam from Harper. The U.S. is a net importer of fish, but the aquaculture business is growing, says Kenlon Johannes, executive director of the Soy Aquaculture Alliance. ISA’s investment in the alliance helped spur the growth of global aquaculture systems and soy demand. For example, investments in the In-pond Raceway Aquaculture system in China in 2017 helped modernize and expand the country’s aquaculture industry, and the technology is spreading to other countries. Using

this technology in the U.S. could build domestic aquaculture production, Johannes says. Any demand is good for Iowa’s soybean farmers, says Adam, who also serves as treasurer for the Soy Aquaculture Alliance. “While aquaculture might be not be big in Iowa, global aquaculture is important to Iowa soybean farmers because of the potential.” Aquaculture production is projected to reach 109 million metric tons in 2030, up 32% over 2018, according to the Food and Agriculture Organization.

Helping farms grow Helping farmers grow their livestock farms builds demand for soybean products. That’s why ISA’s investment in the Coalition to Support Iowa’s Farmers (CSIF) makes sense. Since 2004, CSIF field coordinators have helped more than 4,900 Iowa farm families determine the best location for livestock barns, being mindful of rules, regulations and neighbors.

ISA’s investment in CSIF means farm visits are available to farmers confidentially and at no cost. “The investment from the Iowa Soybean Association is going toward helping the livestock industry grow, often bringing the next generation of farmers back to the farm,” says Brian Waddingham, CSIF executive director. A one-stop shop for Iowa’s livestock farmers, CSIF connects them with the most up-to-date rules and regulations regarding livestock farming, opportunities to recognize their peers for being good neighbors, and assistance in replacing or adding a windbreak or vegetation to their farm. The Coalition also hosts events for farmers to learn about the opportunities in Iowa agriculture including an aquaculture conference slated for January 2022. For more information, go to www.supportiowasfarmers.com Contact Bethany Baratta at bbaratta@iasoybeans.com.

IOWA SOYBEAN REVIEW® | 23

Hen House High-Rises Cage-free facilities represent a new era BY JOSEPH HOPPER

he chicken coop has changed. Today’s cage-free egg laying farms not only look different from the outside but on the inside, too. Some egg farmers playfully call them “chicken condos.” “These are not your mom and dad’s chicken barns,” says Dr. Craig Rowles, director of cage-free operations for Center Fresh’s parent company Versova. Center Fresh is constructing its newest cage-free facility west of Sioux Center. It represents not only a demand for cage-free eggs but also a boost for Iowa soybean farmers. Changing consumer preferences and new regulations have contributed to the demand for cage-free products, according to Rowles. At the same time, the animal agriculture industry is adapting to approaches of how best to raise livestock and poultry. At Versova, cage-free demand first began to escalate around 2014.

24 | NOVEMBER 2021 | IASOYBEANS.COM

At the Center Fresh site west of Sioux Center, the investment is being made where the company began — at the family farm, which was first established in the 1970s. Three, four-story housing systems are being built to meet the natural needs of its future feathered tenants. Interior lighting will simulate sunrise and sunset. The birds descend to the lower levels during the daytime hours, where they walk around, eat and drink. The modern facility allows operators to simulate dusk by dimming the lights in a certain sequence, thus enabling the chickens to determine where they’ll spend the night inside the

barn. During the nighttime hours, the upper levels on the floors accommodate the birds’ instinct to climb upward as it gets dark. “The nest boxes are in shady and quiet areas, so they’re drawn to that location,” Rowles says. The floor’s design allows the eggs to roll onto a conveyor belt, where each egg begins its journey to the plant. Besides new cagefree housing, the complex includes a breaking facility, supplying liquid egg products to the commercial food industry. “You wouldn’t see eggs from this farm in a store,” Rowles says. “You’re going to see them in cake mixes, hotels, restaurants, hospitals or commercial food establishments.”

Three, four-story cage-f ree laying facilities are being built west of Sioux Center by Center Fresh. They will accommodate 1.5 million birds. Construction is slated for completion in 2022.

A diet of soy The amenities at the Sioux Center location will include a protein-rich diet courtesy of Iowa’s soybean farmers. The average chicken will consume about 18 pounds of soybean meal per year. “We look at our corn and soybean meal producers as being important suppliers for what we’re trying to accomplish, which is bringing added value to the product they’re trying to produce,” Rowles says. The appetite of the 50 million chickens residing in Iowa amounts to 450,000 tons of soybean meal, or about 300,000 acres of soybeans production annually. “The poultry market consumes approximately 50% of all domestically consumed U.S. soybean meal,” says Grant Kimberley, Iowa Soybean Association (ISA) senior director of

market development. ISA District 1 Director Brent Swart, who farms in Clay County, says the construction of facilities like the one in Sioux Center is important. As farmers work to maximize soybean production, Swart says they rely on increased demand for soybeans. “Any time we can have more demand for soybeans, it’s a big deal for Iowa’s soybean farmers,” Swart says.

