Ohio Soybean Council Investor Report 2016

25

th

To learn more about the Ohio Soybean Council and its programs to support Ohio soybean farmers, please visit our website: SOYOHIO.ORG.

OH IO SOYBEAN COUNCIL 2016 INVESTOR REPORT Celebrating 25 years of maximizing farmer profitability.

The Ohio Soybean Council (OSC) was founded in 1991 to manage the Soybean Promotion and Research Program, more commonly known as the soybean checkoff. OSC is governed by a volunteer farmer board, which directs the investments of the checkoff. The program’s primary goal is to improve soybean profitability by targeting research and development, education and promotion projects.

TERRY MCCLURE CHAIRMAN OF THE BOARD OHIO SOYBEAN COUNCIL

This year, the Ohio Soybean Council (OSC) celebrated its 25th anniversary. In 1991, the Soybean Promotion and Research Program was passed as a provision of the Farm Bill, creating the national soybean checkoff. Here in Ohio, OSC was formed to manage the state’s portion of checkoff dollars and works to increase the profitability of Ohio soybean farmers. This year also marked the 50th anniversary of our sister organization, the Ohio Soybean Association (OSA), which works on the legislative priorities of its members.

To put these anniversaries in perspective, think about how much our industry has changed in the last 25 and 50 years: • In 1965, 2 million Ohio acres were planted with soybeans. In 2015, Ohio farmers planted 4.9 million acres of soybeans.

• In 1965, the average production of soybeans was less than 25 bushels per acre.

In 2015, it was 50 bushels per acre.

• In 1969, Ohioan Neil Armstrong became the first person to walk on the moon. A few months ago, Ohio farmers were riding in satellite-linked combines and uploading yield data to a cloud.

Since their founding, these farmer-led organizations have helped support the industry through huge technological advances, ups and downs in the farm economy and a changing global market.

The original farmer-leaders had the foresight to set a strong foundation. They didn’t know soybeans would become a leading feedstock for industrial products or that biodiesel would become America’s first advanced biofuel. They didn’t know about high-oleic soybeans or how big the Chinese market would become. They didn’t know what would happen, but they believed it was possible.

It has been my pleasure to lead this board through this past year as we continue to make advances and deliver on our commitment to producing a safe, healthy food supply while ensuring the long-term profitability of the Ohio soybean industry.

Sincerely,

Terry McClure

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 1

TERRY MCCLURE CHAIRMAN OF THE BOARD OHIO SOYBEAN COUNCIL

This year, the Ohio Soybean Council (OSC) celebrated its 25th anniversary. In 1991, the Soybean Promotion and Research Program was passed as a provision of the Farm Bill, creating the national soybean checkoff. Here in Ohio, OSC was formed to manage the state’s portion of checkoff dollars and works to increase the profitability of Ohio soybean farmers. This year also marked the 50th anniversary of our sister organization, the Ohio Soybean Association (OSA), which works on the legislative priorities of its members.

To put these anniversaries in perspective, think about how much our industry has changed in the last 25 and 50 years: • In 1965, 2 million Ohio acres were planted with soybeans. In 2015, Ohio farmers planted 4.9 million acres of soybeans.

• In 1965, the average production of soybeans was less than 25 bushels per acre.

In 2015, it was 50 bushels per acre.

• In 1969, Ohioan Neil Armstrong became the first person to walk on the moon. A few months ago, Ohio farmers were riding in satellite-linked combines and uploading yield data to a cloud.

Since their founding, these farmer-led organizations have helped support the industry through huge technological advances, ups and downs in the farm economy and a changing global market.

The original farmer-leaders had the foresight to set a strong foundation. They didn’t know soybeans would become a leading feedstock for industrial products or that biodiesel would become America’s first advanced biofuel. They didn’t know about high-oleic soybeans or how big the Chinese market would become. They didn’t know what would happen, but they believed it was possible.

It has been my pleasure to lead this board through this past year as we continue to make advances and deliver on our commitment to producing a safe, healthy food supply while ensuring the long-term profitability of the Ohio soybean industry.

