South Dakota Soybean Leader—Winter 2023/ 2024

Winter Issue 2023

SOUTH DAKOTA

SOYBEAN LEADER A publication of the South Dakota Soybean Association

2023 Winter Check-In Market Report Yield Contest Winners International Buyers Visit South Dakota Soybean Producers Soybean Meal in the Dairy Industry ASA Corteva Young Leaders

Winter Issue 2023

SDSL

1

BELIEVE YOU CAN. FOR WE LIVE BY FAITH, NOT BY SIGHT. II CORINTHIANS 5 : 7

2

Winter Issue 2023

SDSL

President Kevin Deinert, Mount Vernon First Vice President Chad Schooley, Castlewood Second Vice President Jeff Thompson, Colton Secretary Drew Peterson, Salem Treasurer Brent Greenway, Mitchell Directors Chad Nelsen, Viborg Chad Schooley, Castlewood Derrick Scott, Geddes Dan Nigg, Sisseton Jamie Johnson, Frankfort Jesse King, Toronto ASA Corteva Young Leaders 2022-23 Tanner Hento, Avon 2022-23 Jeff Kloucek, Tabor 2023-24 Ross Tschetter, Bridgewater 2023-24 Riley Schoenfelder, Parkston Industry Representatives Kari Vander Wal, South Dakota Soybean Processors Joe Schefers, Bayer Crop Science Terry Schultz, Mustang Seeds Travis Bunde, Raven Industries Jeff Behrens, Pioneer American Soybean Association Brandon Wipf, Huron Jordan Scott, Valley Springs Paul Casper, Lake Preston Editor/Design Director Mariah Kessler, SD Soybean Communications Director South Dakota Soybean Leader is published four times a year by the South Dakota Soybean Association, 5000 S. Broadband Lane, Suite 100, Sioux Falls, SD 57108 Phone: 605-330-9942. For address corrections contact South Dakota Soybean Leader at 5000 S. Broadband Lane, Suite 100, Sioux Falls, SD 57108. www.sdsoybean.org | sdsa@sdsoybean.org Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first of the month preceding publication. In consideration of the acceptance of 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.

PRESIDENT’S OUTLOOK

By Kevin Deinert, President of the South Dakota Soybean Association

H

ow are we doing, farm family?

As we look back over this past harvest and year, we are reminded again of how no two years are alike. Through the swings of weather and yields, Mother Nature reminded us that we can expect the unexpected. Wherever you may live, I hope that, above all, you ended the year safely.

KEVIN DEINERT SDSA President

Turning to the soybean world, there is no shortage of work to be done. With the year coming to an end and a new state legislative session about to begin, rest assured that your directors have been busy advocating for you. Of notable wins this past year on a state level, SDSA helped lead the effort to stop the initiative in Sioux Falls that would have killed slaughter expansion.

Federally, we first look at the Farm Bill. Our message continues to be the same and persistent: make sure that farm programs are adequately funded, crop insurance stays in place, and continue to fund efforts to expand market share. Also, we at SDSA maintain that the foreign ownership of land issues be handled on the federal level. We continue to work closely with Congress so that farmer interests are addressed. It is a tough issue, but nevertheless, we at SDSA have been at the forefront so that farmers' way of life can be maintained.

Did you know that your SDSA membership also includes membership in our parent organization, the American Soybean Association? That is just one of the many benefits of becoming a member but also one of the most crucial. Having that connection allows us as an organization to put our interests at the forefront of the national scene. Working hand in hand with ASA, we can tackle very large issues and champion the American farmer so that hindrances to our way of life may be overcome.

Please watch for an invite to our upcoming Producer Shop Talk events. These are localized gatherings that will provide you with the latest information and updates to be successful in your operation, plus an opportunity for you to connect with us and share what’s happening in your community and on your operation. Details will be published soon on our website: www.sdsoybean.org.

As you read this, I know many of the holidays may have passed, but I would still like to wish you a Merry Christmas and Happy New Year. May we remember the reason for the season and cherish the times with our loved ones. Personally, thank you for having me as your President this past year, and I look forward to more good things to come for our organization!

Sincerely,

Kevin Deinert Kevin Deinert

Paying checkoff does not automatically make you a member of SDSA. SDSA has membership dues.

Advertising Inquiries Garrett Gross, AGE Media (605) 251-6370 | garrett@agemedia.pub www.agemedia.pub

Winter Issue 2023

SDSL

3

SDSL

Winter Issue 2023 Volume 12 Number 4

SOUTH DAKOTA SOYBEAN LEADER A publication of the South Dakota Soybean Association 3

President’s Outlook

5

Letter From the Chairman

6

Soy Industry News

9

Letter from the Executive Director

10

Market Report: Inflation and Interest Rates Continue to Dominate

12

Winter 2024 Ag Weather Forecast

13

Yield Contest

16

International Buyers Visit South Dakota Soybean Producers

19 South Dakota Soybean Checkoff Cultivating a Sustainable Future with $2.5 Million Investment in POET Bioproducts Center 20 South Dakotans Promote Soybeans, Other Commodities in Southeast Asia 21

Biodiesel Fuels the Sioux Area Metro: New Bus on Display

22

Legislative Update

25

Flying Forward: Start the New Year in the Growth Mode

26 Hungry for Truth Ambassador Pairing: Cattle Rancher Calli Williams, Learns the Ropes of Crop Farming and Soil Sampling with Agronomist and Farmer Jeff Kloucek 28 Hungry for Truth: Unveiling the Journey of Soybeans from Farm to Food and Beyond 31

Soybean Meal in the Dairy Industry

32

Increasing Soybean Meal Use in Aquaculture Diets

33

ASA Corteva Young Leaders

34

Re-introducing Soybean Meal into Cattle Diets

PAGE 16

International Buyers Visit South Dakota Soybean Producers

4

PAGE 19

SD Soybean Checkoff Cultivating a Sustainable Future with $2.5 Million Investment in POET Bioproducts Center

PAGE 21

Biodiesel Fuels the Sioux Area Metro: New Bus on Display

Winter Issue 2023

SDSL

INVESTING CHECKOFF DOLLARS

DAVID STRUCK, Chairman of SDSRPC

LETTER FROM THE CHAIRMAN

By David Struck, Chairman of SDSRPC

D

ear Soybean Growers and Industry Partners,

I trust this letter finds you well during the winter season, a time when many soybean farmers embark on global trade missions to connect with soybean buyers. As Chairman of the South Dakota Soybean Research and Promotion Council, I am honored to share the stories of the hardworking individuals who contribute to the success of our soybean industry.

Our soybean market is influenced by various factors, both at home and abroad. Weather patterns, trade relations, and global economic conditions all shape the dynamics of commodity markets. As soybean growers, it's crucial for us to actively navigate these influences to ensure the continued success of our industry.

A cornerstone of our strategy lies in the thoughtful investment of soybean checkoff dollars. These funds, collected from soybean producers, play a vital role in supporting market development and beneficial investments for soybean growers. We prioritize diversifying market development to mitigate risks associated with global market fluctuations.

During the winter months, soybean farmers from South Dakota and beyond engage in important trade missions to connect directly with soybean buyers worldwide. These face-to-face interactions are invaluable, allowing our farmers to communicate directly with those who purchase the crops they work so hard to cultivate. These missions serve dual purposes—maintaining existing relationships and exploring new trade opportunities.

Winter Issue 2023

SDSL

In addition to diversifying international markets, our checkoff dollars are carefully invested in various domestic initiatives, including sectors like renewable fuels, energy, and livestock.

These strategic investments aim to diversify our market outlets and ensure a resilient industry that can handle challenges from a dynamic global market.

It's important to highlight that the foundation of this market development is the farmers growing and delivering soybean crops. Strengthening markets creates a stable foundation for our industry, providing a buffer against external uncertainties.

We’re positioning ourselves at the forefront of innovation and sustainability, further enhancing the long-term viability of soybean farming.

I want to express my gratitude for the unwavering commitment from soybean growers. Your dedication fuels our efforts to navigate the ever-evolving global market. Together, we can build a robust industry that not only sustains our livelihoods but propels us towards a future of growth and prosperity.

Sincerely,

DavidStruck David Struck

Chairman of SDSRPC

5

INVESTING CHECKOFF DOLLARS

Soy Industry NEWS

Etc. Expo for Her in Sioux Falls Maggie Vander Laan and Valerie Willson of SD Soybean attended the annual Etc. Expo for Her at the Sioux Falls Convention Center in October. They had over 500 entries to win the Vitamix mixer.