Doing the right thing The facility’s first flock of birds will arrive in spring 2022. More than two dozen jobs are being created at the new facility. In the past decade, Versova’s cage-free production has grown by more than 6 million hens. With the company’s cage-free expansion underway at Center Fresh in Sioux Center and Hawkeye Pride in

Corwith, continued growth is expected. “The egg industry is evolving,” says JT Dean, president of Versova. “We are being deliberate in our plans to ensure we can meet the current and future needs of our customers. The future of egg production depends on having the infrastructure and capacity at the ready as states and customers transition to cage-free egg supplies to meet legislative or market deadlines.” “I’m proud we are doing it in a way that meets our customers’ expectations and can do it in scale and way that I have every confidence in that we’re doing it the right way, day in and day out,” Rowles says. “I couldn’t be more proud of what we’re doing. These are generational investments we’re making for the future.” Contact Joseph at jhopper@ iasoybeans.com.

“I couldn’t be more proud of what we’re doing. These are generational investments we’re making for the future.” — Dr. Craig Rowles, Versova

IOWA SOYBEAN REVIEW® | 25

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

Rainy Day Musings

t’s early morning and still dark out. Like lyrics to my favorite song, rain is falling rhythmically on the old tin roof of the farmhouse. My mind, which usually has a million things under consideration, is peacefully aware of the moment. “This is about as happy as I get,” I say to my husband. “Why?” he asks. “Does the rain inspire you to write?” “Without a doubt,” I respond, starting downstairs to put on the coffee. Like some sort of sensory trigger, the sound of rain takes me back to my youth. Long before I knew I wanted to make a living out of stringing sentences together, I’d fill journals with words. I was always writing. I grew up blessed, and when I read now what I wrote so many years ago, I notice conscious awareness of my good fortune. Life on the farm has always made me happy. Bless the rain this morning for that reminder. I’m not sure how much rain has fallen overnight, but it will surely offer a day of reprieve to the farmers in my area. Under

perfect conditions, you’ve been running hard for weeks. Harvest is ahead of usual, and yields are practically insane. It’s been fun to talk to you guys the last few weeks as antidotal reports have been coming into the Iowa Soybean Association’s office. Lots of you are crediting timely rains, but most of you are still a little bewildered by the high yields. I was riding with my dad as he harvested soybeans off his century farm a few weeks ago. He was calling out the numbers from the monitor, shaking his head in disbelief. We talked about all the factors that could explain the bin-busting yields, but we decided magic was the logical answer. Or, at least, I came to that conclusion. Nevertheless, it’s fun to have good numbers. In this issue of the Iowa Soybean Review, we feature a farmer who recently celebrated his 60th harvest. Warren Bachman’s journey will be relatable to many of you, and I hope his story will give you a chance to reminisce on your own farming legacy. In the spirit of the Thanksgiving season, we

rejoice on behalf of all those who have had the good fortune to enjoy this calling for so many years. In next month’s issue of the magazine, we will talk about what’s next. First and foremost, we plan to examine where this year’s crop will go and how the Iowa Soybean Association will help get it there. We will also start looking at the 2022 planting season. Our in-house experts have some tips and tricks for you to consider while making your end-of-year purchases. One more thing … I had a reader call me with an idea that intrigued me enough to pass it on to you guys. The farmer said he’d love to read about what you’re using as an auger tractor. Are you running good equipment in the field and pulling out an old, crappy tractor to run your auger? What’s your set-up look like? Send me a picture and tell me the story. It’s probably a pretty good topic to use as a conversation starter. Wishing you and yours a blessed Thanksgiving. Stay well, my friends.

IOWA SOYBEAN REVIEW® | 27

THE BEST BUSHEL IS THE NEXT BUSHEL.

ASGROW.COM ALWAYS READ AND FOLLOW GRAIN MARKETING AND ALL OTHER STEWARDSHIP PRACTICES AND PESTICIDE LABEL DIRECTIONS. Asgrow and the A Design®, Bayer and Bayer Cross are registered trademarks of Bayer Group. ©2021 Bayer Group. All Rights Reserved.

Iowa Soybean Review | November 2021

Articles inside

The Last Word

Hen House High-Rises

Soy Spotlight

Rivers: Not Just for Exports

Sailing is Believing

Harvest is a Season of Celebration and Gratitude

Covid-19 Kinks Supply Chain

Policy Update

Executive Insights