Sincerely,

Terry McClure

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 1

2016 FINANCIAL REVIEW

TOTAL PROGRAM DISBURSEMENTS YEAR ENDED SEPTEMBER 30, 2016

$5,278,310

ASSESSMENT RECEIPTS FROM FIRST PURCHASERS

$12,655,946 LESS ASSESSMENT RECEIPTS REMITTED TO THE UNITED SOYBEAN BOARD

$5,560,045

DEMAND

$1,208,919

ASSESSMENT RECEIPTS REMITTED TO OTHER STATES

$1,198,369 NET ASSESSMENT RECEIPTS

$5,897,532 INVESTMENT INCOME

$19,693 GRANTS

$109,696

RESEARCH

$2,139,471

TOTAL ADDITIONS TO FUND BALANCE

$6,026,921 ADMINISTRATIVE DISBURSEMENTS

$848,288 TOTAL DEDUCTIONS FROM FUND BALANCE

$6,126,598 COMMUNICATION/EDUCATION NET DECREASE IN CASH INVESTMENTS

$(99,677)

$1,929,920

BEGINNING CASH INVESTMENTS

$9,938,212 ENDING CASH INVESTMENTS

$9,838,535 2 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 3

2016 FINANCIAL REVIEW

TOTAL PROGRAM DISBURSEMENTS YEAR ENDED SEPTEMBER 30, 2016

$5,278,310

ASSESSMENT RECEIPTS FROM FIRST PURCHASERS

$12,655,946 LESS ASSESSMENT RECEIPTS REMITTED TO THE UNITED SOYBEAN BOARD

$5,560,045

DEMAND

$1,208,919

ASSESSMENT RECEIPTS REMITTED TO OTHER STATES

$1,198,369 NET ASSESSMENT RECEIPTS

$5,897,532 INVESTMENT INCOME

$19,693 GRANTS

$109,696

RESEARCH

$2,139,471

TOTAL ADDITIONS TO FUND BALANCE

$6,026,921 ADMINISTRATIVE DISBURSEMENTS

$848,288 TOTAL DEDUCTIONS FROM FUND BALANCE

$6,126,598 COMMUNICATION/EDUCATION NET DECREASE IN CASH INVESTMENTS

$(99,677)

$1,929,920

BEGINNING CASH INVESTMENTS

$9,938,212 ENDING CASH INVESTMENTS

$9,838,535 2 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 3

TECHNOLOGY THAT COULD REVOLUTIONIZE

THE MODERN AQUACULTURE INDUSTRY Ohio Soybean Council (OSC) funded research partners Battelle and Kentucky State University to develop and evaluate a patent-pending technology that could revolutionize the modern aquaculture (fish farming) industry and is now seeking commercial partners. The technology completely removes non-digestible carbohydrates (oligosaccharides) without compromising the amino acidcomposition, making it easier for fish to digest. Initial testing has shown that EnzoMeal™, an improved soybean meal, outperforms 100 percent fish meal diets. For more information on the technology, nutritional analysis, fish studies and commercialization, please visit enzomeal.org.

PROJECTED GLOBAL SEAFOOD CONSUMPTION

DEMAND Driving demand for soybeans continues to be a top priority, and we are pushing hard on multiple fronts.

2030

2009 67.9

55.0

58.2

93.6

45%

62%

FARM RAISED

FARM RAISED

(MILLION TONS)

RAINBOW TROUT

YELLOW PERCH

WHAT’S IN A SOYBEAN?

FARM RAISED

WHITE SHRIMP

FISH STUDIED

Protein (amino acids) ............................ 36% Insoluble carbohydrates (fiber) ..........19% Moisture ..................................................... 13% Soluble carbohydrates .......................... 9% Ash .............................................................. 4% Oil ................................................................ 19%

WILD CAUGHT

CATFISH

LARGEMOUTH BASS

ASIAN SEA BASS

ATLANTIC SALMON

FUTURE COMMERCIALIZATION

Sources: FAQSTAT (2014) // Fish to 2030 (2013) 4 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 5

TECHNOLOGY THAT COULD REVOLUTIONIZE

THE MODERN AQUACULTURE INDUSTRY Ohio Soybean Council (OSC) funded research partners Battelle and Kentucky State University to develop and evaluate a patent-pending technology that could revolutionize the modern aquaculture (fish farming) industry and is now seeking commercial partners. The technology completely removes non-digestible carbohydrates (oligosaccharides) without compromising the amino acidcomposition, making it easier for fish to digest. Initial testing has shown that EnzoMeal™, an improved soybean meal, outperforms 100 percent fish meal diets. For more information on the technology, nutritional analysis, fish studies and commercialization, please visit enzomeal.org.