There was a great turnout of ladies who always look forward to the Hungry For Truth booth!

POET Bioproducts Grand Opening

On Oct. 11, Chairman Stuck, Vice-Chairman Iverson, Johnna Ringkob, Mariah Kessler, and Jerry Schmitz participated in the Grand Opening of the POET Bioproducts Center at the SDSU Research Park in Brookings, S.D. The Center will provide structure for businesses to collaborate with university scientists to develop cutting-edge, applied biotechnology products and scale-up processes to bring new products to market more efficiently.

The South Dakota Soybean Checkoff invested $2.5 million to be paid over five years. The lawn in front of the Center is soy-turf with the SD Checkoff logo embedded. The Checkoff also has a display on the wall of the two-story atrium.

Read more about the POET Bioproducts Center on page 19.

6

SD School of Mines Bioprocessing Ribbon Cutting

SD School of Mines and Technology held a ribbon cutting for their Bioprocessing facility on Oct. 25 in Rapid City. The facility is called Composite and Nanocomposite Advanced Manufacturing Biomaterials (CNAM-Bio). They have begun several projects and are anxious to hear suggestions for new uses on-farm and for industry from farmers.

Soybean was a topic of discussion among many of the participants. Jerry Schmitz, Executive Director or SDSRPC and SDSA, was invited to participate on behalf of South Dakota soybean farmers and had discussions with SDSM&T staff, researchers, and local legislators.

The Harvest Night by The Stockyards Ag Experience Harvest Night, a fundraiser for the Stockyards Ag Experience, was held Thursday, Oct. 19 at the Meadow Barn near Harrisburg, S.D. The SD Soybean Checkoff was the dinner sponsor, and SD Pork provided pork loin for the meal. Jerry Schmitz, Executive Director of SDSA and SDSRPC, spoke on behalf of South Dakota soybean farmers.

Winter Issue 2023

SDSL

FFA Ag Issues Teams Present to SD Soybean Staff in Preparation for Their Competitions In November, several local schools’ FFA teams presented to SD Soybean staff leading up to the state’s annual FFA Ag Issues Forum. Competing in Ag Issues requires a team of seven students, in which the team members adopt roles as business owners and ag producers, learn how to research current topics, and take a stance on either the pro or con side. One student serves as a moderator,

Parker FFA

while the rest of the team strives to present both sides of their topic equally while simulating a town council meeting. The team must then be prepared to take and answer questions from the audience.

Following each presentation, SD Soybean staff members were invited to ask questions and share comments and recommendations.

Beresford FFA

West Central FFA

SD Soybean Visits Capitol Hill with Clean Fuels Alliance America On November 6th-8th, members of SD Soybean traveled to Washington, D.C. for the Clean Fuels Membership Meeting. While in D.C., they attended meetings and listened to panels about the growth and future of biodiesel, renewable diesel, and sustainable aviation fuels (SAF).

Pictured left to right: Brad Shimmens (Clean Fuels), Chad Schooley, Senator

John Thune, Derrick Scott, Tim Ostrem, and Rachel Porting (Clean Fuels).

Clean Fuels Alliance organized visits on Capitol Hill for each implementing incentives for biodiesel, state in attendance to meet with their senators and renewable diesel and SAF, biomass-based representatives regarding policies for biodiesel and diesel as a sustainable marine fuel, volumes renewable diesel. under-counts of biomass-based diesel by the EPA, and the Farm Bill.

The four hot topics discussed in the panels included

Winter Issue 2023

SDSL

7

Soy Industry NEWS (Continued)

SDSU Swine Day

CHOOSE THE GIFT OF QUALITY, AFFORDABLE HEALTH PLANS FROM PEOPLE YOU TRUST.

HEALTH PLANS FROM PEOPLE YOU TRUST

Health Plans

Contact your local Farm Bureau Financial Services agent for more details.

8

SDSU held its annual Swine Day Nov. 7 with approximately 200 people participating. Keynote speakers were Dr. Steve Meyer, Partners for Production Agriculture and Dr. Frank Mitloehner, Professor and Air Quality Specialist, Department of Animal Science, UC Davis. Dr. Meyer spoke of the potential for pork across the globe, yet the difficulty hog producers are trying to navigate today. Inputs are incredibly high, causing losses for producers. Dr. Meyer shared his vision that livestock producers, pork in particular, should be announcing to the world that livestock production methods and practices play a significant role in reducing and sequestering carbon.

SD Soybean Attends Ag Education Event for National Farmers Day On Friday, October 13, the Agribusiness Division of the Greater Sioux Falls Chamber of Commerce held its annual National Farmers Day at the Barn event. This family-friendly gathering featured a pick-and-take pumpkin patch, exhibits, treats, and opportunities to learn more about how agriculture impacts the community. South Dakota Soybean hosted an educational table, distributing soy crayons and soybean activity coloring books.

Winter Issue 2023

SDSL

INVESTING CHECKOFF DOLLARS

LETTER FROM THE EXECUTIVE DIRECTOR

By Jerry Schmitz, Executive Director of South Dakota Soybean Research and Promotion Council & South Dakota Soybean Association

60-80

%

of soybeans grown in South Dakota leave the state. That means we need demand, outside of South Dakota, for 138 to 184 million bushels this year. So long as there is unrestricted competition and price discovery, the greater the demand, the higher the average price will be. The Soybean Association clears the tracks by working with local, state, federal and international lawmakers to reinforce unrestrained competition, price discovery, and freedom to farm. That provides the opportunity for the soybean train to efficiently reach buyers across the world. But like a good crop, soy demand doesn't just happen. Farmers make it happen!

The SD Soybean Checkoff (SDSRPC) is tasked with creating demand. Goal one is maintaining relationships with existing customers by addressing their needs and concerns.

Goal two is seeking new buyers for both the meal and oil. The SDSRPC partners with many organizations seeking new markets worldwide. The United States Soybean Export Council identifies the strengths, opportunities and challenges for soy in each country to prepare a roadmap for future sales. That includes feed uses for livestock, poultry and aquaculture, as well as oil requirements for human, fuel and industrial uses.

Buyers are reminded of the beneficial traits unique to South Dakota soybeans that offer them economic advantages our competitors cannot. Things like natural cold storage, amino acid composition, and sustainable practices employed by SD farmers.

Buyers are often unaware of these benefits until they are educated about them. SDSRPC members develop materials to share that information and then serve as disciples to distribute and teach it.

Whether a duck feed buyer from Taiwan, a poultry feed supplier in Morocco, or a swine feed buyer in the Philippines, all are excited to visit with the farmers who produce the soybeans.

That is why SDSRPC board members travel abroad to several countries across the world and why buyers reciprocate by visiting Winter Issue 2023

SDSL

farms in South Dakota. Foreign buyers take great pleasure in visiting with individual farmers on their South Dakota farms and then inviting and showing those farmers their business overseas.

Checkoff board members are always looking to the future to find new markets and new uses.

They partner with other states, organizations and academia for research and development seeking innovative uses of soy for industry, energy, home, medical and biological uses. Your checkoff dollars help to fund those activities.

JERRY SCHMITZ Executive Director of SDSRPC and SDSA

The key to soybeans' tremendous growth and economic value has been farmers' willingness to donate their time to develop their crop. Without that personal investment and drive, industry would likely prioritize the economics of individual businesses before the crop itself and may choose other alternatives. Since the early 1900s, farmer volunteers have fostered the conditions that drive soy demand. Without their contributions, the market would stagnate, and competitors for protein and oil would capture our market.

Without farmer volunteers, the success of our industry and many of the good things past generations have gifted us is in peril. Our ancestors recognized the importance of collaborating with neighbors to build a successful future. While family was most important, they recognized volunteerism's significant role in building and maintaining the fabric of our society and took time away from family to nurture their community.

Please volunteer your time to maintain the success of our communities, churches, industry, state and nation.

9

INVESTING CHECKOFF DOLLARS

Market REPORT

INFLATION AND INTEREST RATES CONTINUE TO DOMINATE

By Tregg Cronin for the South Dakota Soybean Leader

One can barely have a conversation these days without the topic of inflation and interest rates coming up, especially when talking with farmers. As this year’s crop gets put away into storage, interest rates and the cost of storage should be part of the equation.

