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CONTENTS NOVEMBER 2023
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Volume 4 Issue 1
Welcoming International Trade Teams Hosting international trade teams is a key component of the ISA Market Development team’s efforts. The visiting teams often consist of representatives from foreign governments, agricultural organizations, and businesses interested in sourcing soybeans from Illinois.
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Cheri Bustos Gives Inside Look at Voting on a Farm Bill IL Field & Bean sits down with former Congresswoman, Cheri Bustos, to learn what it will take to get the next Farm Bill passed.
10 IL Soy and India: A Match Made in Egypt Learn more about the plan to take successes from the Egypt Soy Excellence Center into the fast-growing emergent market of India.
15 Your Legacy, Our Fight Small farms and businesses are at risk of being punished by the state's overly burdensome estate tax. Learn more about what the Illinois Soybean Association is doing to keep your farm and legacy intact.
24 Moving the Piles What does it take to deliver Illinois' harvest to the world? Read on to find out!
DEPARTMENTS 4
FROM THE BOARDROOM
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CEO'S MESSAGE
28 GROWTH
BY ASSOCIATION
30 VOICE FOR SOY COVER: The Illinois Soybean Association believes that doing business with global customers doesn’t have to be foreign. The ISA Market Development team hosts trade teams from around the world to connect with potential soybean customers, partners and exporters with the goal of increasing the value of the soybean supply chain. This issue of Illinois Field & Bean will profile these visits, demonstrating the ways international customers are able to meet Illinois farmers in their fields to learn more about conservation efforts, U.S. transportation and infrastructure, and the high-quality standards to which Illinois soybeans are held.
FROM THE BOARDROOM CHAIRMAN Ron Kindred, Atlanta District 9 VICE CHAIRMAN Brad Daugherty, West Union District 14 SECRETARY Tim Scates, Carmi At-Large TREASURER Bryan Severs, Potomac District 7 ASSISTANT SECRETARY-TREASURER Dwayne Anderson, Lynn Center District 3 GOVERNMENT RELATIONS COMMITTEE CHAIR Steve Pitstick, Maple Park District 2 MARKET DEVELOPMENT COMMITTEE CHAIR Brian Atteberry, Carmi District 16 SOYBEAN PRODUCTION COMMITTEE CHAIR Brady Holst, Plymouth At-Large
David Niekamp, Coatsburg | District 8 Elliott Uphoff, Shelbyville | District 10 Matt Murray, Paxton | District 11 Brock Willard, Pittsfield | District 12 Heath Houck, Nokomis | District 13 Jeff Parker, Belleville | District 15 Nick Harre, Nashville | District 17 Rick Rubenacker, McLeansboro | District 18 AT-LARGE DIRECTORS Betsey Emerick, Vandalia Jeff O'Connor, Kankakee David Wessel, Chandlerville UNITED SOYBEAN BOARD (USB) Dwayne Anderson, Lynn Center Gary Berg, St. Elmo Lynn Rohrscheib, Fairmount David Wessel, Chandlerville AMERICAN SOYBEAN ASSOCIATION (ASA) Stan Born, Mahomet Daryl Cates, Columbia, ASA President Jered Hooker, Clinton Jim Martin, Pontiac Bill Raben, Ridgway Rob Shaffer, El Paso Roberta Simpson-Dolbeare, Nebo Bill Wykes, Yorkville
DIRECTORS Ryan Frieders, Waterman | District 1 Buck Hill, Grand Ridge | District 4 Mark Read, Putnam | District 5 Jim Martin, Pontiac | District 6 STAFF CREDITS Publisher | Michael Whitmer Managing Editor | Betsy Osman Staff Contributor | Olivia Key Staff Contributor | Brynna Sentel Staff Contributor | Corey Lacey Staff Contributor | Collin Cisco OTHER ISA STAFF Chief Executive Officer | John Lumpe Director of Operations | Dustin Scott Director of Market Development | Todd Main Director of Finance | Kati Owen Director of Government Relations & Strategy | Andrew Larson Director of Agronomy | Abigail Peterson Illinois Soybean Growers (ISG) is owner of Illinois Field & Bean, a publication for Illinois soybean farmers, designed and written to provide timely and useful industry information. Illinois Field & Bean is published by the Illinois Soybean Association, 1108 Trinity Lane, Bloomington, IL, 61704. For address corrections, contact Illinois Field & Bean at 1108 Trinity Lane, Bloomington, IL, 61704. Phone 309-663-7692. Web address: www.ilsoy.org. Email: ilsoy@ilsoy.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. FOR ADVERTISING INFORMATION Michael Whitmer Publisher Email: michael.whitmer@ilsoy.org
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DWAYNE ANDERSON | ASSISTANT SECRETARY-TREASURER | ILLINOIS SOYBEAN ASSOCIATION
From Foreign Business Partners to First-Name Friends Over the years, my service on the Illinois Soybean Association (ISA) Board of Directors has provided me with numerous opportunities to bridge the gap between Illinois soybean farmers and international customers. One of the most enriching experiences has been welcoming international teams to my farm in Henry County. These visits have not only allowed us to showcase the exceptional quality and efficiency of soybean production in Illinois but have also fostered unique bonds between Illinois farmers and our global customers. Illinois has long been recognized as a powerhouse in soybean production, and our state's farmers take great pride in their ability to cultivate high-quality soybeans, thanks to our fertile soil, advanced farming techniques, and cutting-edge technology. Hosting international teams on our farms gives us the perfect opportunity to showcase these strengths. When visitors from countries across Asia, South America, and Europe step onto our Illinois soil, they witness firsthand the hard work that goes into producing soybeans. They see how we utilize modern technology, such as precision agriculture and sustainable farming practices, to ensure the highest yields while minimizing environmental impact. This instills confidence in the quality of our soybeans while also highlighting our commitment to ensuring our farms remain productive for years to come. Perhaps the most significant reward of hosting international teams is the lasting friendships that develop. The bonds forged during their visits often extend far beyond their time on our farm. We've been fortunate to visit our international friends in their home countries, further strengthening our relationships and understanding of global agriculture. During these visits, conversations are not limited to the fields; they extend to our lives, families, and communities. We learn about the challenges and opportunities faced by our international guests in their own agricultural pursuits. In addition to building personal connections, these visits also serve as a crucial trust-building exercise. When international customers see the transparency and dedication that defines Illinois soybean farms, it reinforces their confidence in our product. They return home with firsthand knowledge of the origin and quality of the soybeans they purchase, which can make a significant difference in their decision-making processes. Furthermore, by fostering connections between Illinois soybean farmers and global buyers, we play a role in alleviating global food insecurity. Soybeans are a critical source of protein for both humans and livestock, and ensuring a steady supply of high-quality soybeans helps to address global food challenges. When we facilitate these relationships and share our agricultural expertise, we contribute to the well-being of people worldwide. Welcoming international buyers allows us to showcase the excellence of soybean production in Illinois while creating bonds and building trust with our international customers. Through these connections, we not only boost our local economy but also contribute to global food security. We look forward to continuing this journey of learning, growth, and friendship with Illinois soy’s global customers.
