Ohio soybean farmers consistently rank state and federal regulation as their top concern.
The Ohio Soybean Association (OSA) provides leadership for Ohio’s soybean farmers in promoting effective policies and legislation. OSA represents its members at both the state and federal levels, and works cooperatively with its national affiliate, the American Soybean Association. Soybean checkoff dollars cannot be used for lobbying and legislative activities. That’s why your OSA membership is vital to making the soybean industry in Ohio successful and profitable for years to come.
To learn more, visit soyohio.org/membership.
The Ohio Soybean Council was founded in 1991 to manage the Soybean Research and Promotion Program, commonly referred to as the soybean checkoff. Soybean farmers pay one half of one percent of the bushel price to the soybean checkoff when they sell soybeans. Half is sent to the United Soybean Board and half is invested right here in Ohio in soybean production research, marketing and promotion, new product development and education to maximize profit opportunities for soybean farmers.
To learn more, visit soyohio.org/checkoff.
Todd Hesterman
Ohio Soybean Association Chairman Henry County soybean farmer
A Letter From the Chairman
To say that this has been a busy year so far for the Ohio Soybean Association is probably an understatement. We’re doing battle on multiple fronts at the same time, and I can honestly say that I’ve never been as glad to have multiple agricultural associations working on my behalf. This includes the Ohio Soybean Association, American Soybean Association, Ohio Corn & Wheat Growers, Ohio Farm Bureau and many others. We need every voice at the table to ensure we are heard!
At the federal level, the most pressing and concerning issue is with trade. Earlier this summer, the White House announced that the U.S. would place a 25 percent tariff on multiple products from China, and the Chinese have stated they will retaliate. That retaliation could include a 25 percent tariff on soybeans. I encourage you to read the articles in this issue of Ohio Soybean News for more details on this policy and what it might mean for all of us.
We also continue to work with Congress on the 2018 Farm Bill and maintain hope that it can get done by the end of the year.
At home we’re battling continued threats to our freedom to farm due to concerns about algae blooms in Lake Erie. However, on a positive note, a pair of bills were introduced recently, Ohio Senate Bill 299 and Ohio House Bill 634, which would invest significant resources into farm equipment and best management practices that protect water quality.
Farmers have done and will continue to do what is right when it comes to their farms and the environment, but we also applaud this effort by the bills’ sponsors to help us move forward even faster. This is the type of science-based policy that respects agriculture’s role in providing our food supply that will help us achieve our goals. See page 10 for more.
As I write this, we’re getting into fair season and I encourage you to visit your local county fair and support the local kids with their 4-H animals. They work hard all year and would love to have your support!
Sincerely, Todd Hesterman
Ohio Soybean Association Chairman Henry County soybean farmer
President
Allen Armstrong, Clark County
First Vice President
Scott Metzger, Ross County
Vice President
Ryan Rhoades, Marion County
Treasurer
Kerrick Wilson, Preble County
Secretary
Jennifer Wilson-Oechsle, Van Wert County
Chairman
Todd Hesterman
Trustees
Jerry Bambauer, Auglaize County
Trish Cunningham, Knox County
Bret Davis, Delaware County
Adam Graham, Logan County
Caitlyn Heimerl, Industry Affiliate Ex-Officio
Patrick Knouff, Shelby County
Jeff Magyar, Ashtabula County
Jeff McKanna, Hancock County
Cindy Parker, Miami County
Derek Reusser, Holmes County
Jeff Roehm, Highland County
Luke Ryan, Lucas County
Andy Stickel, Wood County
American Soybean Association
Board Representatives
Jerry Bambauer
Bret Davis
Scott Metzger
Staff Credits
Kirk Merritt-Publisher
Jennifer Coleman-Editor
Katie Bauer-Contributing Editor/Staff Writer
Kayla Weaver-Contributing Writer
Brent Warren-Art Director
Barry Falkner-Photo Quality/Proofer
Tony Green-Advertising Production
Ohio Soybean news is published six times a year by the Ohio Soybean Association, 918 Proprietors Rd., Suite A, Worthington, OH 43085. Phone: 614-476-3100. For address corrections contact Ohio Soybean News at 918 Proprietors Rd., Suite A, Worthington, OH 43085.