A

t the last meeting of the Federal Reserve in midNovember, the Open Market Committee voted to hold benchmark rates steady at a 22-year high of 5.25-5.50%. This allowed 10-year treasury yields to soften slightly holding around 4.6% at the time of this writing. This is germane to our grain markets because the higher borrowing costs being felt at every level inherently makes storing grain more expensive. In addition, the opportunity cost of storing that grain also goes up, meaning farmers need more futures and/or basis appreciation to justify storing.

treasuries, both considered essentially “risk free,” are currently paying in the neighborhood of 4-5% annually.

Using round numbers, and calling cash soybeans $13.00 TREGG CRONIN per bushel, producers can earn Grain Marketing Director at Cronin Farms, Inc. 19-20 cents per bushel by selling soybeans and holding the cash for four months in these “risk free” securities.

At the time of this writing, the spread between the January and March soybean futures contracts was around 13 cents per bushel, covering roughly 50% of the cost of storage and interest.

Full carry is calculated at just over 26 cents per bushel. What this means is a producer needs to expect at least 10-15 cents per bushel of basis appreciation, combined with that 13 cent board spread, to justify storing beans to March. Yet, what many producers skip over is the fact that carries are not earned unless they are sold. Until the March futures portion is locked in, both basis and spread risk are still on the table. Said another way, if the futures risk is left open, and the board declines in price, the 13 cent carry currently available gets essentially wiped out.

Combining all the aforementioned arithmetic yields several avenues for producers to ponder. Selling cash soybeans and putting the money in “risk free” securities earns between 19-20 cents per bushel. Putting the soybeans in storage, assuming the 13 cent carry to March is locked in, requires another 6-7 cents to equal the cash option. But to fully cover the physical costs of storing soybeans, a further 5-6 cents is needed in basis appreciation. If a producer doesn’t go the cash route, and does not lock in current board spreads, a futures rally of 20 cents is needed to yield the same outcome assuming basis and spreads remain unchanged. In this environment of heightened volatility, counting on anything to remain static is a major gamble.

Farmers need to consider all these scenarios to arrive at the best destination for a crop which could go down as the most expensive to produce in history.

Adding complexity to the higher cost of storing grain, the opportunity cost portion is currently higher than at any time since 2008. Money market accounts or straight government 10-Year Real Interest Rate 4.0 3.5 3.0

Percent

2.5 2.0 1.5 1.0 0.5 0.0 -0.5

10

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

2022

Winter Issue 2023

SDSL

( YO U ) You’re where the rubber meets the road.

And the engine. And the interior.

All soybean farmers, including you, are busy replacing petroleum with your soy oil.

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.

Winter Issue 2023

SDSL

Moving Soy Forward.

Moving You Forward.

©2022 United Soybean Board [61977-24 9/22]

11

INVESTING CHECKOFF DOLLARS

WINTER 2024 AG WEATHER FORECAST

By Eric Snodgrass for the South Dakota Soybean Leader

T

he upcoming winter 2024 is anticipated to be influenced by a strong El Niño, which historically leads to milder winter days. However, this El Niño's strength has been overestimated, and its influence may be moderated by other weather patterns, reducing confidence in long-range forecasts.

Using history as a guide, Figure 1 shows the composite temperature and precipitation patterns for each El Niño since 1960. Figure 2 shows the forecast precipitation and temperature anomalies for Dec 2023 – Feb 2024 from the ECMWF (top) and IRI Probability Forecast System (bottom).

I don’t have a lot of ERIC SNODGRASS confidence in these long range Nutrien’s Principal Atmospheric Scientist predictions due to recent failures by the models to capture the Spring 2023 Drought in the Midwest, the Fall Drought in the Mississippi Basin, and the temperature patterns we’ve experienced in November and early December.

The limitations of current predictive models suggest caution in relying on these long-range forecasts. The focus is now monitoring Winter’s progress preparing for highly anomalous weather patterns.

CONCERNS FOR GROWERS ARE CENTERED ON SIX KEY ISSUES: 1. South America: Southern Brazil is recovering from floods while the northern and eastern regions are grappling with drought and heat impacting the soybean crop. The extent of damage and the need for replanting are unclear. Persistent drought in Argentina's fertile areas in October and November linger and jeopardize crop yields.

Fig. 1: Composite Temperature and Precipitation Anomalies for El Niño Events since 1960.

2. US and Europe Weather: A mild winter is expected in many parts of the U.S. and Europe, attributed to El Niño and warm ocean temperatures in the North Atlantic and Pacific. While mild days prevail, brief and intense Arctic cold air outbreaks could disrupt energy markets.

3. Panama Canal Delays: Drought has lowered water levels in the Panama Canal, affecting its operation. Without relief in the next 45 days, shipping disruptions could extend into the next summer due to the region’s dry season beginning in January.

Fig. 2: Forecast Temperature and Precipitation Anomalies from the ECMWF for Dec 2023 – Feb 2024.

4. Mississippi River Levels: The river remains low, with soil moisture in the surrounding basin in the lowest 5th percentile.

This situation mirrors last year’s and significantly affects barge traffic.

5. U.S. Drought Expansion: Over 50% of the U.S. is experiencing drought, which has intensified this fall. If winter doesn’t bring enough precipitation, the 2024 season could begin with inadequate soil moisture, raising the risk of continued drought conditions.

6. Climate Impact of Volcanic Eruption: An underwater volcano eruption near Australia in January 2022 released massive amounts of water vapor into the stratosphere. This could enhance the greenhouse effect, potentially elevating global temperatures above average for the next decade.

Fig. 3: Forecast Temperature and Precipitation Anomalies from the IRI Multi-Model Forecast System for Dec 2023 – Feb 2024.

12

Winter Issue 2023

SDSL

INVESTING CHECKOFF DOLLARS

YIELD CONTEST "The South Dakota Soybean Yield and Quality Contest, an annual celebration of excellence in soybean farming, is a testament to the dedication and innovation of our state's agricultural community. This contest, sponsored by the South Dakota Soybean Checkoff and South Dakota Soybean Processors, and expertly managed by the South Dakota Soybean Association, not only rewards top producers but serves as a crucible for advancing soybean management practices," shares Johnna Ringkob, SD Soybean Market Development and Research Director.

As the results of the quality contest are assessed, Kari Vander Wal from SD Soybean Processors remarks, "Analyzing the outcomes of the South Dakota Soybean Yield and Quality Contest is not just about recognizing excellence; it's about delving into the intricacies of quality that define our soybeans. It's a journey of discovery that allows us to continually refine our

Name Brock Hanten Toby Johnson Dan Stewart Roger Kramer Andrew Schaeffer Josh Neuharth James Hora Brian Schmidt

Group Group 0 Group 0 Group 1 Group 1 Group 2 Group 2 Group 3 Group 3

Name Makenna Graham Makenna Graham Cooper Vander Wal

Group Group 0 Group 1 Group 2

Winter Issue 2023

SDSL

production techniques, ensuring that South Dakota remains a beacon of quality in the soybean industry."

Joe Schefers, emphasizing the importance of the data contributed by producers, notes, "The data generated from this contest is a goldmine for soybean farming.

It's not just numbers on paper; it's a collective wisdom, a shared experience that propels our industry forward.

The insights gained from the contest empower producers with the knowledge to make informed decisions, ultimately shaping the future of soybean agriculture in South Dakota. It's a collaborative effort that underscores the significance of unity and knowledge-sharing in our farming community."

SD Soybean Yield and Quality Contest winners were awarded at the annual banquet on December 6, 2023 in Sioux Falls. To learn more and enter the 2024 contest, visit www.sdsoybean.org.

2023 South Dakota Soybean Quality Contest Results

Award 1st Place 2nd Place 1st Place 2nd Place 1st Place 2nd Place 1st Place 2nd Place

County Deuel Moody Lake Moody Yankton Hutchinson Hutchinson Turner

Brand Croplan Asgrow Integra Integra Pioneer Pioneer Becks Asgrow

Variety 0842E AG09XF3 41502N 41812N P25A16E P29A19E 3117XF AG31XF3

2023 South Dakota Soybean Youth Quality Contest Results Award 1st Place 1st Place 1st Place

County Moody Moody Brookings

Brand Asgrow Asgrow Mustang

Variety AG09XF3 AG18XF1 21C544

Oil 18.9 19.1 18.7 17.9 18.9 18.9 19.0 18.6

Protein 33.7 33.2 34.8 35.3 34.0 33.9 35.1 34.6

ProOil Value 52.6 52.3 53.5 53.2 52.9 52.8 54.1 53.2

Oil 19.1 19.2 18.1

Protein 33.4 33.0 32.6

ProOil Value 52.5 52.2 50.7

Mark your calendars for Soy100 on March 7, 2024, in Brookings, SD. Dr. Cheryl Reese, agronomy and soil science instructor from SDSU will be addressing soybean trends and ways to reach 100-bushel soybeans! More information to come online at www.sdsoybean.org.