Funded by the Illinois Soybean Checkoff
ISA's commitment to hosting international trade teams is not just a local endeavor, it is a central component of global collaboration and mutual benefit. Beyond its support of Illinois soybean farmers, ISA's efforts resonate internationally, creating connections and building trust among soy buyers worldwide.
Welcoming International Trade Teams
By Olivia Key
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eyond supporting the 43,000 Illinois soybean farmers, the Illinois Soybean Association (ISA) plays a crucial role in fostering international trade relationships by welcoming trade teams from around the world to our state’s farms. These visits offer valuable insights into the Illinois soybean industry while simultaneously acting as catalysts for the growth of global partnerships that yield mutual benefits for both Illinois farmers and international consumers. Soybeans are a staple crop in Illinois, and the state consistently ranks as the leading soybean producer in the United States. Recognizing the global significance of soybeans, the ISA Market Development team continually strives to foster connections with international buyers. ISA’s International Markets Manager, Eileen Urish, said, “Hosting some of our top customers is not only a great honor, but it also provides us, and the farmers of Illinois, with a unique opportunity to
engage with our consumers on a more personal level. By inviting them to soybean farms in Illinois, we aim to help them understand the key differences that make U.S. soy the best choice. This direct interaction creates a deeper connection and appreciation for the quality and sustainability of soybeans produced in Illinois.” The team’s mission extends beyond the goal of increasing the demand for Illinois soy; it also encompasses the goal of expanding the reach of Illinois soybeans into untapped and emerging global markets. “With this exceptional quality and production efficiency, we have an opportunity to make a significant impact worldwide,” Urish adds. “Our commitment to innovation, responsible farming practices, and building strong international partnerships will be the driving force behind our success in bringing Illinois soy to the forefront of global markets.” Hosting international trade teams is a key component of the ISA Market Development team’s efforts. The visiting teams often consist of representatives from foreign governments,
agricultural organizations, and businesses interested in sourcing soybeans from Illinois. During the visits, trade teams can gain direct insight into the quality and efficiency of Illinois soybean production through visiting farms, research facilities, processing plants, and more, to learn about the entire soybean supply chain. ISA At-Large Director, Jeff O’Connor, knows firsthand the importance of fostering relationships with international soy buyers. “What I have found by hosting trade visits is that even though we stand here on a particular day, with a certain environment around the world for trade, our experience has shown us that in the not-too-distant past, and probably in the not-too-distant future, those conditions will always change, so we can never have too many customers,” says O'Connor. These face-to-face interactions help build trust between Illinois soybean producers and foreign buyers while securing a roster of markets for Illinois soy. “Yes, we want to keep our main customers, but, if you lose one of those, you want to
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have as many other customers as possible and develop those relationships,” continues O’Connor. “It's a continual development of who our potential partners could be so that we have a constant stream of options for our high-quality, highyielding, profitable soybeans here in Illinois. As a farmer, I can't do that on my own, nor would I have the time, the resources, or the understanding to do that. So, to have an organization that constantly has staff working on those relationships is vital. When I’m farming, I don't have time to think about it, and you can't stop those relationships midstream.” Additionally, the significance of hosting farm and industry visits for international buyers extends beyond immediate economic gains, reaching into the realm of global food security, as Illinois soybeans play a pivotal role in meeting the world's increasing protein demands. When international buyers return to their respective countries with a deeper appreciation of the reliability of Illinois soybeans, they are more inclined to continue (See International Trade Teams, page 6)
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Funded by the Illinois Soybean Checkoff
International Trade Teams (continued from page 5)
sourcing soy from Illinois. This, in turn, strengthens the stability and resilience of the global food supply, ensuring that protein needs are met consistently and efficiently. Over the course of two months, the ISA Market Development team welcomed more than 10 teams of international guests interested in learning more about soybean production in Illinois. The teams hailed from various regions, including Korea, China, Japan, South Asia, Brazil, Europe, and Inner Mongolia, and even included a group of international agriculture influencers. Throughout these visits, the teams are offered the chance to explore different facets of the Illinois soybean production process, including visits to grain elevators and lock and dams. Depending on the specific interests of each team, some also had the opportunity to tour
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agricultural cooperatives and the University of Illinois to gain deeper insights into agricultural business and ongoing soybean research projects. Additionally, many of the visiting teams were provided with a tour of the ISA office, where they gained insights into the soy checkoff's mission and the various initiatives undertaken by ISA to ensure the long-term productivity and profitability of Illinois soybean farmers. As Illinois maintains its position as the United States’ leading soybean producer, the importance of building relationships with foreign buyers cannot be overstated. These face-to-face interactions, as exemplified by the recent visits from multiple international teams, empower buyers with the knowledge they need to make informed decisions and strengthen their ties to Illinois soy. In an ever-evolving landscape of global trade, ISA's commitment to nurturing relationships and exploring new markets is a testament to the organization’s dedication to sustaining the legacy of Illinois soybean farmers.