Web address: www.soyohio.org
E-mail: cdeboard@soyohio.org
Comments and statewide news articles should be sent to the above address. Advertising space reservation 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 Sales Contact:
Matt Herman- (612) 812-5833
matt.herman@dtn.com
Scott
Metzger, First Vice President Scott Metzger of Ross County is First Vice President of the Ohio Soybean Association Board (OSA) and also a member of the Ohio Soybean Council Board. He farms more than 3,100 acres of soybeans, corn and wheat. He received a B.S. in Agronomy and Agricultural Business at The Ohio State University. Scott is the treasurer of the Pickaway County Farm Bureau and a member of the Ohio Corn and Wheat Growers Association.
Q: How did you first get involved with OSA?
A: I was asked by a college friend to apply for ASA's DuPont Young Leader (DYL) program. After I completed DYL, I was asked to attend an OSA board meeting to share my experience in the program and I served a one-year term on the board as the recent DYL graduate. I really enjoyed learning more about OSA, the board, and the work done on behalf of Ohio soybean farmers. That led me to run for the board seat in my area and I am currently serving my second term on the board.
Q: What might someone be surprised to know about you?
A: I like to listen to classical music while I cut soybeans. It is very relaxing.
Q: What have you gained from being a part of OSA?
A: A key thing I've gained is a better understanding of the importance of OSA and the work they do on behalf of Ohio soybean farmers. Our staff works tirelessly on issues that we, as a board, set as policy priorities at the beginning of the year. They do a tremendous job preparing us for visits to the statehouse, media interviews, or just answering grower questions about OSA. Along the same lines, I've also gained a better understanding of how
Meet the Board
well the commodity groups, grain, and livestock work together on behalf of Ohio agriculture. Another thing I've gained are the networking opportunities with other board members from around the state. I enjoy learning about their operations and understanding the different areas of Ohio.
Q: You also serve on the Board of Directors for the American Soybean Association (ASA). How are ASA and OSA different and how do they work together?
A: In December of 2017, I was honored to be elected to serve on ASA. It was a goal of mine to be on the board since becoming involved with OSA. Both groups work diligently to promote the soybean industry at state and national levels by working with members of Congress from around the country. ASA has 26 state affiliates, with OSA being one of them. The affiliate states are represented on the ASA board of directors. OSA and ASA are similar in the way they set policies each year that direct the work of the organization. They work together through the policy setting, membership, working with elected officials and on any issues that affect members in Ohio and nationally. OSA and ASA share similar policy priorities such as water quality, infrastructure, transportation and trade, but they differ in that OSA is working specifically for Ohio farmers and ASA is working for farmers from around the country. ASA policy has to work for all its members, which can differ greatly from the Corn Belt to the South to Delmarva.
Ryan Rhoades, Marion County
Ryan farms nearly 3,000 acres of soybeans and corn in Delaware County. Ryan is a member of the Ohio Soybean Association Board of Trustees and serves as Vice President. In addition to row crops, they run a 2500 head farrow
to finish operation. Ryan is a member of the Ohio Farm Bureau and attends Fite Memorial Baptist Church. He holds a B.S. in Agriculture and Spanish from Wilmington College. Ryan is also a past Beck’s Young Farm Leader, a program that recognizes young Ohio soybean farmers for their leadership and dedication to the soybean industry.
Q: How did you first get involved with OSA?
A: My first experience with the Ohio Soybean Association was when I was nominated for DuPont Young Leader for Ohio in 2007, but I did not take an active role on the board until recently after being nominated as Becks Young Farm Leader in 2015. Since that time I have held two offices on the board, which was Treasurer and now currently acting Vice President.
Q: What might someone be surprised to know about you?
A: I recently discovered that instead of a normal cash transaction for my birth, my folks bartered my delivery for barn siding and a wagon wheel Dad had laying around the farm. I suppose I'm lucky to be here since I was delivered by some witch doctor or something.
Q: What would you tell someone who is thinking about joining OSA?