13

14

Winter Issue 2023

SDSL

Winter Issue 2023

SDSL

15

INVESTING CHECKOFF DOLLARS

INTERNATIONAL BUYERS VISIT SOUTH DAKOTA SOYBEAN PRODUCERS A pair of international trade delegations — one representing Japan and South Korea; the other, Thailand and Indonesia — toured soybean farms in several states throughout the Upper Midwest this summer. These delegations comprised individuals responsible for purchasing, procurement, supply chain management, market analysis and more.

The tours were sponsored and hosted by soybean farmers through their checkoff, including the South Dakota soybean checkoff. They provided tour participants with access to farmers as well as a firsthand look at production practices, soybean quality and more during their visit. The latter tour was organized by Northern Soy Marketing, an alliance of state soybean checkoff organizations in South Dakota, North Dakota, Minnesota, Nebraska and Wisconsin.

IN-THE-FIELD LEARNING

“I think we take for granted as producers what the end users know about how we raise soybeans over here,” said Arne Harstad, a farmer and agronomist from Wilmot, South Dakota. “Even though they work with soybeans over there every day, a lot of them had never been to a soybean field until they got over here.”

Harstad provides agronomy services to Bud Metz of Metz Farms outside Peever, South Dakota. So when Bud and his father, Bob, were asked to serve as tour hosts for more than a dozen individuals comprising the trade delegation from Thailand and Indonesia, they tapped Harstad to join them to answer any agronomy questions their visitors might have.

“Quality is a really big question for them,” said Harstad.

“They're interested in oil content; they're interested in protein content. A lot of them were really impressed with how clean our soybean fields were and how much we were able to produce a quality product over here.”

South Dakota soybean producers and international buyers meet in front of Metz Farms building.

He added that his agronomic perspective was sought after for questions about pressures this year’s soybean crop faced, both in the form of fungal or insect pressure or the pervasive effects of drought and drought-like conditions. “Drought has really affected our area in Northeast South Dakota quite a bit this year,” he said.

As a former member of the South Dakota Soybean Association Board of Directors, Harstad is no stranger to these sorts of trade tour visits. He finds them to be quite helpful all around. “It gives a farmer a look at how big of a global system they're involved in. All too often, we unload our semis at the local grain depot, and that's really the last we think about it,” said Harstad. “And this gives farmers the opportunity to realize how much more happens to their grain after it leaves their possession.”

16

Winter Issue 2023

SDSL

BUILDING CONNECTIONS HERE AROUND THE WORLD

In addition to the inherent educational component, the tours help American soybean growers build strong working relationships with international buyers and extend gratitude on behalf of others within the industry for their continued support.

Dinner at Morrie’s Steakhouse in Sioux Falls

Trade delegation members stopped by Valley Springs as well to visit with father-and-son duo Kevin and Jordan Scott, both of whom have served as board members for the South Dakota Soybean Association and the American Soybean Association.

Another highlight of the South Dakota leg of this trade tour was an evening meal hosted at Morrie’s Steakhouse in Sioux Falls, which proved to be a fitting way to further connect the lines between producer and consumer while building relationships through food and fellowship.

LEARN MORE ABOUT SOYBEAN TRADE TOURS

Opportunities such as this are important for soybean farmers, according to Harstad. “I think it is absolutely great,” he said. “By becoming involved, you actually learn what our checkoff dollars are being used for and how it is trying to promote the industry.”

For more information about trade tours and getting involved in this and other key initiatives of the soybean checkoff, please contact the South Dakota Soybean office at 605-330-9942.

0% FINANCING

ON SEED & CROP PROTECTION BOOK 1. Seed by Nov 17, 2023 2. Fertilizer by Jan 22, 2024 3. Crop Protection by Jan 22, 2024

APPLY

by Nov 17, 2023

0% FIXED INTEREST

ON SEED & CROP PROTECTION UNTIL NOVEMBER 30, 2024 (CHS Capital Accolade Standard Variable Interest Rate from 12/1/24 - 2/10/25)

8.25% VARIABLE INTEREST

(CHS Capital Accolade Standard Variable Interest Rate less Agtegra investment of 1.25%)

ON FERTILIZER UNTIL NOVEMBER 30, 2024 (CHS Capital Accolade Standard Variable Interest Rate from 12/1/24 - 2/10/25)

Customers must hold or grow fertilizer, seed and crop protection purchases from last year to qualify. A minimum of 100 acres worth of inputs is required. Deadline to apply is November 17, 2023. Loan matures February 10, 2025. 0% fixed interest rate until November 30, 2024. CHS Capital Accolade Standard variable interest rate from December 1, 2024 - February 10, 2025. Variable interest rates are based on the CHS Capital Accolade Standard Base Rate, which was 9.5% as of August 1, 2023. Rates are published at www.agtegra.com/financing. $100 application fee. $850,000 loan maximum or more with additional approval.

Winter Issue 2023

SDSL

17

BELIEF DEFINES WHERE WE GO IN LIFE. IT TAKES FAITH TO BE A FARMER, AND OUR ABILITY TO DO IT RELIES ON IF WE BELIEVE WE CAN.

18

Winter Issue 2023

SDSL

INVESTING CHECKOFF DOLLARS

SOUTH DAKOTA SOYBEAN CHECKOFF CULTIVATING A SUSTAINABLE FUTURE WITH $2.5 MILLION INVESTMENT IN POET BIOPRODUCTS CENTER

POET Bioproducts Center Ribbon Cutting on Oct. 11, 2023

A

ribbon cutting on October 11 officially opened the POET Bioproducts Center at South Dakota State University’s Research Park in Brookings. The venture brings together researchers from SDSU and the South Dakota School of Mines in Rapid City with industry partners to get bioprocessing and bioproducts research to the marketplace.

A nonprofit organization called Dakota BioWorx was set up by the South Dakota Board of Regents to provide specialized expertise in the POET Bioproducts Center “to enable the center to do what it’s intended to do,” said Daniel Scholl, who chairs the board of Dakota BioWorx. In an interview with the South Dakota Soybean Network at the facility’s ribbon cutting, Scholl, who is also SDSU’s vice president for research and economic development, said Dakota BioWorx will bring together “both the private sector and the public sector for partnership on developing new bioproducts for the marketplace.”

The POET Bioproducts Center provides a space for private enterprise to partner with South Dakota Mines and SDSU scientists to do proof-of-concept work that will show commercial viability.

It’s that level of collaboration that impresses Brookings County farmer and Dakota BioWorx board member David Iverson.

“To me, it’s incredible to have so many partnerships from universities to private industries to commodity groups all coming together to see the importance of creating products from the products that we produce on our farm and adding value to that,” said Iverson.

That observation is echoed by David Struck, chairman of the South Dakota Soybean Research and Promotion Council (the South Dakota Soybean Checkoff), adding that the center’s opening is good news for producers of soybeans, corn and other crops that have value in food and industrial applications.

“It’s going to sustain prices; it might even improve them,” said Struck, who farms near Wolsey, South Dakota. “It’ll be good for the economy of South Dakota locally and innovations that come out of here will probably be used around the world.”

The POET Bioproducts Center’s location is an opportunity not Winter Issue 2023

SDSL

only for farmers but for related business coming to the state, according to Jerry Schmitz, executive director of the South Dakota Soybean Association and South Dakota Soybean Checkoff. Schmitz is excited for soybean growers because of the potentially greater soybean value resulting from the center’s output.

“I think what we’re looking at is not only new products for the world, but we’re looking at new businesses across South Dakota,” said Schmitz, “because the products are right here and now the new ideas and development are right here.”

Soy-based Turf—POET Bioproducts Center

“What this undertaking represents is a means of inventing new ways to add value to soybeans and components of soybeans,” added Scholl, “thus creating greater value for South Dakota soybeans by generating products that the global marketplace is looking for in the biosciences sector.”

Scholl stressed the importance of the relationships with the South Dakota Soybean Checkoff and other organizations that helped financially, calling them “absolutely critical, fundamental, pivotal to this project.”

Soy-based innovative products are showcased in the entryway of the POET Bioproducts Center

The almost two years of construction on the POET Bioproducts Center began in November 2021. The 45,000-square-foot facility was made possible with $20 million in legislative funding, $5 million from POET and $2 million from South Dakota Corn. The South Dakota Soybean Checkoff is providing $500,000 annually for five years – a total of $2.5 million – and the state of South Dakota committed a yearly $500,000 for operational costs.