CEO'S MESSAGE
When Trust is the Priority, Shared Vision is the Result Earning trust from the 43,000 soybean farmers of Illinois isn’t just important at the Illinois Soybean Association (ISA), it’s our top priority! Our farmer checkoff investors rely on our 24-member volunteer board to implement a wide range of agronomic research projects, market development initiatives, and innovative communications tactics, as well as educate our government partners. And our farmer members count on the Illinois Soybean Growers (ISG) to actively advocate for positive and impactful legislation for farmers at state and national levels. When ISG members voluntarily decide to pay membership dues, it draws a direct connection to trust. But in the case of checkoff investors, building relationships is not as easy due to the nature of the soybean checkoff program. We admittedly have to work harder to earn that badge from soybean checkoff investors. Reliance, driven by transparency, permeates everything we do — from ISA staff to board, from board to farmer, and from farmer to consumer. Building confidence is a natural, strategic component of our culture, which allows us to conduct business on behalf of Illinois soybean farmers effectively and efficiently. An open, inviting approach transforms our work from business to personal. As an organization, we continue to prioritize trust building as a fundamental element as we work to create dividends that return to our farmers, the first link of the soybean value system. This involves operating with transparency, communication, and accountability at all levels. It starts with staff earning the confidence of our board leaders about their progress on projects, as well as the status of funds and any issues that may arise. Likewise, the board communicates openly with the ISA staff, clearly conveying goals and expectations, and providing feedback. The ISA Board is dedicated to being faithful stewards for the Illinois soybean farmer members they represent as well as other soy stakeholders. Farmers are right to expect insight into how board members are guiding ISA's strategy and investments of checkoff dollars. Open reports build trust between our farmer investors and the board dedicated to serving their interests. Internally, good faith among ISA staff and across teams and departments is equally crucial. When our team members are open and collaborative about their work and ideas, it breaks down silos. Trust enables staff to align efforts, avoid duplication, gain insights from each other, and overall work better as one cohesive unit. An environment fueled by free-flowing information allows operations to run more smoothly and productivity to skyrocket. Earning trust from our farmers also spills over into our work with other commodity groups, collaborators, and agribusinesses. It’s about bringing the expertise forward from our talented bench
JOHN LUMPE | CEO | ILLINOIS SOYBEAN ASSOCIATION
of professionals, ultimately to benefit the farmer, but also to serve the consumers of Illinois soy. Sharing information with other groups and collaborators breeds insights to better ideas and outcomes than any one group could achieve alone. The soybean industry is complex, with many moving parts and diverse stakeholders. When staff, board, and farmers can trust each other, goals align, and we become united in the pursuit of our shared mission: “To uphold the interests of Illinois soybean producers through promotion, advocacy, research, and education.”