PROJECTED GLOBAL SEAFOOD CONSUMPTION

DEMAND Driving demand for soybeans continues to be a top priority, and we are pushing hard on multiple fronts.

2030

2009 67.9

55.0

58.2

93.6

45%

62%

FARM RAISED

FARM RAISED

(MILLION TONS)

RAINBOW TROUT

YELLOW PERCH

WHAT’S IN A SOYBEAN?

FARM RAISED

WHITE SHRIMP

FISH STUDIED

Protein (amino acids) ............................ 36% Insoluble carbohydrates (fiber) ..........19% Moisture ..................................................... 13% Soluble carbohydrates .......................... 9% Ash .............................................................. 4% Oil ................................................................ 19%

WILD CAUGHT

CATFISH

LARGEMOUTH BASS

ASIAN SEA BASS

ATLANTIC SALMON

FUTURE COMMERCIALIZATION

Sources: FAQSTAT (2014) // Fish to 2030 (2013) 4 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 5

OSC IS BUSILY VISITING ALL PARTS OF THE WORLD,

OPENING DOORS

INDIA

JAPAN

FOR MORE SOYBEAN

DEMAND. OSC has invested in an on-farm critical infrastructure program over the last year to determine the efficacy of farmers accessing natural gas. OSC has since made available an Excel worksheet where farmers can calculate costs, annual savings and the estimated pay-off period in years if they make the switch to natural gas.

HONG KONG, CHINA SRI LANKA

TO HELP DRIVE DEMAND FOR SOYBEANS, OSC CONTINUES TO PARTNER WITH THE USA POULTRY AND EGG EXPORT COUNCIL

TO PROMOTE TURKEY EXPORTS

TO CENTRAL AMERICA AND

CHICKEN EXPORTS TO MEXICO.

OSC PARTNERED WITH THE OHIO PORK COUNCIL

TO COMPLETE A PROCESSOR STUDY THAT FOUND OHIO TO BE A SUITABLE

PLACE FOR MORE PROCESSING.

TO FURTHER INCREASE BIODIESEL USE,

INCREASED PROCESSING

WOULD SIGNIFICANTLY INCREASE THE

DEMAND FOR PORK

IN OHIO, FURTHER DRIVING

DEMAND FOR SOYBEANS.

6 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OSC HAS INVESTED IN BIODIESEL PROJECTS FOCUSED ON CONNECTING WITH RETAILERS TO REACH FARMERS AND ENCOURAGE THEM TO PURCHASE BIODIESEL. OSC REACHED OUT TO SEVERAL RETAILERS AND COMMUNICATED WITH HUNDREDS OF FARMERS ENCOURAGING THEM TO PURCHASE BIODIESEL. OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 7

OSC IS BUSILY VISITING ALL PARTS OF THE WORLD,

OPENING DOORS

INDIA

JAPAN

FOR MORE SOYBEAN

DEMAND. OSC has invested in an on-farm critical infrastructure program over the last year to determine the efficacy of farmers accessing natural gas. OSC has since made available an Excel worksheet where farmers can calculate costs, annual savings and the estimated pay-off period in years if they make the switch to natural gas.

HONG KONG, CHINA SRI LANKA

TO HELP DRIVE DEMAND FOR SOYBEANS, OSC CONTINUES TO PARTNER WITH THE USA POULTRY AND EGG EXPORT COUNCIL

TO PROMOTE TURKEY EXPORTS

TO CENTRAL AMERICA AND

CHICKEN EXPORTS TO MEXICO.

OSC PARTNERED WITH THE OHIO PORK COUNCIL

TO COMPLETE A PROCESSOR STUDY THAT FOUND OHIO TO BE A SUITABLE

PLACE FOR MORE PROCESSING.