“It’s the vision of the soybean industry leadership making it possible to innovate, to create new high-value products from soybeans that have given us this wonderful place to work with and an organization to work through,” said Scholl. “Without that leadership, I don’t think we’d be here today.”

19

INVESTING CHECKOFF DOLLARS

SOUTH DAKOTANS PROMOTE SOYBEANS, OTHER COMMODITIES IN SOUTHEAST ASIA

S

outh Dakota soybean farmers were represented on a recent USDA-led mission to Southeast Asia. The trip culminated in Singapore where USDA Trade and Foreign Agricultural Affairs Under Secretary Alexis Taylor held a telephone news conference giving her observations about the mission. After leading five such missions so far this year, Under Secretary Taylor says she feels that U.S. agriculture products are in high demand around the world.

“We are known as a quality supplier; there is confidence in the U.S. label when it is on packaging – for safety, for reliability. And so, we are a desired trading partner,” said Under Secretary Taylor.

“But I think the other impression that has really come out to me is we need to be showing up in these markets. If they are new and emerging markets for us, they are for others in the world as well, and our competitors are here and they’re showing up and they’re working on building these relationships as well. And so, we need to be equally as aggressive.”

The USDA characterizes export opportunities for U.S. food and farm products to Southeast Asia as “expanding,” referring to the Association of Southeast Asian Nations (ASEAN) collectively as the world’s fourth-largest market.

South Dakota Department of Agriculture and Natural Resources Secretary Hunter Roberts was part of the mission and spoke about Dawn Sheier of Salem who was also on the mission. Along with her work on the World Initiative for Soy in Human Health, Sheier is a South Dakota representative on the U.S. Soybean Export Council (USSEC). Roberts says Sheier’s Southeast Asia connections and knowledge are appreciated.

“She’s done a good job meeting with USSEC, looping me into some of their meetings, talking about potential clients, potential processors that they’re already using, and opportunities for advancement,” said Roberts. “South Dakota’s very strong in seeing growth in soy, dairy, pork, corn, DDGs (dried distillers’ grains) and ethanol. Those are our largest exports to this region, so certainly coming here has been a great opportunity to further embolden, further create those relationships, and build on those relationships that our country largely already has, but we have opportunities to continue to grow those and speak on behalf of South Dakota agriculture and U.S. agriculture.”

Under Secretary Taylor pointed out facets of the mission that have the potential to grow Southeast Asian demand for South Dakota soybeans. “I met with an entrepreneur here in Singapore who is working on expanding farm-raised fish for the Singaporean market and they’re partnering again with U.S. companies to import soybeans, corn, U.S. feed ingredients for that farm-raised fish sector,” she said. “So again, I think there are real practical things going on in these markets that are benefiting South Dakota farmers that we saw this week.”

Among Roberts, Taylor, and many others, the mission included leaders from two other state agriculture departments, Montana Deputy Agriculture Director Zach Coccoli and California Food and Agriculture Secretary Karen Ross.

Hunter Roberts and Dawn Scheier

20

“Coming here has been a great opportunity to further create those relationships and build on those relationships that our country largely already has,” Roberts concluded about the mission, “but we have opportunities to continue to grow those and speak on behalf of South Dakota agriculture and U.S. agriculture.”

Winter Issue 2023

SDSL

INVESTING CHECKOFF DOLLARS

BIODIESEL FUELS THE SIOUX AREA METRO:

NEW BUS WRAP ON DISPLAY

T

he Sioux Area Metro (SAM) of Sioux Falls, S.D. used a B20 biodiesel blend in its fleet of 26 fixed route buses and 13 paratransit buses from April to October 2023.

B20 is an 80/20 blend of diesel and biodiesel. Biodiesel is a cleaner, renewable fuel produced from diverse, sustainable feedstocks including vegetable oils like soybean oil, used cooking oils, and animal fats. The City’s bus fleet has been successfully using the fuel blend since April.

Switching to a biodiesel blend was a seamless transition that achieves multiple benefits immediately. Using B20 this year decreased SAM’s use of petroleum diesel fuel by 14,216 gallons, helping the city reduce greenhouse gas emissions by 15% compared with straight petroleum diesel.

A SAM bus with an eye-catching soy-biodiesel-themed wrap began transporting passengers in November. The wrap will remain on the bus for 12 months.

Fleets throughout the country are utilizing biodiesel blends to help meet their sustainability goals, making a positive environmental impact today that lasts for future generations.

B20 is a drop-in fuel, meaning that neither the existing fleet vehicles nor the refueling equipment require any modification to use the fuel. This makes biodiesel an affordable option for fleets without an up-front investment in new technology.

Approximately one-half of the biodiesel produced in the U.S. is made from soybean oil. Soybeans are 80 percent meal and 20 percent oil. Biodiesel production uses only the oil portion, leaving nutritious protein available for food and feed. Agriculture is South Dakota’s No. 1 industry and soybeans contribute approximately $3 Billion to the state annually. Biodiesel is homegrown energy brought to you by South Dakota soybean farmers.

SAM partnered with the South Dakota Soybean Checkoff for this B20 pilot program. Through this partnership, the city received a 25cent discount on each gallon of B20 purchased.

“This project has proven that biodiesel is a valid option for fleets and a more environmentally friendly fuel with no modifications to vehicles needed. Biodiesel also helps with the economic stability of South Dakota farm families and communities,” said David Struck, South Dakota Soybean Research & Promotion Council Chairman and fourth-generation farmer from Wolsey.

From April to October, SAM’s bus fleet drove 359,675 miles on 71,083 gallons of B20. Making the switch to B20 means: Winter Issue 2023

SDSL

This bus is traveling on soy-based Goodyear Tires.

The Biodiesel replaced 14,216 gallons of petroleum diesel wasn’t used.

Carbon emissions were reduced by more than 310,848 lbs.

The carbon reduction by this one fleet for 6 months is equivalent to taking 31 gasoline-powered passenger vehicles off the road for one year or driving 361,460 fewer miles in a gas-powered car. The environmental benefit is equivalent to planting 2,331 trees this year and having them absorb carbon through 2033.

21

LEGISLATIVE UPDATE Provided by Lorin Pankratz

A

s I look out the window, I see a wonderful blue sky and jet vapor trails. This makes me think some 30,000 foot observations are in order as the 2024 Legislative Session approaches.

Some think the carbon pipeline proposal could be over followed by the Public Utilities Commission ruling, Navigator suggesting they would do some more thinking and the Summit folks seemingly confused. Then Gevo announces, without the pipeline, their project is stuck in the fence. Part of their plan all along, they just forgot to tell anyone.

Recently, Gevo invited a number of ag groups and others to what most thought would be an informational meeting. Instead, the ag groups were told they needed to support the carbon pipeline, ethanol and Gevo or Gevo would go somewhere else.

Not a new tactic.

Shifting gears—a proposal for a new prison on state owned land has created a new land use dispute in Lincoln County. Land and homeowners in the area are upset and wonder why there was not more upfront disclosure. A lawsuit is filed and the opportunity for discussion stalls. Sound familiar?

Disputes over a wind farm in Walworth County and livestock development and solar energy in McCook County put our county commissioners between those who champion economic development and local residents and landowners.

A common theme, in my opinion, is economic development vs. property rights. Each side being right and the other wrong. No room for discussion. Then our elected officials are tasked with picking a side and/ or trying to work toward some reasonable resolution.

22

Not every encounter needs to be antagonist or vitriolic, yet that seems to be the approach of choice. If you sense a pattern, it would seem prudent to have some strategic leadership on these projects while maintaining the integrity of property rights.

Fiscally, the state government has been officially weaned off the federal stimulus of the last few years, and Governor Noem is indicating her next budget will be more austere. She and the legislature will have much to talk about.

LORIN PANKRATZ

These are issues that may come up during the next legislative session. Rob Skjonsberg will be taking on the day-to-day lobbying effort for the South Dakota Soybean Association as I continue my effort to retire.

Rob and I first met when he became Chief of Staff to newly elected Governor Mike Rounds. Rob then worked in private industry for several years before joining the Rounds for U.S. Senate campaign and becoming Chief of Staff for Senator Rounds.

Rob is no longer full-time with Senator Rounds, allowing him the opportunity to do outside consulting. As a cow-calf producer, he loves working with agriculture groups, and I look forward to working with him and the Board.

Winter Issue 2023

SDSL

Has your bank been helping farmers succeed since before South Dakota was even a state?