A: I've noticed as I have gotten older, that if you want something done ask a busy person. Ironically that's generally a farmer/ leader as well. Being part of OSA is a big commitment, but I know very few farmers who are NOT up to the task. We need to be involved at the statehouse, in DC, and our communities constantly reminding others who are not involved in agriculture the why, how, when, where, and what a soybean producer does and frankly why we do it the best. We need soybean producers to be heard so when the final vote is made by our legislatures, they made it with the best information possible to put us in the best position possible to sustain our farming operations. u
Potential for and Impact of Trade Tariffs with China
In recent years, when Ohio soybean farmers surveyed the rows in their fields and checked the quality of the plants, it was fair to assume that every other row would be exported and used by an international consumer. When taking a look at those international consumers, it’s China that has led the way in consumption of US soybeans, taking in more soybeans and soy by-products than all other export markets combined.
However, looming trade issues have seen both sides of this trade partnership threatened with potential tariffs that could have severe economic impact for soybean producers in Ohio and across the U.S. The Ohio Soybean Association (OSA) and American Soybean Association (ASA) are closely monitoring the situation and speaking up on behalf of producers.
“OSA and ASA, along with most other ag organizations, have expressed our concerns and requested other options be considered,” said Kirk Merritt, OSA’s Executive Director. “We know the importance of exports for Ohio farmers and want to maintain favorable trade relations.”
The potential for tariffs stems from two separate sections of law for the United States Department of Commerce. Section 232 gives the administration the authority to impose tariffs in the interest of national security on imports of specific products. Earlier this year, the administration announced tariffs of 25% on imported steel and aluminum, with several countries — including Canada and Mexico — receiving an exemption. This announcement was the start of a number of proposed tariffs from both the U.S. and China.
The U.S. soon proposed 25% duties on Chinese products under Section 301 which is country specific and allows for the Department of Commerce to
investigate trade practices including intellectual property concerns and recommend action be taken. In this case, concerns around China’s practices in dealing with intellectual property with American companies and unfair requirements led to the action.
Both countries have since released proposed considerations of additional tariffs, and on June 15 the U.S. announced it was continuing to move forward with the tariffs as originally outlined. As of press time, those tariffs were due to go into effect on July 6, 2018. OSA and ASA have been speaking up on behalf of soybean producers in hopes that alternative measures can be taken that will not have the same potential impact on our nation’s farmers.
“We should address our trade challenges by increasing our competitiveness, not creating new barriers,” said Allen Armstrong, OSA president and Clark County soybean farmer. “Exports have been one of the few bright spots for
Looming trade issues have seen both sides of this trade partnership threatened with potential tariffs.
farmers in recent years, and we can’t afford another hit to the bottom line.”
In an effort to look at the impact of the proposed tariffs on individual farms, Ben Brown and Ian Sheldon at The Ohio State University’s Department of Agricultural, Environmental, and Developmental Economics have evaluated the effects of a 25% tariff on U.S. soybeans and corn for a representative 1100-acre west central Ohio farm. Over the projected 6-year period (2018–2024) the study shows financial health deteriorates due to lower net returns per acre. In addition, lower commodity prices would place downward pressure on land values and negatively influence net worth on top of lower cash flow. In this farm’s scenario, it is estimated that proposed
SUSTAINABILITY
NEVER GOES OUT OF SEASON
Customers prefer U.S. soy because it’s sustainable. But demands for sustainability continue rising.
Adopting a common practice like planting a cover crop to slow runoff and increase soil organic matter is another step forward in improving your sustainable footprint. Show your commitment to sustainability with a free truck magnet available at unitedsoybean.org/sustainability
Potential Trade Tariffs (Continued)
tariffs could cause the farm’s net worth to drop by 6% with annual net income dropping by 59%.
“Their study reinforces the tremendous benefits exports have been providing U.S. farmers for many years,” said Merritt. “Soybeans are by far the largest U.S. agricultural export and Ohio farmers see the effects even more directly being consistently ranked by USDA as the 6th or 7th largest exporting state.”
In an effort to maintain the strength of international markets for Ohio and U.S. soybeans, the Ohio Soybean Council added a staff position for Global Demand and Market Development Coordinator. The position will focus on building and maintaining international relationships as well as working with state and national livestock groups to promote exports. Keeping a close eye on market access and identifying transportation system
challenges are other aspects of the position that are imperative to keeping Ohio farmers at the forefront of the market.
