MSR&PC's 2023 Annual Report

BOLD Investments

Minnesota Soybean 2023 Annual Report

4. Board of DIRECTORS

Letter from the CHAIR

Being BOLD Abroad

BOLD ideas. Big Results.

BOLDLY building the next generation

BOLD ideas. forwards thinking

14.

a BOLD leap into the future

a BOLD new Direction

BOLD on the waterways

Being BOLD statewide

BOLD PArtnerships

BOLD Move East

FY23 FINANCIALS

Board of DIRECTORS

Pat Sullivan (Secretary) District 5 & 6

Ben Storm (Treasurer) District 9

Dumont, MN

320-808-1002

TFrisch@mnsoybean.com

Faribault, MN

507-202-2042

GDonkers@mnsoybean.com

Callaway, MN

218-849-5289

BZurn@mnsoybean.com

Halma, MN

218-791-2156

KFolland@mnsoybean.com

Franklin, MN

320-894-5917

PSullivan@mnsoybean.com

Dover, MN

507-993-4623

BStorm@mnsoybean.com

Patrick O’Leary

Benson, MN

320-760-5335

POLeary@mnsoybean.com

6

Bird Island, MN

507-828-7869

JSerbus@mnsoybean.com

Tom Frisch (Chair) District 4

Gail Donkers (Vice Chair) District 8

Bill Zurn District 1-2 & 3

District 4

Kris Folland District 1-2 & 3

Joe Serbus District 5 &

Starbuck, MN

PFreeman@mnsoybean.com

Luverne, MN 507-227-3725

JWillers@mnsoybean.com

Gene Stoel* District 7

Lake Wilson, MN 507-879-3483

GStoel@mnsoybean.com

Ron Obermoller District 7

Brewster, MN 507-360-4863

RObermoller@mnsoybean.com

Sherburn, MN 507-236-3625

RKrusemark@mnsoybean.com

Springfield, MN 507-227-3263

CTrebesch@mnsoybean.com

Glen

Ridgeway, MN

GGroth@mnsoybean.com

Paul Freeman District 4

Jim Willers* District 7

Rochelle Krusemark* District 8

Cole Trebesch District 8

Groth District 9

a YEAR of BOLD Moves.

Fifty years since we held our first board meeting, the soy checkoff continues taking bold strides in the research, promotion and education of Minnesota-grown soybeans. 2023 was no exception.

This year, the checkoff made advances in new export markets, including Uzbekistan and Morocco. We also weren’t afraid to take the road less traveled by partaking in a “See for Yourself” mission to Halifax, Nova Scotia, exploring the possibilities of expanding the use of the Port of Duluth-Superior and St. Lawrence Seaway.

Not only did our checkoff investments make bold moves across the world, but in Minnesota, too. In 2023, we saw the completion of the first phase of the Ag Innovation Campus, introduced augmented reality as a digital tool and funded 35 agronomic research projects. And, as the only state with an organized county program, Minnesota

builds off a grassroots foundation that boldly sets us apart within the soybean industry. Minnesota soybean growers are bold – it’s only fitting that MSR&PC have a similar mindset. Our farmers place their livelihoods in the hands of factors out of their control – from Mother Nature’s whims to volatile markets – and trust our organization to invest soybean checkoff dollars wisely to increase their profitability.

We look forward to continuing being bold this next year. Just you watch!

Tom Frisch Chair, Minnesota Soybean Research & Promotion Council

Being BOLD Abroad.

Being bold means bringing beans beyond the borders. By developing international markets, the checkoff continues to be the building blocks to get more beans abroad through sponsorships, partnerships and memberships. In 2023, the checkoff supported 25 projects to break barriers, develop international relations and continue bringing Minnesota-origin soybeans to ports across the world.

X2

As more crush facilities come online, the checkoff has supported the development of doubling the capacity of the Grays Harbor facility in the Pacific Northwest to aid in meeting the demand for international export opportunities.

9

The checkoff partnered with the Specialty Soya and Grains Alliance on nine projects in 2023, which focuses on identity preserved soybeans and specialty grains.

$8.16B

As a result of the checkoff partnering with the U.S. Meat Export Federation, the U.S. saw record pork exports to countries around the world.

BOLD idea. BIG results.

In just five years, the Ag Innovation Campus blossomed from a bold idea to a big reality. The AIC – with soy checkoff support – launched production in 2023, culminating in a Grand Opening ceremony in Crookston. At full potential, the AIC will serve as part specialty crush facility, part research lab and office space, and part educational facility – propelling the soy checkoff toward a new future.

The non-for-profit, 16-000 square facility will operate 324 days yearly and produce an estimated 240 tons of soybean meal daily (about eight semi loads), equating to 62,400 tons of soybean meal per year.

BOLDLY Building the NEXT Generation.