TO FURTHER INCREASE BIODIESEL USE,

INCREASED PROCESSING

WOULD SIGNIFICANTLY INCREASE THE

DEMAND FOR PORK

IN OHIO, FURTHER DRIVING

DEMAND FOR SOYBEANS.

6 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OSC HAS INVESTED IN BIODIESEL PROJECTS FOCUSED ON CONNECTING WITH RETAILERS TO REACH FARMERS AND ENCOURAGE THEM TO PURCHASE BIODIESEL. OSC REACHED OUT TO SEVERAL RETAILERS AND COMMUNICATED WITH HUNDREDS OF FARMERS ENCOURAGING THEM TO PURCHASE BIODIESEL. OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 7

RESEARCH Advancing soybean science through innovative research and development creates value for Ohio soybean farmers and brings solutions to consumers.

OSC INVESTED IN TWO PROJECTS WITH REICHHOLD, A GLOBAL SUPPLIER TO THE COMPOSITE AND COATING INDUSTRY, THAT COULD REQUIRE

30-40 MILLION LBS. OF SOYBEAN OIL, WHICH IS 3-4 MILLION BU. OF SOYBEANS. PROJECT

1

CREATE A NEW WATERBORNE

CREATE A NEW WATERBORNE

MODIFIED URETHANE

ALKYD COPOLYMER

SOYBEAN OIL that would have lower volatile organic compounds than current commercial products to better comply with government regulations. It would be used in

WOOD FINISHES AND COATINGS. 8 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

SOY-BASED

PROJECT

2

LATEX COATING WITH IMPROVED STAIN BLOCKING

for commercial and residential indoor applications.

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 9

RESEARCH Advancing soybean science through innovative research and development creates value for Ohio soybean farmers and brings solutions to consumers.

OSC INVESTED IN TWO PROJECTS WITH REICHHOLD, A GLOBAL SUPPLIER TO THE COMPOSITE AND COATING INDUSTRY, THAT COULD REQUIRE

30-40 MILLION LBS. OF SOYBEAN OIL, WHICH IS 3-4 MILLION BU. OF SOYBEANS. PROJECT

1

CREATE A NEW WATERBORNE

CREATE A NEW WATERBORNE

MODIFIED URETHANE

ALKYD COPOLYMER

SOYBEAN OIL that would have lower volatile organic compounds than current commercial products to better comply with government regulations. It would be used in

WOOD FINISHES AND COATINGS. 8 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

SOY-BASED

PROJECT

2

LATEX COATING WITH IMPROVED STAIN BLOCKING

for commercial and residential indoor applications.

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 9

UNIVERSITY RESEARCH With funding from OSC, the soybean team at The Ohio State University continues to make strides in plant, soil and water research to help Ohio soybean farmers back on the farm.

As of today, OSC has received over $900,000 in royalties from products they have developed with their research partners. The royalties collected are reinvested in scholarships and education programs in the STEM areas: science, technology, engineering and mathematics.

OSC INVESTED IN RESEARCH TO DEVELOP

SOY-PK

DR. STEVE CULMAN

WEED MANAGEMENT DR. MARK LOUX

Soybean researchers at OSU are in the

IN COOPERATION WITH OTHERS,

SOIL FERTILITY process of refining Ohio’s fertilizer

DR. LOUX HELPED PRODUCE THE

recommendations for soybeans. The goal

WEED CONTROL GUIDE FOR OHIO, INDIANA AND ILLINOIS.

is to determine optimal economic phosphorus and potassium fertilization rates for soybeans. Dr. Steve Culman and others are also trying to identify the impact soil fertility levels have on populations of, and corresponding yield reductions caused by, soybean cyst nematode, soilborne pathogens and insect pests.

A PATENT-PENDING RESIN TECHNOLOGY

TO REPLACE PETROLEUM BASED BISPHENOL A

CURRENTLY USED IN FOOD AND BEVERAGE CANS.

WATER QUALITY

He is also continuing his work on a project to: 1. Identify new species of glyphosate resistant weeds.

