MSR&PC Annual Report 2022

Minneso ta Soyb ean 2022 An nual Re port

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Table of Contents Edition

GamE ON

EngagEmEnts

P. 4 MS&RPC Board of Directors P. 5 Financial Report P. 7 Letter from the Council Chair

P. 15 Stepping Up P. 17 Safety First P. 19 County Connections P. 21 Council Events

Growing Markets

Farming Forward

P. 9 Making History in Uzbekistan P. 11 Taiwan Trade Deal P. 13 Northern Soy Marketing

P. 23 Checkoff Research P. 25 Ag Innovation Campus P. 26 Council CEO Tom Slunecka: Setting the Foundation

COUNTY AGRONOMI R E N O I S S I ST COMM

N A O L R E 2 C I OFF

FARM E

R

PC MSR& f o board rs to direc

JOE SERBUS

District 5-6 bird island, MN

Cole Trebes ch District 8 springfiel d, MN

usemark

Rochelle Kr

District 8 MN Sherburn,

Bill Zurn*

District 1, 2, 3 Callaway, MN

pat sulliva n

District 56 Franklin, M N

gail don Distr kers fairb ict 8 ault , MN

Kris Folla

nd

District 1, 2, 3 halma, MN

tom frisch

Paul freem a

District 4 N Dumont, M

S

JIM WILLER

District 7 N Luverne, M

glen groth

District 9 Ridgeway, MN

District 4 starbuck, MN

GENE STOEL* District 7

Lake Wilso n, MN

n

patr ic

k o’l

e

ary* Dist ri Bens ct 4 on, M N

RON O

BERM

Distr OLLER Brew ict 7 ster , MN

ben storm District 9 Dover, MN

Lawrence Sukalski

usb director only

Fairmont, MN

*USB DIRECTOR

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Finance Edition

25 5 2 5 2 10 0 110

5 5

4

1 0 0 110

50 0 550

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Playing For Keeps Edition

R E E R A C

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Joe Serbus

MSR&PC CHAIR You’re MSR&PC chair and a checkoff leader! You’ve grown your leadership skills over the years and studied how the checkoff boosts the profitability of your fellow farmers and industry. Directing checkoff funds is not only a privilege, but also a big responsibility. Minnesota farmers depend on you to invest these hard-earned resources in a wise manner. Luckily, you’re up to the task!

In the nearly 50 years since the Minnesota Soybean Research & Promotion Council convened for its first meeting, few were as memorable as 2022 for the Council and the farmers we proudly represent. We emerged from the worst of the pandemic a stronger organization, with a robust, worldwide demand for soy – and, most importantly, elevated commodity prices. We’re also delivering our message from a new home: In spring 2022, we moved into our new headquarters in east Mankato and are excited to welcome the public for events and professional demonstrations in the near future.

In a competitive and tumultuous global marketplace, the Council stood out from the rest and made history – literally – in 2022. Through the Council’s investments in what we call “sweat equity” projects – checkoff endeavors that play the long game toward broadening supply chains and increasing exports in emerging markets – our efforts led to the first shipment of U.S soymeal to the landlocked country of Uzbekistan in August 2022. A few weeks later, Council staff joined my colleagues, Directors Gene Stoel and Patrick O’Leary, on a follow-up trade mission to Uzbekistan. During the tour, the Council team toured Uzbekistan’s agriculture facilities and assessed further checkoff investments into growing this emerging market.

We also directed resources toward promoting agricultural exports via the Great Lakes-St. Lawrence Seaway System, starting at the Port of Duluth. In September 2022, we were pleased to welcome back our friends from Taiwan, who traveled to Minnesota to ink a purchasing deal worth approximately $2 billion that will benefit our state’s soybean and corn farmers. Thanks to the Council’s global vision, it’s no wonder that soybeans are consistently ranked as Minnesota’s most valuable agricultural export, accounting for over $2 billion in sales annually.

Following our successful 2021 Driving Soy campaign, the Council put its best foot forward by continuing to give back to our communities. As part of our Stepping Up campaign, farmer-leaders and staff barnstormed Minnesota, donating thousands of soy-based Skechers shoes to health care personnel. In one of our final Stepping Up events, I joined Director Paul Freeman on a visit to the ICU unit in St. Cloud. We were honored to thank the staff and donate 120 pairs of soy-based shoes to our health care heroes.