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Cheri Bustos Gives Inside Look at Voting on a Farm Bill By Brynna Sentel
T
he 2018 Farm Bill didn't travel an easy road - it took nine months to gain approval - but its path was smooth compared to the 2014 Farm Bill, says former Congresswoman Cheri Bustos. That bill languished for nearly two years before passing. While the Congressional landscape is not the same as it was 10 years ago, many of the same debates are likely to take center as we consider the 2023 Farm Bill. For the first time in history, this Farm Bill is expected to be over $1 trillion, and in this session, almost half of Congress is brand new or new to passing a Farm Bill. So, we're looking at a big learning curve and a lot at stake. “I have been involved with three Farm Bills in my time in Congress,” says Bustos. “I voted on the 2013 Farm Bill; I was on the Conference Committee for the 2018 Farm Bill, and then, even though I knew I was leaving Congress in January of this year,
we did field hearings and listening sessions all over the country, asking, ‘What do you want to see in the 2023 Farm Bill?’” One consistent theme throughout these listening sessions was farmers' concerns about crop insurance and protecting it. “Crop insurance and the nutrition program are among the most heavily debated parts of the Farm Bill, and my guess is they will be again for this 2023 Farm Bill,” says Bustos. Though the Farm Bill has expired, the mandatory programs continue. A “Continuing Resolution” will be voted on by the Chair of the House Ag Committee to ensure no necessary programs are left unfunded. “Now, keep in mind, there hasn't even been a draft of a Farm Bill released out of the House or the Senate,” says Bustos. “So that gives you a little perspective. There's a long way to go still.” Some legislators even predict this next Farm Bill won't pass until 2025 due to it being an election year and several other
obstacles, including a possible government shutdown and the sudden leadership turnover in the U.S. House. Unfortunately, the Farm Bill just isn’t the top priority. For a Farm Bill to pass, experts will debate all 12 titles, then vote for passage by the Ag Committee. Titles in the most recent Farm Bill include farm commodity revenue supports, agricultural conservation, trade and foreign food assistance, farm credit, research, rural development, forestry, bioenergy, horticulture, and domestic nutrition assistance. Democrats and Republicans draft their versions of what they think should be included in the Farm Bill, and then it's all presented in the Ag Committee, where you have what's called markup. They go over each of the titles and then go over each of the amendments. When the final passage comes out of the Ag Committee, the Speaker of the House will decide if they want to bring it to the House floor. The Speaker will want to ensure they have the votes to pass it before it is brought up for a vote, because it's viewed as a
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leadership failure if something is passed out of committee but not passed out of the House floor. While all this is happening in the House, the same is happening in the Senate. The Senate will draft its version, send for a vote in the Ag Committee and then forward that to the whole Senate floor. Only after that long process do the two draft proposals go for review by a jointly appointed conference committee to work out those differences. “That's an essential part of the process where Illinois will want as many of our folks as possible at that table,” says Bustos. The version that comes out of the conference committee is then voted on, and, if passed, goes to the House and Senate for voting, then to the President to be signed into law. “I come from a long line of family farmers, and they all grow soybeans here in Illinois,” says Bustos. “I got more heavily involved from a policy perspective in 2013 when I began my decade-long career in Congress, where I served on the Ag Committee from day one. I stayed on it and ended up Chair of the General Farm Commodities and Risk Management Subcommittee of House Ag.” Bustos left Congress on January 3, 2023, and now works alongside the Illinois Soybean Association in a new role in public affairs. In this capacity, she is working to educate lawmakers about family farms so they have a personal connection to reflect on with agricultural issues. “Agriculture is the biggest economic driver for the State of Illinois,” says Bustos. “Whether you serve on the Ag Committee, you are a rank and file member, or you serve on other committees within the House or the Senate, it's important that you understand what an important economic driver agriculture is. It's important for every one of our members of the Illinois congressional delegation to understand agriculture.” November 2023
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Funded by the Illinois Soybean Checkoff
Celebrating two key milestones of the Egypt Soy Excellence Center (SEC) in September 2023: completion of the 100th Aquaculture and the 101st Poultry Production SEC cohorts. Fifth from left is Illinois farmer and ISA Director Mark Read, who is Vice Chair of the U.S. Soy Export Council's SEC Steering Committee. Photo Credit: USSEC.
IL Soy and India: A Match Made in Egypt The plan to take successes from the Egypt Soy Excellence Center into the fast-growing emergent market of India By Joli A. Hohenstein
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n a fun juxtaposition, sometimes we in U.S. and Illinois agriculture are hit with the fact that while we differentiate ourselves from other global producers, we are the same in many ways. Like other countries, we face ongoing challenges driven by global factors from politics to education to logistics to financing. But where we in the soybean industry differentiate ourselves is emergent marketing — informational, educational outreach marketing. If customers don’t meet us where we are, we meet them where they are. That’s a key principle behind Soy Excellence Centers.
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Emerging markets, those that are experiencing considerable growth and are transitioning from developing to developed countries, remain one of the best export opportunities for Illinois soybeans. They have more liquidity and increased trade; foreign investment is on the uprise. Often, though this is not an “official” characterization, “They can’t grow enough soybeans to support their protein needs because their population is still growing,” says Mark Read, Illinois Soybean Association (ISA) District 5 Director and Vice Chair of the Soy Excellence Center (SEC) Steering Committee for the U.S. Soy Export Council (USSEC). All of these factors are the
“why” behind USSEC’s SEC. The idea is to “build tomorrow’s leaders today.” Growers and business leaders alike in these budding markets have little access to training. USSEC’s program hopes to change that – and it’s working. “I was part of the Illinois group that went to Egypt in early 2023 with the Market Development Committee,” says Read. “It really sold all of them on SECs as a way to expand into these countries. In fact, I’ve personally been to three SECs this year. When you see them in action, there’s no question you’re sold on them.” Todd Main, ISA's Director of Market Development, agrees wholeheartedly, and saw firsthand along with Read on a
September 2023 trip to Egypt celebrating the 101st SEC cohort for poultry training production and the 100th SEC cohort for aquaculture. “The joy on their faces and the difference it has made in their lives was palpable,” he says. “It’s a win for them — a win for the industry and a win for Illinois.” Why Illinois? Because our state was deeply involved in establishing the SEC in Egypt, and it has paid off for all involved since the inception in 2019. Even while the Egyptian poultry industry faces global inflation, currency turmoil, and increasing feed costs, USSEC reports the country’s poultry producers have achieved
Funded by the Illinois Soybean Checkoff 100% self-sufficiency and are exporting to several other countries. Aquaculture in Egypt has grown significantly and now ranks sixth in Africa. And soy from Illinois plays a critical role in helping Egyptians sustain their aquaculture operations. Egypt is one of our fastest-growing markets.