The checkoff is molding the next generation of agriculturists. From future leaders, farmers and ag industry professionals, our bold investments are building a strong prospective workforce.

This year, the checkoff funded a combined 4-H and FFA forage crop scouting event and the FFA plant science competition. In addition, the checkoff hosted the Minnesota FFA state officers and staff at their headquarters and gave a “Soybeans 101” course on how our organization works to improve farmer profitability.

BOLD Ideas. FORWARD Thinking.

One-third of the production research projects funded in 2023 focused on future or potential agronomic threats. Through checkoff investments, this bold, proactive approach helps combat issues before they arise and digs deep to uncover answers today for questions that’ll be asked tomorrow.

In 2023, the Council funded 35 projects in three topic areas

A BOLD leap into the FUTURE.

The soybean checkoff set its eyes to the future by developing two augmented reality farmers – Sandy and Paul – to showcase how today’s bold checkoff investments will have a lasting impact on tomorrow’s soybean farmers. The augmented reality digital tool was utilized through numerous events, social media, print publications and more.

The augmented reality tool was first launched August 2023 at the Minnesota Soybean booth during Farmfest.

A BOLD NEW direction.

With changes in the renewable fuel market, bringing an increased demand for soy oil, the checkoff has shifted its focus to finding new markets and uses for soybean meal. By utilizing new technologies, the checkoff transforms familiar products into new opportunities, creating more value-added uses for soy. In 2023, the checkoff funded a variety of new soybean meal projects. Here’s a look at three up-and-coming bold innovations.

Biodegradable plastic from soybean hulls Soybean meal horticultural fertilizer Soy 3D edible printing ink

BOLD on the WATERWAYS.

In an industry stifled by supply chain issues and historically low levels on the Mississippi River, the checkoff looks for creative routes to deliver soy to developing markets. In 2023, grower leaders promoted exports via ports in Duluth and Halifax, Nova Scotia. In May 2023, the checkoff organization welcomed a team of Moroccan buyers to Duluth to take a closer look at the port’s capabilities. A few months later, they led a See For Yourself mission to Halifax for a water-level view of export opportunities to Europe and North Africa.

The St. Lawrence Seaway, the “Opportunity Belt” that traverses 2,300 miles from the head of the Great Lakes in Duluth to the Atlantic Ocean, currently accounts for only about 2% of U.S. soybean exports.

Being BOLD Statewide.

From Lake of the Woods to Luverne, the checkoff’s unique county soybean program never runs out of bold ideas. Whether hosting a Soy Sunday Fun Day or donating grain bin rescue equipment, the checkoff organization’s 44 organized counties were on the frontlines in 2023, promoting soybeans throughout their local communities.

Nicollet-Sibley board members host a Soy Sunday Fun Day. Using soy-based stains, attendees had a variety of options to use for their charcuterie boards.

Built BOLDLY.

The checkoff is boldly building a high value marketplace with its continued work on TruSoya®, a high oleic, heart healthy soybean variety. In 2023, 35 acres of the new seed variety was planted and harvested in Minnesota. To build on the groundbreaking investment, the variety was also processed for the first time at the Ag Innovation Campus in Crookston to progress research and testing.

BOLD partnerships.

Bold investments require bold partners, and that’s exactly what the checkoff has in Gopher Sports. Through its investment with the football and men’s basketball teams, the checkoff organization has been able to show the positive impacts biodiesel has on carbon reduction while shining a positive light on the soy innovations coming out of the University of Minnesota.

BOLD Move EAST.

What’s bolder than going where few others have ventured?

Following the first shipment of U.S. soybean meal to Uzbekistan, the Council kicked off 2023 with a trade mission to the country. Since then, the checkoff’s in-country representative has worked to expand trade between the two countries, especially through the Port of Duluth and St. Lawrence Seaway.

March 2021

Council makes initial checkoff investments to establish soy export markets to Uzbekistan.

September 2022

Council leaders, including Directors Patrick O’Leary and Gene Stoel, embark on its maiden trade mission to Uzbekistan.

August 2022

First-ever shipment of 700 metric tons of U.S. soybean meal was shipped to Uzbekistan.

2023 - Present

MSR&PC continues nurturing relations with Uzbekistan through its in-country representative, Chris Andrew.

FY23 FINANCIALS

Management, Compliance & Governance

$1,493,244

Soy Product Development Export Promotion

$2,303401

TOTAL EXPENSES

$13.69 M

$1,575,501

High impact opporunities Influencer education

$3,402,986

$2,244,236

$833,660 Agronomic Research Communications

$1,841,817

Annual Report of Program Area Expenditures

Fiscal year Sept. 1, 2022 - Aug. 31, 2023

Certified through an independent audit by the accounting firm of Schlenner Wenner & Co.

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