2. Conduct research to develop management strategies for proper weed control.

DR. ELIZABETH DAYTON

Dr. Libby Dayton is working to revise the Ohio Phosphorus Index. An important aspect of that work is to re-evaluate the way various methods of fertilizer and

TWO R&D 100 AWARDS

manure placement are scored. Ultimately, Dr. Dayton’s work will contribute to the ongoing efforts of On-Field Ohio to revise the Ohio P Index, as well as to develop best practices as they relate to water quality for Ohio corn and soybean growers.

IN RECOGNITION OF TOP INNOVATIONS THAT HELP MAKE OUR ENVIRONMENT

GREENER AND OUR GOAL TOWARD ENERGY REDUCTION CLOSER.

2015 EUROPEAN COATINGS INNOVATION EVENT TOP 10

INNOVATIVE TECHNOLOGIES OF THE YEAR.

2016 BIO-BASED INNOVATION AWARDS SECOND PLACE, BIO-BASED CHEMICAL

INNOVATION OF THE YEAR.

BIO-YIELD BENEFICIAL MICROBIAL INOCULANT SYSTEM WINS R&D 100

GREEN TECH MERIT AWARD. Improved biologic products for agriculture address one of the most critical issues we face: how to increase food production by 100% over the next 30 years with less available farmland and with less negative impact on the environment. Biologics in agriculture can be used to decrease our dependence on synthetic chemicals and improve quality and yields of crop plants.

But these living products cannot work well if they are not viable and living at the point of use.

THE BIO-YIELD MICROBIAL INOCULANT SYSTEM IS ACTIVATED ON-FARM to deliver the freshest and most viable biologic product in the world. This novel approach opens the potential for commercialization of numerous beneficial microbes proven in research but never before commercially available in a viable state.

10 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 11

UNIVERSITY RESEARCH With funding from OSC, the soybean team at The Ohio State University continues to make strides in plant, soil and water research to help Ohio soybean farmers back on the farm.

As of today, OSC has received over $900,000 in royalties from products they have developed with their research partners. The royalties collected are reinvested in scholarships and education programs in the STEM areas: science, technology, engineering and mathematics.

OSC INVESTED IN RESEARCH TO DEVELOP

SOY-PK

DR. STEVE CULMAN

WEED MANAGEMENT DR. MARK LOUX

Soybean researchers at OSU are in the

IN COOPERATION WITH OTHERS,

SOIL FERTILITY process of refining Ohio’s fertilizer

DR. LOUX HELPED PRODUCE THE

recommendations for soybeans. The goal

WEED CONTROL GUIDE FOR OHIO, INDIANA AND ILLINOIS.

is to determine optimal economic phosphorus and potassium fertilization rates for soybeans. Dr. Steve Culman and others are also trying to identify the impact soil fertility levels have on populations of, and corresponding yield reductions caused by, soybean cyst nematode, soilborne pathogens and insect pests.

A PATENT-PENDING RESIN TECHNOLOGY

TO REPLACE PETROLEUM BASED BISPHENOL A

CURRENTLY USED IN FOOD AND BEVERAGE CANS.

WATER QUALITY

He is also continuing his work on a project to: 1. Identify new species of glyphosate resistant weeds.

2. Conduct research to develop management strategies for proper weed control.

DR. ELIZABETH DAYTON

Dr. Libby Dayton is working to revise the Ohio Phosphorus Index. An important aspect of that work is to re-evaluate the way various methods of fertilizer and

TWO R&D 100 AWARDS

manure placement are scored. Ultimately, Dr. Dayton’s work will contribute to the ongoing efforts of On-Field Ohio to revise the Ohio P Index, as well as to develop best practices as they relate to water quality for Ohio corn and soybean growers.

IN RECOGNITION OF TOP INNOVATIONS THAT HELP MAKE OUR ENVIRONMENT

GREENER AND OUR GOAL TOWARD ENERGY REDUCTION CLOSER.

2015 EUROPEAN COATINGS INNOVATION EVENT TOP 10

INNOVATIVE TECHNOLOGIES OF THE YEAR.