No? We have.

And we’re ready to help you, too.

FirstDakotaAg.com

Winter Issue 2023

SDSL

23

™

WHAT THE INSIDE OF

YOUR GRAIN BINS SHOULD LOOK LIKE Tri-States Grain Conditioning systems will help you remotely monitor your grain with our temperature cables, save on energy costs and improve your overall grain storage.

TSGCINC.COM

PROTECTION IN THE PALM OF YOUR HAND.

your

cooperative

soybean processor

agp.com 24

Winter Issue 2023

SDSL

INVESTING CHECKOFF DOLLARS

FLYING FORWARD:

START THE NEW YEAR IN THE GROWTH MODE Provided by Don Norton

W

hen the announcement came out in 2021, I had this “full circle of life” feeling because, in the mid-1980s, I was involved in the research and development effort of the B-2 Spirit – the original stealth bomber developed by Northrop Corporation.

It was an exciting and challenging time, and there were many leadership lessons for me that came from that project.

Some of those lessons are discussed by leadership legend John Maxwell in his book Leadership Gold. This is a great book to study as you grow your leadership skills. He presents 26 lessons from his decades of leadership experience.

These lessons are important to soybean growers, commodity board members, and anyone who leads a farm, ranch, or family.

One of those lessons is to bring people along with you as you move your organization forward.

In 2009, one of the leaders of the B-2 program told an audience at Whiteman Air Force Base that the importance of developing people was an important lesson for him in a major complex engineering project: “…put the right people in the right place, and they'll make you proud and they'll make themselves proud.” I think about the facets of modern agriculture – science, new technology, marketing - ag enterprises can certainly be considered complex projects.

Developing people is just as important to a successful farm as it is to an innovative airplane.

Winter Issue 2023

SDSL

That’s one of the reasons I applaud the South Dakota Soybean Genesis Leaders Program. This program provides a deep foundation in developing leadership skills and increasing industry knowledge.

Another leadership concept from John’s book is asking the right questions. Every day, the B-2 development team solved problems and challenges by asking the right questions. I believe the Soybean Research and Development Council is asking some great questions: What is the next market for our soybeans? Can soybeans be used to make tires, or sneakers, or road treatment? How can we improve growing practices? Asking the right questions grows ideas and insights, creates new markets, and helps provide more secure farming enterprises that build legacies.

But to be the best that you can be, you need to ask questions of yourself. John Maxwell suggests starting with “Am I Investing in Myself?” Do you consider yourself better at the “technical side of leadership” or the “people part of leadership?”

What are you doing to improve the areas where you have weaknesses? John suggests that you need to keep learning to keep leading, and taking a genuine interest in others and their personal growth creates an environment of collaboration and synergy.

As we begin to embrace 2024, let me encourage you to “fly forward” and grow your leadership capabilities. Invest in yourself and develop the people who surround you. Make the New Year a place where the sky’s the limit!

Don Norton is a Strategic Leadership Consultant and a Maxwell Leadership certified trainer and speaker. He has served as the CEO of the South Dakota and Illinois Agricultural Leadership Programs. This is a special time for South Dakota.

Ellsworth Air Force Base will be the home of the B-21 Raider stealth bomber later this decade. What a great opportunity for economic development at Ellsworth and in the neighboring communities!

25

INVESTING CHECKOFF DOLLARS

HUNGRY FOR TRUTH AMBASSADOR PAIRING:

CATTLE RANCHER CALLI WILLIAMS, LEARNS THE ROPES OF CROP FARMING AND SOIL SAMPLING WITH AGRONOMIST AND FARMER JEFF KLOUCEK Having open conversations about food and farming with South Dakotans and the farmers who grow it is what we do. In fact, that’s what Hungry for Truth is all about. We had an exciting opportunity to connect first-generation cattle rancher Calli Williams with Jeff Kloucek, a corn, wheat, and soybean farmer and agronomist from Scotland, S.D., to chat about farming in Scotland, soil preservation, and much more. Below, Calli shares her learnings from her farm visit.

I

n true South Dakota fashion, the wind was blowing 30+ mph, and Mother Nature couldn’t decide if it was going to rain or not.

Rain or shine, there is always work to be done on the farm, so regardless of the weather, I was excited to hit the road and head toward Scotland, South Dakota, to visit with Jeff Kloucek.

Upon arriving, I apologized for bringing rain during harvest season. Jeff just smiled. We aren’t in control of the weather, and Jeff seemed to know that all too well. Jeff then asked me the big question of the day… “What would you like to learn today?” As someone who typically doesn’t struggle with finding my words (just ask my husband – or parents), I was speechless. I then told Jeff I am a cattle girl, through and through. I have never planted or harvested row crops so I was up for anything. And just like that, we were off!

We started walking through the cornfield Jeff’s cousin had been combining. Jeff pulled an ear of corn off the stalk to explain the moisture level, and how they know when corn is ready to be combined. Then we made our way to the combine!

On the first lap through the field combining corn, I had already learned so much from Jeff. I felt like a sponge trying to soak up as much knowledge as possible. Jeff explained the efforts he and his cousins have made to restore nutrients in their soil, the remarkable technology available to assist with fertilizer applications, and other enhancements they have made to their ground in an effort to improve their soil and yields.

26

Winter Issue 2023

SDSL

As the combine filled, his cousin Dave pulled up next to us with the grain cart so the combine could empty the corn while Jeff continued combining. Jeff said the grain cart was a new purchase for this harvest season, and he was excited about it! The grain cart allows them to empty the combine while continuing to combine, rather than stopping what they are doing to either empty the combine in a parked semi at the end of the field or travel to the main farm site to unload in a grain bin.

Jeff currently farms with his two cousins. Dave said they had about 90 acres left to harvest. He was hoping to have it done before the weekend, not only because of the predicted rain but also because of the colder temperatures in the forecast and the upcoming pheasant hunting season.

Jeff said he had two little girls anxious to get to a pumpkin patch over the weekend, so they better be done combining soon!

Goodwin, S.D. farmer Todd Hanten and M.B. Haskett Chef, Michael Haskett

Jeff and his cousins primarily raise corn, soybeans, alfalfa, and wheat. In addition to farming, Jeff works full-time as an agronomist with NutrienAg. Jeff had printed a few soil maps to show me the kind of information he gets from soil samples, and what fertilizer prescriptions do for crop farmers. When I asked about no-till versus till farming, Jeff didn’t hesitate to grab a shovel and dig up a piece of sod to give me a hands-on demonstration of the soil composition of no-till ground.

To find more Hungry for Truth Ambassador farm visits, go to hungryfortruthsd.com

He also had his soil sample equipment with him to show me how they collect soil samples from the field. Jeff is a wealth of knowledge. When he shared soil maps from the Scotland and Tabor areas, I asked questions about soil in the Avon area. My husband and I are fortunate to summer half of our cow-calf pairs on our family ground near Avon, so I was curious how the Magnesium and Calcium levels of the soil in that area affected grass for grazing cattle versus growing crops. I mentioned how well the calves do in Avon, and how we can see a difference at weaning time on which calves were in Avon versus which calves were grazing pasture near Artesian.

Check out our last edition’s Ambassador Pairing where local restaurant M.B. Haskett Chef, Michael Haskett, joins Todd Hanten, a soybean, corn, and cattle farmer from Goodwin, S.D., to chat about farming, the impactful work farmers do, and much more.

In addition to Jeff’s wealth of knowledge with soil health and crop consulting, I could hear the excitement in Jeff’s voice as he shared about the program he and his wife Emily recently completed. Jeff and Emily were a part of the American Soybean Association Corteva Agriscience Young Leader program. This program opened the door and showed Jeff the power of South Dakota farmers’ voices in our communities, our state, in D.C., and beyond.

After a great visit with Jeff and learning more about soil health and row crops, it was time to hit the road and let the crew get back to combining. I was less than ten miles down the road when Mother Nature decided it was time to downpour. She conveniently waited until our farm visit was over.

I just hope they were able to get those final 90 acres harvested, so Jeff and his family could enjoy the pumpkin patch!

Thank you to Jeff Kloucek for letting me tag along during the busy harvest season!

Ambassador Program Connecting and giving real people access to a real South Dakota farm to learn, observe, ask questions, engage with farmers, and see first-hand how South Dakota farming operations go round.