As international trade continues to be a top issue for Ohio farmers the Ohio Soybean Association and Ohio Soybean Council will continue to work toward innovative solutions to maintain access to key international markets that will maintain a strong demand for Ohio soybeans. u
Exports at a Glance
▶ According to the Ohio Development Services Agency, Ohio’s $1.8 billion in soybean exports in 2017 accounted for more than 3.5 percent of all Ohio commodity exports.
▶ Ohio is the sixth largest producer of soybeans in the U.S., with 4.8 million acres planted in 2017 and more than 60 percent of the state’s entire soybean production exported to international markets.
▶ China imported $13.9 billion in U.S. soybeans in 2017, 61 percent of total U.S. soy exports.
Want to find out more about U.S. soybean exports? Visit www.soystats.com for the numbers.
SUSTAINABILITY
Customers prefer U.S. soy because it’s sustainable. But demands for sustainability continue rising. Carefully managing crop protection technologies increases their long-term effectiveness and decreases your need for additional pest control. Adopting this practice is another step forward in improving your sustainable footprint. Show your commitment to sustainability with a free truck magnet available at unitedsoybean.org/sustainability
OSA and OCWGA Support Bipartisan Legislation to Invest New Resources to Protect Water Quality
The Ohio Soybean Association (OSA) and Ohio Corn & Wheat Growers Association (OCWGA) have endorsed and testified in support of Ohio Senate Bill 299 and Ohio House Bill 643, bipartisan legislation which would invest significant new resources to protect water quality throughout the state.
If approved, the two bills would:
Put-in-Bay to pay for research lab space and monitoring devices;
▶ Invest $3.5 million to support the conservation efforts of the soil and water conservation districts in the Western Lake Erie Basin.
making the health of Lake Erie and other bodies of water a priority.”
HB 643 is sponsored by Rep. Steve Arndt (R-Port Clinton) and Rep. John Patterson (D-Jefferson), while SB 299 is sponsored by Sen. Randy Gardner (R-Bowling Green) and Sen. Sean O’Brien (D-Bazetta).
“This will help even more farmers implement best management practices”
▶ Invest as much as $20 million in farm equipment and other initiatives to reduce phosphorus runoff in the Western Lake Erie Basin;
▶ Invest $10 million to prevent open lake dumping of dredged materials in Lake Erie;
▶ Invest $2.65 million in the Ohio State Sea Grant’s Stone Laboratory near
OSA President Allen Armstrong.
“Ohio grain farmers have demonstrated their commitment to the protection of both soils and water quality by investing their time and money to work with partners and find solutions,” said OCWGA board member Mark Drewes. “We applaud this bipartisan coalition of legislators for
As of press time, SB 299 had passed the Senate.
“This will help even more farmers implement best management practices,” said OSA President Allen Armstrong. “Farmers have invested millions of dollars in research and education to address water quality, and we would welcome new resources from the State of Ohio.”
For more information, please visit formyfarm.com. u
Join OSA for a Chance to Win 50 hours with a Challenger MT500 Tractor
In partnership with Ohio Ag Equipment, all new and renewing Ohio Soybean Association (OSA) members will be entered to win 50 hours with a Challenger MT500 tractor. To qualify, members must have signed up and paid for an OSA membership between October 1, 2017 and September 30, 2018. The winner of the Ohio Ag Equipment drawing will be notified in October 2018. Board members and staff of OSA and Ohio Soybean Council Board of Trustees, as well as Student/Young Adult nonpaying members are not eligible to win.
OSA provides leadership for Ohio’s soybean farmers in promoting effective policies and legislation to ensure a growing and profitable soybean industry. Soybean checkoff dollars, managed by the Ohio Soybean Council, cannot be used for lobbying and legislative activities. That is why OSA memberships are vital to making the soybean industry in Ohio successful for generations to come. Considering membership? Read more, explore the options, and sign up at www.soyohio.org/membership, or call OSA at 614-476-3100. u
Update on the North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA), the trilateral trade agreement between the U.S., Canada and Mexico, has been good to agriculture, and soy growers are watching closely to see how agriculture will fare in a renegotiated NAFTA.
Timeline
As of the end of February, seven rounds of NAFTA negotiations concluded, and while no official negotiating rounds have been announced since, top negotiators from all three countries have been rapidly trying to close the remaining chapters in NAFTA before the Mexican Presidential elections in July.