What Are SECs USSEC’s vision for the SEC program is to create a global network of tomorrow’s soy leaders across the globe. In countries where access to professional development is limited or even nonexistent, SECs give soy industry members the opportunity for professional certification and career training. International experts build and administer the program locally in these emerging markets where it is needed most. The curriculum is sectorspecific, track-based, and
developed with input from local partners and global experts. Current tracks offered by SECs include Poultry Production, Feed Milling, Aquaculture, Soybean Processing and Refining Technology, and Swine Production. More are expected to be added over time. Currently, SECs operate in the Middle East and North Africa, South Asia and Southeast Asia, Sub Saharan Africa, and the Americas. "Through the workforce training programs offered by the Soy Excellence Center, we have trained over 18,500 early-to-mid career protein professionals since its inception,” says Tori Sorensen, Chair of the SEC Steering Committee for USSEC. “We have shared knowledge and cultivated the skills of these emerging leaders, our 'Tomorrow Solvers', who now possess the expertise to make a significant daily impact and
contribute to the growth of their respective companies and local economies. We are grateful for the ongoing support from Illinois Soybean Association as we continue to grow the Soy Excellence Center, building a preference and demand for U.S. soy worldwide."
What Does Tomorrow Look Like for SECs Today, ISA continues to support the Egypt SEC and nurture that ongoing relationship. In addition to the September trip Main and Read attended, you may recall reading about the March visit that Read mentioned our Market Development Committee made as well. This success has us not sitting back and celebrating, but looking ahead to the next emerging market export opportunity. Many hours of detailed analysis,
research, and groundwork have our sights set on India. “We are leaning into these opportunities, when we vet them and see possibilities,” says Main. “Just as we’ve done in Colombia, in Egypt, and in China, we believe these efforts are the best way to have long-term, sustainable market relationships.” India is #2 on NASDAQ’s Top Emerging Markets list. The population has more than doubled since 1950, and just this year, India surpassed China as the world’s most populous country. A key difference? While China’s population is on the decline, India’s population continues to grow, and with it, its soy foods consumption. The country’s market for soy beverages alone is expected to increase from $61 million in 2023 to $91 million by 2028, according to Mordor Intelligence. (See Illinois Soy and India, page 12)
Honduras Soy Excellence Center Aquaculture cohort celebrates completion of their training. Photo Credit: USSEC
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Ill Soy and India (continued from page 11)
(For reference, India’s combined soy food sales in 2020 were $54 million, according to USSEC.) This is a market hungry for protein, and they cannot produce enough to feed their demand. “They need protein in their diets, and Illinois soybeans are an ideal source,” says Read. “We want to bring the SEC workforce training concept to their people. It’s a good opportunity and a good way to expand our exports to India." “We have seen success with these workforce training programs being accepted. It is a good entrance into the country and the market. And of course, we will also be able to talk about the advantages
of Illinois soybeans over Brazil,” he says. The population of India is ideal for receiving an SEC program, says Main, which is why ISA, along with the South Dakota Soybean Association, has committed to supporting SEC development in India. “The population is very sophisticated and very educated. They produce a fair amount of their own
soy,” Main explains. “It is important that we are very active when we see an opportunity like this, and that we lean into it and plant a flag early.” The bottom line, as Main and Read see it: An SEC in India provides the perfect opportunity to solidify the fact that U.S. soy – and especially Illinois soy – brings quality to their market that pays dividends.
A member of the 101st Poultry Production SEC cohort graduates in Egypt. Photo Credit: USSEC
An SEC Aquaculture cohort learns on-site at a Honduras aquaculture facility. Photo Credit: USSEC
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Make Moves with U.S. Soy Our founding farmers took action 22 years ago to launch ASA’s World Initiative for Soy in Human Health so WISHH could grow new markets for U.S. Soy. Today, WISHH is working with strategic partners that use soy for food or feed in 28 countries across Asia and Latin America to sub-Saharan Africa. Find out how WISHH’s three pillars of trade, development and food security cultivate new markets for U.S. Soy protein.
Trade. Development. Food Security.