We continued reconnecting with farmers and researchers in 2022, capped by our Future of Soybeans retreat. Farmers and industry got down to brass tacks and discussed how to address today’s challenges and capitalize on tomorrow’s opportunities. We launched the “Game of Soy” at Farmfest and highlighted the Stepping Up promotion; the progress of the Ag Innovation Campus; the many professions in agriculture; and our efforts in lowering Foreign Material (FM) in our soybeans. Attendance was high, and the response to our interactive Game of Soy was universally positive. On the final day, Andrea Vaubel, deputy commissioner of the Minnesota Department of Agriculture, turned to MSR&PC Director of Marketing Kristeena Thisius and exclaimed, “This is genius!”

Our work was also recognized by industry leaders in 2022: the Council’s marketing and communications department garnered a record six regional agri-marketing awards, including a Best of Show nod for the Game of Soy and first-place honors for our 2021 Annual Report.

Though challenges always remain – from input costs to weather to global tensions – the prevailing sense among agriculture leaders is that the wind is at our backs. We look forward to upping our game and improving farmer profitability in the year ahead.

Joe Serbus Chair, Minnesota Soybean Research & Promotion Council

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The Sweat Equity Edition

Since 2020, MSR&PC has invested checkoff resources into projects in Uzbekistan to identify the country’s needs for U.S. soy. Council leaders conducted surveys across Uzbekistan’s poultry, dairy and aquaculture industries.

Those forward-thinking efforts paid off in 2022, when this checkoff investment led to the first ever shipment of U.S. soymeal to Uzbekistan, totaling 700 metric tons (MT). This equates to more than 25,000 bushels Council Directors Patrick O'Leary and Gene Stoel followed up on the historic purchase with a trade mission to visit Uzbekistan's agriculture facilities, survey its infrastructure and look into the possibility of future checkoff investments in the country.

Up ahead: History in the Making

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Visiting the emerging market allowed Council directors to speak with local farmers, agronomists, crushing facility and feed mill owners as well as livestock operation owners Working with contractor Chris Andrews, O’Leary and Stoel made connections with business owners who could sell soybeans in Uzbekistan and government officials from the U.S. Embassy as well as the Ministry of Agriculture

Uzbek business leaders expressed interest in future soybean purchases from the U.S. and learning more about the benefits of high-quality U.S. soybeans

Uzbekistan has been an independent country since 1991. The Central Asian country enjoys an abundance of natural resources, including coal, copper, gold, natural gas, oil, silver and uranium

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Beans By the Billions Edition

In 2022, Council Chair Joe Serbus signed a Letter of Intent with the Taiwan Vegetable Oil Manufacturers Association (TVOA), an agreement worth approximately $2 billion that will benefit the state’s nearly 28,000 soybean farmers.

The agreement, which was last signed in 2018, is the culmination of strategic soybean checkoff investments over the decades that focused on growing the Taiwanese market.

In 2018, Council CEO Tom Slunecka joined Taiwanese leaders and Minnesota agriculture officials for a signing ceremony at the Governor’s Mansion. The following year, Slunecka, strengthened the relationships by participating in USDA’s first-ever Taiwanese trade mission.

The TVOA has pledged to purchase between 2.6 million and 2.9 million MT (equivalent to between 96 million and 107 million bushels) of soybeans between 2023 and 2024

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In 2021, the total value of U.S. agricultural and related products exported to Taiwan reached $3.94 billion

As of 2021, Taiwan is the seventh largest market for U.S. agricultural exports. The U.S. supplies about 27% of Taiwan’s agricultural imports Since 1998, Taiwan has imported 40.5 million MT (equivalent to 1.5 billion bushels) of soybeans, a value of $15.1 billion

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Soybean Quality Promotion Edition

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The name of the game in 2022 was the promotion of Minnesota soybeans in Southeast Asia through the investment in Northern Soy Marketing. From market research, focusing primarily on buying habits and knowledge of critical essential amino acid values, to in-person conversations with end users at various international conferences and meetings, the checkoff took a hands-on, more direct approach to building relationships and trust for our high-quality beans.