2016 BIO-BASED INNOVATION AWARDS SECOND PLACE, BIO-BASED CHEMICAL

INNOVATION OF THE YEAR.

BIO-YIELD BENEFICIAL MICROBIAL INOCULANT SYSTEM WINS R&D 100

GREEN TECH MERIT AWARD. Improved biologic products for agriculture address one of the most critical issues we face: how to increase food production by 100% over the next 30 years with less available farmland and with less negative impact on the environment. Biologics in agriculture can be used to decrease our dependence on synthetic chemicals and improve quality and yields of crop plants.

But these living products cannot work well if they are not viable and living at the point of use.

THE BIO-YIELD MICROBIAL INOCULANT SYSTEM IS ACTIVATED ON-FARM to deliver the freshest and most viable biologic product in the world. This novel approach opens the potential for commercialization of numerous beneficial microbes proven in research but never before commercially available in a viable state.

10 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 11

THIS YEAR, OSC INVESTED IN THE DEVELOPMENT AND IMPROVEMENT OF THE

SOYBEAN REWARDS SITE designed to keep farmers up to date on the latest information and data from OSU researchers. Ads were also developed informing farmers of the latest information in research and were placed in the Ohio Soybean News magazine. soybeanrewards.org.

OSC SUPPORTED THE NIGHT FOR YOUNG PROFESSIONALS AT BOTH WILMINGTON COLLEGE AND THE OHIO STATE UNIVERSITY REACHING OVER 200 STUDENTS.

WATER QUALITY CONTINUES TO BE

A PRIORITY The goal of this initiative is to change the conversation about grain farmers’ role in water quality and to ensure people understand the commitments and investments grain farmers have made to positively impact the issue.

TO COMMUNICATE DIRECTLY WITH CONSUMERS, OSC WAS PRESENT AT THE OHIO STATE FAIR, MEETING THOUSANDS OF

VISITORS

OVER

THE

COURSE

OF

THE

12-DAY

FAIR.

SATURDAY, AUGUST 6, WAS SOYBEAN DAY AND OHIO SOYBEAN

COMMUNICATION AND EDUCATION OSC supports many programs to help tell the story of Ohio soybean farmers to those who are unfamiliar with agriculture, as well as to influence and educate the next generation.

12 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

FARMERS LOCATED AT THE ENTRANCE GREETED MANY OF THE

105,000 VISITORS ENTERING THE FAIR. EDUCATION CONTINUES TO BE A PRIORITY FOR OSC, AND INVESTING IN GROW NEXT GEN HAS CERTAINLY PAID OFF.

THE TEACHER NETWORK GREW BY

THEY COMPLETED

36 EVENTS REACHING OVER

665,000

REACHED OVER

10,000 USERS

THROUGH

31 PERCENT. STUDENTS. GROWNEXTGEN.ORG OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 13

THIS YEAR, OSC INVESTED IN THE DEVELOPMENT AND IMPROVEMENT OF THE

SOYBEAN REWARDS SITE designed to keep farmers up to date on the latest information and data from OSU researchers. Ads were also developed informing farmers of the latest information in research and were placed in the Ohio Soybean News magazine. soybeanrewards.org.

OSC SUPPORTED THE NIGHT FOR YOUNG PROFESSIONALS AT BOTH WILMINGTON COLLEGE AND THE OHIO STATE UNIVERSITY REACHING OVER 200 STUDENTS.

WATER QUALITY CONTINUES TO BE

A PRIORITY The goal of this initiative is to change the conversation about grain farmers’ role in water quality and to ensure people understand the commitments and investments grain farmers have made to positively impact the issue.

TO COMMUNICATE DIRECTLY WITH CONSUMERS, OSC WAS PRESENT AT THE OHIO STATE FAIR, MEETING THOUSANDS OF

VISITORS

OVER

THE

COURSE

OF

THE

12-DAY

FAIR.

SATURDAY, AUGUST 6, WAS SOYBEAN DAY AND OHIO SOYBEAN

COMMUNICATION AND EDUCATION OSC supports many programs to help tell the story of Ohio soybean farmers to those who are unfamiliar with agriculture, as well as to influence and educate the next generation.