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Your Legacy, Our Fight By Collin Cisco, Public Policy Manager
T
here is something special about the family farm. Whenever I talk to farmers, it’s almost a guarantee the farmer will mention what generation farmer they are in the line of their family’s farming legacy. Legacy is as critical to our agricultural infrastructure as planting practice, soil health, or equipment, because it's the legacy that continues the tradition of stewardship, business innovation, and the family farm. Many threats loom in the distance for our farmers when it comes to preserving and protecting legacy; one such issue is the estate tax. As you know, estate taxes are applied to an estate upon a descendant's passing with varying tax exemptions applied at the state and federal level. Illinois is one of only eleven states that have any estate tax and one of only two Midwest states. Currently, any individual’s estate value beyond
$12.92 million, with that threshold doubling to $25.84 million for married couples, faces a higher tax rate at the federal level. However, in Illinois, the tax rate exemption threshold applies to any estate valued at just $4 million, with the tax rate coming in at a whopping 16 percent. Coupled with the tax rate farmers face at the federal level, family farms could very well be hit with a double whammy, crippling their ability to continue the legacy without serious financial constraints or proactive estate planning. If we were to evaluate only the land at the average rate of Illinois farming real estate, to cross that threshold a farmer would only need to be operating 431 acres to qualify for the highest estate tax in the state of Illinois. With the average farm in Illinois scaled at 375 acres, that means more folks in the median range of farm scale are being penalized for inheriting land from their own family. Coupling farm assets with other property, equipment, investments, and cash, makes the Illinois estate
tax threshold a very clear threat to many farmers and their farm legacies. Legislators recognized this threat and introduced several bills to the Illinois legislature trying to prevent farmers from facing this burden. This session saw quite a bit of momentum toward direction of raising the threshold, or at least carving out special provisions for farmers. However, a last-minute budget conflict meant the expected state budget surplus was no longer a reality, and any further deficits would fiscally and politically be non-starters. There is hope for another opportunity to address estate taxes in the next session of the General Assembly. Legislators on both sides of the aisle have expressed interest in pursuing this legislation, particularly because of the effect it would have on small business owners, farmers, and other constituencies who face looming estate tax burdens. The Illinois Soybean Association plans to be heavily involved and proactive in these discussions
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through policy education, sharing farmer stories, and consistent outreach to key legislators who have a heavy hand in the outcome of this fight. This will be a key issue for the association in the coming months. We plan to invest our time and resources in educating key stakeholders on the importance of protecting the family farm and your legacy. One way you can get involved is by reaching out to your state Senator or Representative and telling your story. Tell the story of your family farm; tell the story of the generations of families that have served Illinois consumers, and tell the story of the burden you face with the current estate tax threshold. Your story is powerful and is the most important educational tool we have at our disposal to better inform changemakers. As always, we’re on your side. Thank you for sharing your legacy with us. Feel free to share your thoughts by reaching out to me at collin. cisco@ilsoy.org. November 2023
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Moving the Piles Delivering Illinois’ harvest to the world
By Mace Thornton
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odd Main is on a mission to sell Illinois soybeans. The Director of Market Development for the Illinois Soybean Association (ISA) knows his work is segmented into many tactics, and on many fronts, but it is guided by one over-riding strategic principle — move the piles! That’s for good reason. Illinois is the nation’s largest soybean producing state, accounting for about 15 percent of the national total. Even with this year’s crop being down about 7 percent, that’s still a lofty pile of soybeans to move to market. So, as the combines of 2023 roll across the Prairie State, Main has already been working months, even years, in advance to find a home for all those Illinois soybeans. “My job is about taking barriers away from getting our soybean products out to feed the world,” he said. “Every day I get up excited about that because food security really is the foundation of geopolitical security.” Since 60 percent of all Illinois soybeans are destined for international export, a good share
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of Main’s attention is on rapidly growing and urbanizing regions of the world, where there is a “rising demand for low-cost protein sources,” including for livestock feed and human food. ISA collaborates with the United States Soybean Export Council (USSEC) and international partners to capture that demand. USSEC’s establishment of Soy Excellence Centers is increasing demand for soy-based livestock feed in countries around the world. “They host small producers, who maybe have 100 chickens running around in their backyard and say, ‘Hey, we're going to train and certify you with the latest technology and best practices, so maybe you can set up a house where you can have 1,000 chickens,’” Main says. Main identifies Turkey, the Middle East & North Africa region, South Asia, India in particular, and the Southeast Asia markets of Vietnam, Cambodia, and the Philippines as key growth areas for Illinois soybean sales. He also emphasizes Mexico and South America, due to the close-by transportation advantage.
ISA At-Large Director Scott Gaffner, who farms near Greenville, credits trade missions focused on building relationships with foreign buyers as essential in all those key markets. “We want buyers in other countries to be our friends and business partners,” he says. “That’s an important aspect for ISA as an association. We visit those buyers in their countries and do the best job possible representing all of our 43,000 Illinois soybean farmers. We share information face-to-face about the positive aspects of Illinois soybeans, and by establishing that relationship, they not only become active buyers but also avid buyers.” Having that diverse marketing network is vital, according to Gaffner. If something goes wrong in one market, such as China, other nations are ready to step in and take up the slack. While discussing China's profile in Illinois soybean exports, Main acknowledges its significance as the largest market. However, faster export growth will come from many of those other nations with emerging economies.
“This long-term approach involves educating and cultivating relationships in less mature markets to secure lasting market share for the future,” Main says. Steve Pitstick, ISA Government Relations Committee Chairman, also believes Market Development is critical to moving the pile. “It’s a long, slow build, and there are no easy things that just happen,” says the Maple Park farmer. “Today, we are seeing the coming of age of dollars spent years ago to teach users in foreign nations the benefits of U.S. soy protein.” When talking about exports, one must also talk about competitors. Main knows anytime he is applauding the virtues of Illinois soybeans to buyers, he is up against Brazilian counterparts. “It comes down to quality,” he says. “We're probably not going to be competitive on price with Brazil. What makes us competitive is quality and our transportation system. One value proposition is U.S. soy makes sense in terms of animal agriculture. We have studies that document the advantage of our amino acid profile, and we can show growth charts that
Funded by the Illinois Soybean Checkoff demonstrate why our soybeans are better as well as being raised sustainably. Price is always going to be a factor, but quality is what differentiates us.” Domestic markets, while accounting for a 40 percent share of the total pile, also draws ample attention from Main. While the value equation between oil and meal has flipped in recent years due to increased oil demand for renewable fuels, Main is focused on both products. “Biodiesel is the biggest driver right now,” he says. “It's generating a lot of oil demand and generating the construction of new crush facilities. The second thing is relatively new – sustainable aviation fuel. We know there's a crush facility and refinery being launched right now in Gilman at Incobrasa Industries. They want to establish a pipeline that goes directly to Midway and O'Hare airports.” Another domestic growth market falls under the heading of “New Uses.” “This year we have plans to launch our Soy Innovation Center,” Main says. “It’s an incubator to help spur the development of new products and the use of new techniques. It’s really a strategy to diversify our markets. With electrification of vehicles coming, we don't know how biodiesel demand is going to hold up over the long term, but we know we have a good run ahead of us for the next five to seven years. So we have to hedge that risk a bit.” Non-food, soy-based products are ever popular due to the fact that soybean oil can be substituted for petroleum in almost any product and have a much more sustainable profile and lower environmental footprint, according to Main. That includes products such as lubricants, degreasers, cleaners, coatings, and asphalt bindings. A tangible example was a soy-asphalt demonstration project during this year’s Farm Progress Show in Decatur.