The United States and Mexico have been pushing for a quick conclusion given the national elections in both countries, however, Canada has been more reticent to move quickly. The three countries struggled to make progress early on due to a slew of “poison” proposals offered by the U.S., however we have seen a renewed fervor to conclude the negotiations since the beginning of 2018. There are still outstanding issues across NAFTA including in the agriculture chapter.
Agriculture Proposals
Chapter 19
Chapter 19 of NAFTA has provided U.S. food and agriculture exporters an effective tool to hold Mexican and Canadian anti-dumping (AD) and countervailing duties (CVD) investigators and administrators accountable through an effective appeals process that can overturn egregious AD and CVD findings and keep markets open for U.S. products. Because of these provisions, U.S. industry sectors, including beef, pork, chicken, corn syrup, apples, and other exported U.S. products, have succeeded
in getting unlawful threats to their market access struck down. Without such dispute-resolution mechanisms, U.S. companies would be forced to contest AD and CVD determinations in lengthy and potentially unreliable Canadian and Mexican court proceedings. Unfortunately, World Trade Organization processes are not a meaningful alternative as they are unduly lengthy and political, and they do not provide for restitution of AD/CVD duties found to be applied improperly.
The application of the dispute settlement provisions under Chapter 19 has been fair and well-reasoned, with 80 percent of panel decisions being unanimous. In addition, home country representations on panels are strong, meaning home countries retain a high degree of national control — higher than the dispute mechanisms in any other U.S. trade agreement.
Regional/Seasonal Anti-Dumping
The United States also tabled a provision to change trade remedy law by redefining domestic industry on a regional or seasonal basis, making it easier for all three nations to impose anti-dumping duties on imports of many types of produce. Such a change in trade remedy law in NAFTA would set a precedent that could be seized upon by trading partners across the globe to pursue the same or similar
provisions in trade agreements to protect their regional or seasonal agricultural interests, which could threaten consistent, duty-free access for agricultural products to Mexico and Canada.
While reports suggest that the United States intends to apply this provision to fruits and vegetables only, Mexico and Canada would likely use this provision to limit exports of a wide variety of agricultural exports from the United States, either by explicitly expanding the change in trade remedy procedures to apply to major U.S. exports, or by retaliating against our products when Mexican or Canadian fruit and vegetable exports are restricted by the imposition of anti-dumping duties by the United States. u
Source: ASA Washington Office
2018 Farm Science Review
Join the Ohio Soybean Council (OSC) and Ohio Soybean Association (OSA) at 441 Friday Avenue at the Molly Caren Ag Center in London, Ohio, during Farm Science
Review on September 18, 19 and 20!
During the show, OSC and OSA board leadership will be on hand to answer questions about the work of both organizations. Learn about the latest in soybean plant research, product development, education, trade, biodiesel, and much, much more.
There will also be games and goodies for the whole family! u
Ohio Soybean Booth #441 Friday Avenue
Molly Caren Ag Center
London, OH
September 18th, 19th, 20th
Katie Bauer Takes on New Position, OSC Global Demand and Market Development Coordinator
The Ohio Soybean Council (OSC) recently announced that Katie Bauer would take on a new role in the organization as Global Demand and Market Development Coordinator. In this position she will manage projects in the areas of export promotion, market access, transportation infrastructure/logistics, as well as value and supply sustainability.
“We’re very excited to see Katie take on this new role and new responsibilities,” said Steve Reinhard, OSC chairman and Marion County soybean farmer. “She’s done a great job in communications and now she’s turning her talents to our global
demand program. I look forward to seeing what she can do.”
Katie held the position of Communications and Project Coordinator with OSC since 2012. In this role she was responsible for day-to-day project management and assisting with farmer outreach campaigns, media relations, consumer outreach, website and social media. She also managed the Ohio Soybean News magazine and Ohio Soybean Council Foundation Scholarship Program.
Katie holds a Bachelor of Arts in Communications from Wittenberg University in Springfield, Ohio. She’s originally from Dublin, Ohio. u
Investing Checkoff Dollars
New tools for managing phosphorus An On-Farm Field Day
August 13th, 2018
9:00 am - 1:00 pm
Dean Farms
2480 County Road 12C Bryan, Ohio, 43506
This Field Day will showcase New Leader G5 variable dry rate nutrient applicator equipment with swath width control. The NL5000 G5 allows for pinpoint application accuracy with a spinner-spreader, targeting the right product to the right place without sacrificing productivity. Demonstrations with parking lot and field pan tests will show the technology in action. Also featured: OSU experts will discuss the latest research informing phosphorus application rates and the new P-risk assessment tool. Host Allen Dean rounds out the presentations with cover crop learning and demonstration plots.