Read all our Ambassador Pairing stories online at hungryfortruthsd.com/ ambassador-program

Or scan QR code

Winter Issue 2023

SDSL

27

INVESTING CHECKOFF DOLLARS

UNVEILING THE JOURNEY OF SOYBEANS FROM FARM TO FOOD AND BEYOND As South Dakota’s harvest season closes out, a quiet transformation is underway. A crop that has long been a staple of agriculture, soybeans, have reached the end of their journey in the soil. But their story is far from over.

Ever wondered where soybeans go after they are harvested? Join us as we unravel the path of soybeans from harvest to their diverse destinations with the help of Kari Vander Wal from South Dakota Soybean Processors.

THE MANY FACETS OF SOYBEAN PRODUCTION Soybeans, the versatile legumes that they are, find their way into a myriad of industries and products.

South Dakota, often referred to as the "Land of Infinite Variety," embraces this versatility with open arms. From conventional to organic, from food to fuel, soybeans have a tale to tell at every stage of their journey.

First things first, let’s discuss the role of organic farming in South Dakota. With the growing demand for organic products, some South Dakota's farmers have embraced organic soybean production. According to USDA Census data, the number of growers in South Dakota that have adopted organic practices is rising. In 2019, there were 21 farms growing organic soybeans in South Dakota. This number rose to 35 by the year 2021, and the number of acres used for organic production of soybeans grew by nearly 50% in that timeframe.

When it comes to taking that soy to sale, South Dakota does not have enough production for a processing facility dedicated to organic processing. When organic soybeans are processed, they end up in many of the same products that conventionally-grown soybeans do. If all other ingredients were grown organically, the organic soybeans will likely end up with a “USDA certified organic” label on the final product.

SOYBEAN PROCESSING IN SOUTH DAKOTA South Dakota is currently home to three different soybean processing facilities. SD Soybean Processors has locations in Volga and St. Lawrence, and Ag Processing (AGP) in Aberdeen. The SDSP facility in St Lawrence does however crush non-GMO soybeans, another speciality market, and do have their Organic

28

Certification, but to date have not crushed organic soybeans.

Having local soybean processing facilities benefits the farmer, but it also benefits our local and state economy.

The more local facilities we have closer to the farmers who transport the soybeans to the processor equals the less freight and fuel costs, and less time to transport for the farmers.

WHAT SOY PRODUCTS ARE PRODUCED IN SOUTH DAKOTA? At SD Soybean Processors, approximately 60 pounds are harvested per bushel. Of those 60 pounds, 44% is meal, 11% is soybean oil, and 5% is hulls. Once the mighty beans are transformed into these ingredients, they are off to the next stage of their journey for further processing.

WHAT ARE SOYBEAN MEAL & HULLS USED FOR? Soybean meal and hulls, which together account for around 80% of production, are both used for livestock feed. Soybean meal is a high-protein, nutritious ingredient that is included in feed rations for a variety of livestock. Swine, poultry, dairy cattle, beef cattle, and even aquaculture operations utilize soybean meal as a part of their diet. Soybean meal is sent to a feed mill to be rationed into the proper ratios for each type of livestock based on their unique needs. Or in some cases, it may even be transported directly to a farm from the SD Soybean Processor facility. To learn more about how nutrition plans are custom-developed for livestock, check out our recent blog with Amanda Eben, Swine Feed Sales Specialist.

Winter Issue 2023

SDSL

Soy hulls are a valuable coproduct produced as a result of the soybean crush process.

The hull serves as a highly digestible fiber source that is also used in livestock feed rations specifically for dairy cows, beef cattle, and sheep.

Soybean hulls are also sent to a feed mill to be portioned into rations appropriate for animal nutrition.

WHAT IS SOYBEAN OIL USED FOR? Soybean oil accounts for the remaining 20% of production, but don’t let the smaller portion of production convince you that this product is less valuable. Soybean oil is the key ingredient for over 1,000+ other uses of soybeans. At SD Soybean Processors’ facility in Volga, a majority of the soybean oil that they produce goes through their refinery and leaves the facility as food-grade. From there, it is sent off to a variety of different partners for further production of food products and sustainable goods.

Food Industry: Soybean oil finds its way into various food products. From salad dressings and cooking oils to candy and gum, soybean oil transforms into food products that many of us consume on a daily basis.

Renewable Fuel: The transportation industry also benefits from soybean oil when it is converted into a renewable and environmentally friendly fuel source, reducing carbon emissions.

Industrial Applications: Soybeans contribute to the creation of a plethora of industrial products, including plastics, adhesives, tires, and even shoes.

Winter Issue 2023

SDSL

29

DISCOVER THE BENEFITS OF A LENDER THAT

WORKS FOR YOU.

Customer-owned, mission-driven, a valued financial partner.

We deliver the financial strength to help you grow, the competitive rates to give you an edge, and cashback dividends that deliver something more. Discover a lender with the expertise, products, and services you’ll find nowhere else.

Learn more at 800-884-FARM.

Agriculture Works Here.® FCSAmerica.com

Jon Z. / customer since 2001

Terms apply. See website for details.

30

Winter Issue 2023

SDSL

INVESTING CHECKOFF DOLLARS

SOYBEAN MEAL IN THE DAIRY INDUSTRY

S

oybean meal has a well-earned reputation as the gold standard for supplemental protein in livestock nutrition. As a highly digestible source of essential amino acids, it has long been the primary driving force behind domestic and international soybean demand.

Checkoff-sponsored research has helped secure this top-tier status for soybean meal, providing the necessary data to demonstrate its value and, at the same time, guiding livestock producers on optimal inclusion rates in rations.

And while the poultry and swine industries remain primary consumers of soybean meal, there’s an often overlooked sector within animal agriculture that represents an increasingly large piece of the pie: the dairy industry.

INCREASED SOYBEAN MEAL CONSUMPTION IN THE DAIRY INDUSTRY

According to United Soybean Board (USB), dairy cows accounted for 14.4 percent of domestic soybean meal consumption in 2022. That figure was more than double what it was in 2012 and trailed consumption levels of the U.S. swine industry by just a few percentage points.

USB reports that checkoff research and innovation have also paved the way for high oleic soybean meal in dairy rations because of HO soybeans’ countless benefits to a cow’s health.

Most dairy producers view soybean meal as a more cost-effective protein source than synthetic alternatives, which require additional processing in order to pass through a cow’s rumen during digestion.

It also contributes to improved health outcomes and stronger milk production totals.

Winter Issue 2023

SDSL

An additional factor playing into meal inclusion in dairy rations is the way it contributes to an overarching sustainability narrative.

Not unlike those of us in the soybean industry, dairy producers are being asked to demonstrate how well they care for the earth and its resources. Utilizing soybean meal that is grown responsibly and is locally sourced and processed reflects a commitment to sustainability that drives the dairy industry forward.

DAIRY DEMAND FOR SOYBEAN MEAL IMPACTS SOUTH DAKOTA

South Dakota’s dairy industry has grown significantly along the I-29 corridor over the past two decades. USDA data reveals that South Dakota ranked first among all states in year-over-year production growth by percentage in 2022. Total in-state milk production has roughly doubled since 2013.

This industry growth bodes well for soybean producers in South Dakota.

For one, it contributes to increased local demand, which, in turn, helps preserve more soybean value in-state. Second, it secures future demand when the state’s crushing capacity doubles with the addition of a new soybean processing plant near Mitchell in 2025. Finally, it provides additional competition alongside the state’s swine and poultry industries to support higher demand for soybean meal.

ANIMAL AGRICULTURE AND SOYBEAN PRODUCTION

Supporting livestock production in-state and across the U.S. is a priority for the South Dakota Soybean Research and Promotion Council. To learn more about ways farmers sponsor research and promote animal agriculture through their checkoff, talk to your district director or call 605-330-9942.

31

INVESTING CHECKOFF DOLLARS

INCREASING SOYBEAN MEAL USE IN AQUACULTURE DIETS

By Sarah Hill

S

oybean meal has long been a staple of diets in the aquaculture industry. One researcher from the University of Idaho, funded by the South Dakota Soybean Research & Promotion Council, is testing just how much soybean meal feed formulators can include in aquaculture diets without compromising the growth or gut health of the fish.

CURRENT SITUATION

Only a small amount of soybean meal is used in aquaculture diets when animals are young, according to Vikas Kumar, assistant professor of research in fish nutrition and nutrigenomics, University of Idaho. Once fish reach the fingerling and adult stages, more soy is added to the diet. Aquafeed producers supplement the diets with fish meal, which has excellent digestibility but is a costly ingredient with limited supply.