Soybean meal is also part of Main’s “top-of-mind” marketing strategy. “Soybean meal is one of the least expensive forms of protein that exists,” he says. “The growth potential is exploding around the world for pork, poultry, and aquaculture feed. Then, there's the whole human food side." There is also the matter of soybean meal being a value-added product as livestock feed here at home. “Soybean meal is either being exported as meal or it’s being exported as U.S. pork or poultry,” Main says. “We work closely with the U.S. Meat Export Federation. They do a tremendous job.” While part of the Illinois soy success story is due to quality and price, additional production capacity will be driven by technology. “It’s a brave new world that’s opening up in front of us,” Main says. “We are going to be standing even taller when it comes to sustainability because we are going to lead the world in this next generation of agriculture. We have proposed a new economic model for broadband connectivity that works for rural Illinois. Instead of looking at population, we use acres-under-production as our metric, so we can do precision ag and get all the economic benefit from that.” Main says the estimated productivity boost from highspeed internet access is between 15 and 30 percent. Many Illinois counties, however, are not able to tap into available resources to make the connection. “We have a program called ‘Broadband Breakthrough.’ We teach counties how to do unique broadband plans so that they can qualify for federal funds. We’ve already done that with the first five counties, and we’re doing that for the next 10 counties right now. It’s very exciting, and it is going to be a game-changer.” More productivity undoubtedly means more bushels – more piles for Main to move. By all indications, he and ISA are up to the task.
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A PUBLICATION OF THE ILLINOIS SOYBEAN ASSOCIATION
November 2023
25
You Grow a Protein Powerhouse for Global Food Security Find out how ASA/WISHH’s soy checkoff-supported work with Edesia Nutrition led to the company developing a product that contains 25% more soy flour than earlier formulations. Adding more soy allows Edesia to reach more people throughout the world.
Trade. Development. Food Security.
Top photo courtesy of SNI Global
26 November 2023
( Y OU ) Who’s the No. 1 protein source in chicken feed? YOU are. That’s right. You’re winning. All soybean farmers, including you, are really big in poultry and livestock feed. How? By pooling your resources through your soy checkoff. Learn how your soy checkoff is bringing tangible returns back to you and your operation at unitedsoybean.org/hopper.
Moving Soy Forward. Moving You Forward.
A PUBLICATION OF THE ILLINOIS SOYBEAN ASSOCIATION
©2021 United Soybean Board [61133-1 7/21] IL
November 2023
27
GROWTH BY ASSOCIATION | Funded by the Illinois Soybean Checkoff
Unlocking Growth: Meet ISA’s Market Development Team By Todd Main, Director of Market Development
I
n a rapidly changing global marketplace and amid the ever-evolving agriculture industry, the Illinois Soybean Association (ISA) has expanded our Market Development team to better promote Illinois soy as the preferred choice among U.S. and global customers. Our now six-person team is poised to drive the expansion of soybean markets, both at home and abroad. From fostering international trade relations to strengthening domestic market presence, each member plays a vital role in paving the way for Illinois soybeans' growth and sustainability. I am excited to introduce each of these individuals who make up ISA's Market Development team, who work diligently to cultivate fresh opportunities, and propel Illinois soy to new heights.
Eileen Urish, International Markets Manager Assuming her new position as International Markets Manager, Eileen Urish is actively engaged in enhancing ISA's involvement in trade and exports. Her efforts involve fostering partnerships with farmers, exporters, foreign consulates, soybean buyer groups, and partner organizations. Urish takes charge of organizing visits for international trade teams eager to explore Illinois' soybean supply chain, encompassing farm visits, research facilities, processing plants, and more. Additionally, she facilitates international trips that enable ISA staff and board members to gain insights into farming practices around the globe.
Tim Rendall, Domestic Markets Manager Having joined ISA in August, Tim Rendall, who serves as ISA's Domestic Markets Manager, brings over a decade of expertise in spearheading agricultural initiatives centered on sustainability, market growth, and societal impact. Within his role, Rendall works to amplify and broaden the utilization of soy across the domestic landscape, spanning feed, food, textiles, and renewable energy sectors. Furthermore, he provides essential support for a roster of ISA initiatives aimed at increasing the demand for Illinois soy within the domestic market. This includes forging partnerships with farmers, producers, and affiliated organizations to create innovative and pioneering strategies aimed at strengthening and developing domestic soy markets.
28 November 2023
Funded by the Illinois Soybean Checkoff
Caitlyn Abbey, International Markets Specialist Caitlyn Abbey, with more than five years of global agriculture expertise dedicated to food security and development, joined the ISA team in August, assuming the position of International Markets Specialist. Within her role, she concentrates on cultivating connections with consulates and business organizations in Chicago through active participation in various events. Additionally, Abbey collaborates with the International Markets Manager in hosting farm and industry visits with international trade teams.