Speakers/demonstrations
Marty Wolske, New Leader: New Broadcast Equipment Technology – A Practical Solution for Dry Nutrient Application
Steve Culman, OSU: Tri-State recommendations update
Libby Dayton, OSU: P risk-index tool
John Schoenhals, Williams County Extension: Phosphorus Placement and Soil Interactions
Allen Dean, Cover Crop Sales & Service
Please note: you will be asked to fill out a brief survey before and after the event.
Registration and Event Details
Dress appropriately for outdoor weather
Coffee, donuts and lunch will be served
RSVP to: Williams County Extension, 419-636-5608 or email ford.806@osu.edu
For questions and event information contact: Karen Chapman, kchapman@edf.org, 740-739-1809
Tri-State Fertilizer Guide and P-Risk Index to be Presented at 2018 Field Days
This summer the Ohio Soybean Council and Ohio Corn & Wheat Growers will be presenting the most up-to-date results from research work done on the Tri-State Fertilizer Guide and P-Risk Index. Check www.formyfarm.com for the latest event calendar where this research information will be presented.
Soybean Progress Around Ohio
As of June 2018
Amy Davis – Warren County
Planting continued into June with the areas soybeans around 70-80% planted at the end of May. It’s been a pretty typical year for Southwest Ohio — certainly better than last year. While it was slow to warm up and dry out, we’re pleased with the season so far.
Our ground floods very easily. So far, we’ve been lucky with enough rain and enough dry weather to make the crops come up without any flooding issues. Last year was very difficult for us, but this year has been much better.
Bill Bateson – Hancock County
We started some beans May 2 and had a pretty good population. We finished up May 10–12 and ended up replanting almost a third of those — conditions were good, but a little moist and some of those rains caused us to replant.
I no-till all my beans, but we’ve seen an increase in vertical tillage in our area this year to erase some tracks from the fall that seems to have helped with crusting and gave them a better stand than traditional no-till.
Weed pressure so far has been moderate at worst; a fall burn down helped us get control of some chickweed. I haven’t heard a lot about dicamba, there’s some guys like us using it in more selectively for burn down before people have gardens out and plants are up.
Bill Bayliss – Logan County
We had almost the perfect spring. We started the first week of May and ended by May 12th with great stands. Our neighborhood is in an excellent position, I’ve heard people 15-20 miles on either side of me are either too wet or too dry.
Things are probably running 10 days or two weeks ahead here at the end of May. Most guys are finished up or have just a day or two left in our area here in Hardin, Logan, and Champaign County and it’s looking really good.
We used Extend chemicals this year to get control with burndown. There was a lot of discussion about dicamba, a lot of local and state meetings, and most everybody I’ve talked to — along with our operation — went with it in the burndown pre-plant application and are hopeful we don’t need any postemergence. Here at the end of May it looks like that will hold true.
Jeff Magyer – Ashtabula County
We had a good week to get started, and I know the local co-op had a tremendous week with fertilizer. After that, it was hit or miss sneaking in a few acres between spotty showers.
We’re generally too wet being in the lake effect rain area, but we’re used to those conditions. The second week of May was very favorable — we normally don’t get that kind of window. Usually western Ohio is finishing up when we’re just getting rolling, but late in May we have a good start, but the area’s probably not 50% planted yet. u
Amy Davis Warren Co.
Bill Bayliss Logan Co.
Bill Bateson Hancock Co.
Jeff Magyer Ashtabula Co.
A Recipe for Cost Overruns and Project Delays:
STC Research Highlights Nation’s Approach to Funding Locks and Dams
The condition of the nation’s inland waterway system continues to remain a priority for U.S. soybean farmers. Last year, 97.2 million tons of soybeans and grain were transported via the system — connecting farmers with international customers. A high percentage of the nation’s navigable rivers require a system of locks and dams to cost-effectively and efficiently provide the linkage between soybean and grain production regions and export facilities. Many of these locks and dams have been allowed to degrade, and, as a result, they no longer provide confidence that soybean and grain shipments via the inland waterways will be reliably transported. If allowed to continue, international competitiveness of the U.S. soybean and grain farmer will decline.