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Walking the Walk Edition In the summer of 2022, the soybean checkoff launched the Stepping Up: From Farm to Frontline campaign, allowing MSR&PC to showcase a checkoff initiative through Skechers soy-based shoes and the overall versatility of soy. Grower-leaders from across Minnesota donated Skechers shoes to various health care facilities as a way to connect with non-farmers and say “thank you” for their dedication and commitment to their communities.

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Skechers uses the same checkoff-supported technology featured in Goodyear Tire Company’s line of sustainable soy-based tires, which incorporated soy into its rubber technology

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Farm Safety Donation Edition To help bring more grain bin safety equipment to rural communities across Minnesota, the checkoff developed a nomination process for community members to nominate their local first responders to receive one of five aluminum grain bin rescue tubes and auger. Each selected fire department was also trained on how to use the equipment in case of an emergency.

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Ghent Fire Department

Soy Spotlight Edition

Minnesota’s 44 organized soybean counties showcased soy in 2022 through creative promotional and community-minded events. While most counties participated in the Stepping Up campaign, many boards also participated in other projects that boosted the presence of agriculture in their communities.

Lincoln, Murray, Pipestone and Lyon counties broadcasted a video during sporting events. The funding allowed for the creation of the videos and the advertising spots.

Ottertail/Grant County raised $90,000 through business sponsorships to install five North Dakota Agricultural Weather Network (NDAWN) stations throughout the counties.

In summer 2022, RePlay, a soy-based road sealant product, was applied on county Highway 14 in Becker County.

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Nicollet/Sibley County hosted a Soy Sunday Fun Day to promote unique products made with soybeans. The event started with participants painting a farm scene on a canvas. Why paint? Paint is one of the unique products that contain soybean oil. The board also offered a spread of tofu, beef bulgogi skewers marinated in a soy glaze, baked goods and meat products containing soy-based products.

Goodhue County offered grant applications to every fire department in their county to apply for grain bin rescue equipment. The board later hosted a grain bin rescue training session at the Goodhue County Fair.

Renville County spent two days in third grade classrooms teaching students about the lifecycle of soybeans. Working with Minnesota Ag in the Classroom, the growers provided a science project and ag-related books to the students.

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Farmfest Edition

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ST I M NO

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Checkoff-funded research updates were featured in the July-August 2022 issue of Soybean Business. The article focused on projects related to soybean aphids, managing Iron Deficiency Chlorosis, cover crops and more.

ded 24 uncil fun tion o C e h t , c In 2022 o produ he related t s s. T t a c e r je a o r p geted r a t in h ckoff researc sted che e v in il c cts that Coun ard proje new w o t s e c velop resour yield, de mic increase address agrono d n a . s s r we varietie cing gro issues fa

Each y resea ear, the Co rch p u best m rojects ncil spons ors t o unc a n ag pest a nd di ement pra over the sease ctices fertili con ty. for keep This resea trol and so il inform ing Minne rch is vita l to sota f ed of arme the la that r rs te e MSR& searchers st method a P s re te aroun C works with sting. d the g issue s are state to fin rowers be ad the most p d which dress ed ea ressing to ch ye ar.

Checkoff pro investme jects are long-term nts common , but they share a mission: improv farmer p rofitabilit ing y.

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Crushing the Future of Agriculture Edition

The Ag Innovation Campus made big progress in 2022. The AIC team nearly completed construction on the 10-acre site in south Crookston. As part of the AIC’s first phase, a specialty crushing facility will begin production in 2023. The AIC crushing facility will operate on either organic, non-GMO or GM soybeans, as well as separately for each type of soybeans. In addition, the AIC anticipates that in the near future it will also work on other oil seeds, including cover crops. Because of MSR&PC's checkoff support, the AIC will foster an environment that will deliver products and varieties to market quicker than ever, increasing farmer profitability across the state and region.