Jaidyn Miller, Market Development Coordinator Jaidyn Miller, who also joined ISA in August, holds the role of Market Development Coordinator based at the ISA Lombard office. A significant portion of Miller's responsibilities centers on the recently launched "It's Sustainably Soy" Certification Program, which is designed to acknowledge organizations, firms, and executives incorporating sustainable soy-based inputs into their products. To facilitate the program's success, she actively engages with stakeholders, arranges meetings to discuss various certification program matters, evaluates certification applications, and, most importantly, collaborates with companies dedicated to sustainability through the utilization of soy. When Miller is not working in the realm of new uses for soy, she participates in meetings with her colleagues contributing to the establishment of the Soy Innovation Center.
Emma Peters, Market Development Coordinator Emma Peters, who began her journey at ISA as a summer intern, holds the position of Market Development Coordinator at the Bloomington office. As a current University of Illinois student, Peters is pursuing a degree in Agricultural and Consumer Economics focusing on Policy and International Trade and Development, along with a minor in Animal Science. Upon her upcoming graduation, she will join the team full time to contribute to the growth of both international and domestic soybean markets.
"Our Market Development team is a dynamic and dedicated group of individuals committed to driving growth and sustainability in soybean markets. With their diverse expertise and passion for the Illinois agriculture industry, they are positioned to make significant contributions to the continued success of ISA's initiatives. Together, we are forging partnerships, fostering innovation, and expanding market opportunities to ensure a bright future for Illinois soybeans." – Todd Main
A PUBLICATION OF THE ILLINOIS SOYBEAN ASSOCIATION
November 2023
29
VOICE FOR SOY
Resisting Regulations Concerns grow as the EPA proposes burdensome restrictions for U.S. farms
Across Illinois, farmers' concern is increasing regarding actions taken by the Environmental Protection Agency (EPA) to become compliant with the Endangered Species Act (ESA). This summer, the EPA released the proposed Herbicides Strategy which, if enacted, would create new and burdensome regulations, for on-farm herbicide use. The core concept of the Herbicide Strategy is that farmers would attain “points” by adopting specific practices (reduced tillage, cover crops, vegetative filter strips, contour farming, etc.). Use of most herbicides would require a set number of “points” per field - most herbicides could require 6 or more points to use. As a result, Illinois Soybean Growers (ISG) anticipates that farmers would have to adopt multiple practices in each field, creating a situation for some Illinois farmers where they are unable to comply with the proposal, effectively making the land unfarmable. In almost all cases, the proposal would impose significant costs on farm operations. The proposed strategy and supporting documents are extensive, comprising over 500 pages of rules and regulations, making it incredibly complex and difficult for individual producers and applicators to determine if fields are under regulation or understand their compliance obligations. Currently, ISG is most concerned about new policy on fields with subsurface drainage (tile drainage), which would require construction of wetlands/retention ponds to prevent all drainage (water) from flowing off site. With the complications of nearly 10 million acres of tile drainage in Illinois, this regulation alone would create an unworkable situation for many Illinois farmers. ISG is working hard to communicate the unreasonableness of this requirement to the EPA and propose alternative solutions. However, the proposed Herbicide Strategy also contains many more issues Illinois farmers should be concerned about. Some examples are: Criminal Penalties The EPA’s proposed plan could make farmers susceptible to civil and criminal penalties for violating proposed ESA regulations, putting additional and unnecessary burden on farmers. Surveillance State Worse yet, since violations would fall under ESA, there is the potential for individuals to be rewarded for reporting farmers. This would create a scenario where there is a financial incentive for the surveillance of farm operations by activists, thus exposing farmers to the potential for false accusations that may be difficult to defend.
30 November 2023
COREY LACEY, PH.D. | PUBLIC POLICY MANAGER | ILLINOIS SOYBEAN ASSOCIATION
Pesticide Exclusion Zones The EPA is splitting much of the country into Pesticide Use Limitation Areas (PULAs) based on loosely defined and identified habitats. Many Illinois farm fields fall into two of these PULA areas. While new regulations will apply nationwide, farmland in the PULAs will have additional requirements for farmers, making compliance even more difficult and, in some cases, effectively creating pesticide exclusion zones. Larger Drift Buffers The EPA is changing rules around aerial and ground spraying of herbicides. Potentially increasing downwind spray-drift buffers of up to 500 feet for aerial applications and 200 feet for ground applications for fields near ESA habitats. ISG is taking steps to protect Illinois farmers from these worrying regulations. This includes educating the EPA and our congressional offices about the undue burden the proposed strategy would place on our farmers, as well as coordinating outreach and advocacy efforts with other state and national farmer organizations. Finally, we are working hard to organize our farmers to resist these unfair regulations before they are finalized. The EPA has said they plan to implement a final Herbicide Strategy by 2024, making this a rapidly evolving situation. Please watch for additional outreach on this issue in the coming weeks and months. Feel free to contact us at govrelations@ilsoy.org for more information.
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RESEARCHING A BETTER BEAN
Whether you’re dealing with drought, flood, heat or other climate-related stress, the soy checkoff is working behind the scenes to diversify U.S. soybean genetics and increase stress tolerance. We’re looking inside the bean, beyond the bushel and around the world to keep preference for U.S. soy strong. And it’s helping make a valuable impact for soybean farmers like you. See more ways the soy checkoff is maximizing profit opportunities for soybean farmers at unitedsoybean.org
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