12 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

FARMERS LOCATED AT THE ENTRANCE GREETED MANY OF THE

105,000 VISITORS ENTERING THE FAIR. EDUCATION CONTINUES TO BE A PRIORITY FOR OSC, AND INVESTING IN GROW NEXT GEN HAS CERTAINLY PAID OFF.

THE TEACHER NETWORK GREW BY

THEY COMPLETED

36 EVENTS REACHING OVER

665,000

REACHED OVER

10,000 USERS

THROUGH

31 PERCENT. STUDENTS. GROWNEXTGEN.ORG OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 13

Ohio Soybean Council

Foundation

SOYBEAN ASSOCIATION

OHIO SOYBEAN COUNCIL FOUNDATION

OHIO SOYBEAN ASSOCIATION

The foundation supports agricultural education and scientific research with an eye toward career opportunities in the soybean industry.

This year, the Ohio Soybean Association (OSA) is celebrating its 50th anniversary of providing leadership for Ohio’s soybean producers in promoting effective policies and legislation to ensure a growing and profitable soybean industry.

OSCF AWARDED A TOTAL OF

$36,500 THE FOUNDATION CO-SPONSORED THE

AG BIOTECH ACADEMY, DESIGNED TO HELP TEACHERS UNDERSTAND BIOTECHNOLOGY. IT IS ESTIMATED THAT OVER

IN SCHOLARSHIPS INCLUDING SCHOLARSHIPS FOR

OSA HELD MEETINGS WITH NUMEROUS STATE

AND NATIONAL LEGISLATORS AND VISITED

WASHINGTON, D.C. FOUR TIMES OVER THE COURSE OF THE YEAR,

LOBBYING ON BEHALF OF FARMERS.

GRADUATE AND UNDERGRADUATE STUDENTS FOR THE 2016-2017 SCHOOL YEAR.

14,000 STUDENTS

WORKED TOGETHER WITH OTHER AGRICULTURE GROUPS TO PREVENT TAX HIKES ASSOCIATED WITH CURRENT AGRICULTURAL USE VALUE.

WILL BE IMPACTED BY THEIR TEACHERS’ LOBBIED IN SUPPORT OF THE

PARTICIPATION IN THE ACADEMY.

TRANS-PACIFIC

PARTNERSHIP

TO KEEP TRADE

OSCF AWARDED OVER

OPPORTUNITIES OPEN FOR OHIO SOYBEANS.

$5,000 IN SCHOLARSHIPS TO THE

INVENTION

CONVENTION, A PROGRAM DESIGNED TO HELP K-8 STUDENTS FOSTER CURIOSITY

AND ENGAGE IN THE INVENTION PROCESS.

OSCF awarded $5,500 IN SCHOLARSHIPS to students participating in the state and district science fairs.

14 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

PUSHED FOR THE PASSAGE OF THE

WATER

RESOURCES

DEVELOPMENT ACT,

ACTIVELY LOBBIED

WHICH WILL FUND NECESSARY

RENEWABLE

UPGRADES

AND SUPPORTED THE

INFRASTRUCTURE

FUEL STANDARD AND TAX CREDIT.

VITAL TO AMERICAN

LOCKS AND DAMS.

Worked diligently to decrease trade barriers with Cuba to increase soybean exports.

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 15

Ohio Soybean Council

Foundation

SOYBEAN ASSOCIATION

OHIO SOYBEAN COUNCIL FOUNDATION

OHIO SOYBEAN ASSOCIATION

The foundation supports agricultural education and scientific research with an eye toward career opportunities in the soybean industry.

This year, the Ohio Soybean Association (OSA) is celebrating its 50th anniversary of providing leadership for Ohio’s soybean producers in promoting effective policies and legislation to ensure a growing and profitable soybean industry.

OSCF AWARDED A TOTAL OF

$36,500 THE FOUNDATION CO-SPONSORED THE

AG BIOTECH ACADEMY, DESIGNED TO HELP TEACHERS UNDERSTAND BIOTECHNOLOGY. IT IS ESTIMATED THAT OVER

IN SCHOLARSHIPS INCLUDING SCHOLARSHIPS FOR

OSA HELD MEETINGS WITH NUMEROUS STATE

AND NATIONAL LEGISLATORS AND VISITED

WASHINGTON, D.C. FOUR TIMES OVER THE COURSE OF THE YEAR,

LOBBYING ON BEHALF OF FARMERS.