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Coming 2023

Aginnovationcampus.com

As part of phases 2 & 3, this first-of-its-kind facility will feature: AURI offices and research facilities Demonstration bays for innovative agriculture research conducted by new startup companies A training site to develop the next generation of processing professionals in conjunction with local education centers and technology companies that want to showcase or train customers A Regional Ag Processing Education Center A conference room with ability to host up to 100 people for ag research events A venue to allow customers from around the world a direct connection to premium U.S. agricultural products

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Big Vision Edition

R E E R A C

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Tom Slunecka

MSR&PC CEO Kudos to you! After paying your dues through various levels of agriculture, you're the CEO of the Council. Over the past decade, you've worked tirelessly on behalf of MSR&PC to improve the state's soybean industry and advance Minnesota's farm economy. To succeed as CEO, you must build relationships, be valiant in how you're directing checkoff funds and have a futuristic and optimistic outlook. Have no fear: You fit the bill!

After a landmark year in which the Minnesota Soybean Research & Promotion Council made giant leaps on the path toward profitability, key pieces of our puzzle are falling into place. 2022 saw many long-term Council projects come to fruition – on the local, state, national and global stages, reaffirming our core belief that having big goals can reap bigger rewards.

Our TruSoya high oleic soybean made strides this past year, and a National Institute of Health study showed that TruSoya high oleic soybean oil could lead to improved cardiovascular health in humans.

Looking ahead, TruSoya beans will be crushed and processed at the new home of the Ag Innovation Campus in Crookston starting in summer 2023. The AIC is the culmination of six years of feasibility studies, checkoff investments, countless meetings with industry professionals, Crookston leaders and construction and equipment companies. This project, one of the most ambitious investments the Council has made, will remain a priority in the years ahead; momentum is continuing to build for the AIC as we look toward Phases 2 and 3 of site construction. Word of the AIC has spread throughout the industry, and we’re proud to have broad support as we set a foundation – figuratively and literally – for the future of agriculture.

Plasma Blue, a revolutionary technology that creates biodiesel at a dramatically lower cost while using a different energy source, is another Council initiative that is tailor-made for a global economy seeking viable alternatives to petroleum. Plasma Blue has arrived at the optimal time to service an energy landscape that is changing at a breakneck pace.

This past year also marked my 10th anniversary as Council CEO. From Taiwan to Traverse County, what a ride it’s been! I’m incredibly gratified to look back and recall spirited discussions our board had back in 2012 – those that involved increasing exports via the Port of Duluth or improvements on promoting value-added soybean products – start to show a tangible benefit a decade later. These endeavors take a lot of hard work, and include their fair share of risk, as we know the road to commercialization and new markets can be long and arduous. But I continue to be humbled by the ability of our farmer-led board to look beyond their operations, and their willingness to invest in new opportunities and markets. The Council doesn’t look at Minnesota agriculture from a regional perspective; they truly stand for all of Minnesota’s soybean farmers. Led by Chair Joe Serbus, MSR&PC constantly seeks to collaborate with leaders from all types of commodity groups – and even non-commodities – to make soybean production more profitable. It’s a privilege and blessing to work alongside a group of visionaries who never back down from a challenge while also ensuring that checkoff resources are being used prudently.

In 2023, we’ll build off the triumphant successes of our Driving Soy and Stepping Up promotions. Our organized county program, which has thrived for decades, continues to create inventive ways to connect with their communities and promote the many uses of soybeans. And for the history nerds: The year ahead also marks 50 years since MSR&PC gathered for our first board meeting. While the state and national checkoff program took years to formally launch, the achievements of MSR&PC show that with patience and a united vision, bold ideas can take flight.

Whether we’re on the road to Farmfest or growing international markets with trade partners in Southeast Asia, the soybean checkoff is going places in 2023. We hope you’ll join us on the journey.

Tom Slunecka CEO, Minnesota Soybean & Research Promotion Council

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Mission Statement

“the Minnesota soybean research and promotion council is the elected board of soybean producers from Minnesota who direct investments of the state’s checkoff dollars in programs designed to increase profitability to Minnesota soybean farmers”

2023 More profitability

Bigger ideas

Annual Report of Program Area Expenditures Fiscal year September 1, 2021 - August 31, 2022 Certified through an independent audit by the accounting firm of Schlenner Wenner & Co.

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1020 Innovation Lane., Mankato, MN 56001 1-888-896-9678 | www.mnsoybean.org