Aquaculture diets have changed significantly since the 1990s, according to research done by Kumar’s team. In the 1990s, fish meal was a major source of protein in aquafeed, but since then, the use of soy products in aquaculture has significantly increased.

Plant proteins, mostly sourced from soy, only comprised about 20% of aquaculture diets. Today, that amount has more than doubled.

Kumar’s team anticipates that the proportion of plant protein could expand another 15%, to make up nearly three-quarters of the protein in aquaculture diets.

OUTCOMES AND FUTURE RESEARCH

WHY SOY?

One parameter that didn’t statistically change during the experiment is protein efficiency ratio, which estimates protein quality based on the increase in the fish’s body mass.

Soy is an excellent protein source for aquaculture diets, being less costly than fish meal and sustainably produced.

“At commercial levels, in general we don’t add more than 10-20% soybean meal for salmonids,” Kumar says. “Previous research has shown that using more than 20% soy in aquaculture diets usually causes a lot of problems, such as gut inflammation in rainbow trout.

There’s one section of the animal’s gut where most of the nutrients are absorbed, and that’s where the most inflammation has been found.”

Kumar’s team designed an experiment evaluating seven Atlantic salmon diets, each with varying levels of soybean meal, up to 40%. Other diets in the experiment contained various amounts of soybean meal combined with whole insect larval meal made from black soldier fly larvae, which provides valuable fat and protein to the fish. The insect meal has a high protein content while also offering lauric acid and antimicrobial properties to the fish.

32

Photos provided by United Soybean Board

“We found that the diet with 30% soybean meal and 5% insect meal had the best feed efficiency and growth for the fish,” he says.

“The diets with high amounts (40%) of soybean meal with high inclusion (10%) of whole insect larval meal weren’t so good.”

“While the soy causes inflammation, the insect meal reduces inflammation in Atlantic salmon,” he says. “The growth of the fish was still good.” Kumar’s past and current research indicates that insect meal could be considered as a complementary ingredient to enhance soybean meal utilization in aquaculture diets.

By greatly expanding the amount of soybean meal in aquaculture diets, soybean growers will find a higher demand for their soybeans, making soybeans even more valuable as a commodity.

The next research goal for Kumar’s team is to explore how consumers may respond to eating farmed seafood that has been fed insect meal. They also plan to examine the food quality of those fish.

Winter Issue 2023

SDSL

ASA CORTEVA YOUNG LEADERS

RILEY SCHOENFELDER

ROSS TSCHETTER

Riley is a Mechanical Engineering graduate from the South Dakota School of Mines and Technology and worked as a Reliability Engineer at Cargill for six years. His wife, Kelcy, in addition to being a full-time registered nurse, plays a role in Schoenfelder Farms, helping with farm family operations from driving trucks to assisting with year-end bookwork.

Ross and his wife, Jennifer, of Bridgewater, S.D., find joy in raising their family on the farm. Ross brings a wealth of education and training, including participation in programs such as the Agrivisions Beginning Farmer Rancher Program and the South Dakota Agricultural and Rural Leadership Class VII.

Schoenfelder Farms, a diversified operation near Parkston, S.D., spans 2000 acres of corn/beans, 200 acres of winter wheat, and 450 acres of alfalfa.

Additionally, they manage four 2500-head wean-tofinish hog barns and a cattle operation of about 110 cows. The farm emphasizes sustainability, incorporating practices like manure injection and adopting new technologies for water resource management.

Riley envisions the farm moving towards more striptill/minimum-till practices, with a focus on efficiency and sustainability. He plans to hire additional help to achieve a better work/life balance and contribute to the long-term success of the operation. Weed control and chemical resistance are acknowledged challenges in the soybean industry, and Riley aims to be actively involved in local soybean processors and checkoffs, serving as an informed advocate for the industry. The new processing plant in Mitchell, S.D., is seen as a crucial opportunity for their soybeans and a platform for industry engagement.

Winter Issue 2023

SDSL

As the chair of the McCook County FSA COC and a member of the SDARL Board of Directors, Ross is actively involved in both farm and non-farm activities.

Tschetter Farms, a family operation, focuses on a 50/50 corn and soybean rotation, incorporating innovative practices like early adoption of ag tech for efficiency and stewardship.

Looking ahead, Ross envisions a shift to a multiple crop rotation and a full no-till model for Tschetter Farms, integrating grazing livestock. He recognizes sustainability and trade as critical issues in the soybean industry, emphasizing the need for strategic decisions to ensure a prosperous future for agriculture.

Ross Tschetter sees leadership not as an accident but as a responsibility and blessing. He envisions contributing back to the industry and ecosystem that have been foundational to his family, engaging with the broader community to secure a resilient future for agriculture.

33

INVESTING CHECKOFF DOLLARS

RE-INTRODUCING SOYBEAN MEAL INTO BEEF CATTLE DIETS

By Carol Brown

D

ecades ago, soybean meal was a main ingredient in feedlot cattle diets. Today, because of the large biofuel market, most feedlot cattle diets include distillers grains, a co-product of ethanol production, and soy meal is not on the table. With the increase in biodiesel production, its co-product, soybean meal, is now more plentiful and available for cattle feed. But does it perform as well?

Warren Rusche, an extension beef feedlot an extension beef feedlot management specialist at South Dakota State University, is revisiting the use of soy meal in feedlot cattle diets. Through a research project supported by the South Dakota Soybean Checkoff, he is comparing feeds that include soybean meal, with and without hulls, to those made with modified distillers grains.

“Prior to the biofuel revolution, cattle feed included soybean meal and urea because it was inexpensive and they could convert its nutrients into protein,” explains Rusche. “After biofuels came along, the industry switched to distillers grains.

There is at least a whole generation of cattle feeders who have never used something other than a corn processing co-product to feed their livestock.”

When the COVID pandemic hit and the ethanol plants shut down, distillers grains were suddenly unavailable, and Rusche says feeders had to scramble to reformulate diets. At nearly the same time, the renewable diesel fuel market and soybean crush capacity expanded, which led him to take another look at feeding cattle soybean meal.

“Over the years, cattle genetics have changed and we take them to a different endpoint now,” he says. “They have much greater capacity for growth and they usually finish at a heavier weight. We thought it was time to revisit an old ingredient for use in newer cattle production systems.”

In September 2022, Rusche and his colleague Zachary Smith, SDSU animal science assistant professor, placed 240 steers on one of three different finishing diets: modified, or wet, distillers grains as the control diet; soybean meal with corn, replacing distillers grains; and soybean meal with soy hulls to replace distillers grains. The steers had been range-grazing prior to being placed on these new feeds. They formulated all the diets to have

34

Photo provided by Warren Ruche

the same protein content, and two of the diets had the same fiber content. The third diet included soybean hull pellets to match the amount of fiber in the distillers grains treatment.

“One of the things we examined was whether feeding cattle more starch — which comes from feeding additional corn plus the soy meal to replace the distillers grains — affects outcomes such as growth rate, meat quality and grade, liver abscess, and more,” he says. “We slaughtered the cattle in January and found there were no real differences between the three feed treatments.

It made no difference in terms of livestock efficiency and performance between the soy meal and the distillers grains.”

Rusche is conducting follow-up work and tweaking parts of the study to find why a few anomalies occurred. He and Smith are also conducting a study on cattle feed that blends distillers grains with soybean meal, funded by the Minnesota Soybean Research and Promotion Council. In another project funded by the South Dakota Soybean Checkoff, the team is looking at an expeller-processed soybean meal compared with conventional distillers grains.

As Rusche demonstrates through these projects that soy meal is an equivalent option for cattle feed, an old standby could become the custom again.

“We are in an exciting time in terms of ruminant nutrition research, exploring a different class of feed ingredients,” Rusche comments. “Many people are looking at soybean meal again, as they did in the 1980s — everything old is new again.”

Winter Issue 2023

SDSL

PROUD TO SAFELY AND “I’M EFFICIENTLY MOVE AGRICULTURAL PRODUCTS THAT FEED AMERICA, AND THE WORLD.

”

M AT T, O M B U D S M A N , S I O U X F A L L S , S D

At BNSF, we’ve partnered with American producers for over 170 years. We’re a critical link for delivering agricultural products whenever and wherever they’re needed—in the nation and in the world— and we’re proud of it. Learn more at:

bnsf.com/agproud

Winter Issue 2023

SDSL

35

( YOU ) You just increased your sales to Egypt 708%. Bon voyage.

All soybean farmers, including you, have been busy racking up big sales with export markets. 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.

36

Moving Soy Forward.

Moving You Forward.

Winter Issue 2023

SDSL