GRADUATE AND UNDERGRADUATE STUDENTS FOR THE 2016-2017 SCHOOL YEAR.

14,000 STUDENTS

WORKED TOGETHER WITH OTHER AGRICULTURE GROUPS TO PREVENT TAX HIKES ASSOCIATED WITH CURRENT AGRICULTURAL USE VALUE.

WILL BE IMPACTED BY THEIR TEACHERS’ LOBBIED IN SUPPORT OF THE

PARTICIPATION IN THE ACADEMY.

TRANS-PACIFIC

PARTNERSHIP

TO KEEP TRADE

OSCF AWARDED OVER

OPPORTUNITIES OPEN FOR OHIO SOYBEANS.

$5,000 IN SCHOLARSHIPS TO THE

INVENTION

CONVENTION, A PROGRAM DESIGNED TO HELP K-8 STUDENTS FOSTER CURIOSITY

AND ENGAGE IN THE INVENTION PROCESS.

OSCF awarded $5,500 IN SCHOLARSHIPS to students participating in the state and district science fairs.

14 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

PUSHED FOR THE PASSAGE OF THE

WATER

RESOURCES

DEVELOPMENT ACT,

ACTIVELY LOBBIED

WHICH WILL FUND NECESSARY

RENEWABLE

UPGRADES

AND SUPPORTED THE

INFRASTRUCTURE

FUEL STANDARD AND TAX CREDIT.

VITAL TO AMERICAN

LOCKS AND DAMS.

Worked diligently to decrease trade barriers with Cuba to increase soybean exports.

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 15

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2016 OFFICERS Chairman TERRY MCCLURE District 4 Vice Chairman STEVE REINHARD District 6 Treasurer BILL BATESON District 5 Secretary GRETCHEN MOSSBARGER District 14

16 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

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TODD HESTERMAN District 1

CHARLIE TROXELL District 11

NATHAN ECKEL District 2

DAVE DOTTERER District 12

JEFF MAGYAR District 3

AMY DAVIS District 13

PATRICK KNOUFF District 7

DALE PROFIT Ex-Officio

BILL BAYLISS District 8

DAN CORCORAN Ex-Officio

BRET DAVIS District 9

KEITH KEMP Ex-Officio

SCOTT DENLINGER District 10

JOHN MOTTER Ex-Officio

Ohio Soybean Council 918 Proprietors Road, Suite A Worthington, OH 43085 888-SOY-OHIO Phone: 614-476-3100 Fax: 614-476-9576 soyohio.org

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2016 OFFICERS Chairman TERRY MCCLURE District 4 Vice Chairman STEVE REINHARD District 6 Treasurer BILL BATESON District 5 Secretary GRETCHEN MOSSBARGER District 14

16 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

12

14

TODD HESTERMAN District 1

CHARLIE TROXELL District 11

NATHAN ECKEL District 2

DAVE DOTTERER District 12

JEFF MAGYAR District 3

AMY DAVIS District 13

PATRICK KNOUFF District 7

DALE PROFIT Ex-Officio

BILL BAYLISS District 8

DAN CORCORAN Ex-Officio

BRET DAVIS District 9

KEITH KEMP Ex-Officio

SCOTT DENLINGER District 10

JOHN MOTTER Ex-Officio

Ohio Soybean Council 918 Proprietors Road, Suite A Worthington, OH 43085 888-SOY-OHIO Phone: 614-476-3100 Fax: 614-476-9576 soyohio.org

To learn more about the Ohio Soybean Council and its programs to support Ohio soybean farmers, please visit our website: SOYOHIO.ORG.

The Ohio Soybean Council (OSC) was founded in 1991 to manage the Soybean Promotion and Research Program, more commonly known as the soybean checkoff. OSC is governed by a volunteer farmer board, which directs the investments of the checkoff. The program’s primary goal is to improve soybean profitability by targeting research and development, education and promotion projects.