Over the years, the Soy Transportation Coalition (STC) has routinely conveyed the argument, “How you allocate money is just as important as how much money you allocate.” Improving the nation’s inventory of locks and dams is not solely a function of increased funding. More efficient allocation of funding is also essential.
In an effort to increase awareness of the need to provide funding for locks and dams in a more reliable manner, the STC has released a report, “Predictable Funding for Locks and Dams,” that describes the cost escalations and project delays resulting from the current unpredictable and piecemeal funding approach and identifies potential best practices that, if implemented, will enhance the likelihood of lock and dam construction and rehabilitation efforts being
completed on time and within budget. Doing so will not only save taxpayer dollars, but the accelerated completion of these projects will provide accelerated benefits to agriculture and other industries utilizing the inland waterway system.
“Farmers have a reputation of making the dollar stretch further and doing more with less on their own operations,” says Gerry Hayden, a soybean farmer from Calhoun, Kentucky, and chairman of the Soy Transportation Coalition. “We therefore think it is very appropriate for a farmer organization like the STC to explore how taxpayer dollars can be stretched further when maintaining and improving our locks and dams.”
The report, conducted by Texas A&M University, compared a hypothetical lock and dam project constructed via the current unpredictable, piecemeal funding approach with one potentially constructed with predictable and reliable funding. The research highlighted how a lock and dam project with a five-year construction timeline and a $500 million initial cost estimate would be completed on time and within budget provided predictable and reliable funding from Congress. In contrast, the same project with the same initial cost estimate and construction timeline would ultimately cost $573 million and eight years to complete under the current unpredictable and piecemeal funding approach employed by Congress. The same project with the same price tag can have entirely different outcomes — not because of more appropriated funding but simply due to funding being provided in a more reliable manner.
As the chart (right) highlights, when funding is provided in an unpredictable, piecemeal approach, the amount of funding available for the actual construction effort is eroded from three sources: 1.) Inflation, 2.) Mobilization costs, and 3.) Making incremental purchases vs. bulk purchases. Delays from one funding allocation to another exposes the project to inflationary costs. Because funding is often unpredictable, the construction effort can be subject to interruption until funding is once again available to resume work on the project. The workers, equipment, and materials to construct a lock and dam project are initially mobilized, then demobilized, then remobilized, then demobilized once again. Each time the effort must be remobilized, a cost is incurred. Finally, it is more economical to make bulk purchases of steel, concrete, and all the other materials and inputs necessary to complete such large construction projects. Unfortunately, the unpredictable and piecemeal funding approach currently employed results in such purchases being made in smaller, more expensive increments.
“If I were to design a funding approach that would result in guaranteed cost overruns and construction delays, I would design the system we have in place,” explains Mike Steenhoek, executive director of the Soy Transportation Coalition. “These cost overruns and construction delays of locks and dams we frequently witness should not be regarded as unintended consequences. Rather, they should be regarded as predictable outcomes. We will continue to see resources wasted and benefits of these important projects delayed until we are able to adopt an approach that provides funding in a predictable and reliable manner.”
U.S. House Approves H.R. 8 — Water Resources and Development Act of 2018
The House of Representatives recently approved H.R. 8 — the Water Resources and Development Act (WRDA) of 2018 — by a vote of 408 to 2. The Senate is expected to pass similar legislation later this summer. If Senate passage occurs, a conference committee between House and Senate leaders will be required to reconcile any differences between the two versions of the legislation before a final version is sent to President Trump for his signature.
“We commend House leadership on maintaining the cycle of passing a WRDA bill every two years,” said Steenhoek. “Under Chairman Bill Shuster’s (R-PA) leadership, the House Transportation and Infrastructure Committee has been instrumental in
WRDA bills being passed and enacted into law in 2014, 2016, and now likely in 2018.”
Prior to 2014, the most recent WRDA bill was enacted into law in 2007. When such an amount of time passes, it becomes more and more of a Herculean effort to educate Members of Congress of the consequence of the inland waterway system and why it merits their time and attention. Many Members of Congress do not represent districts immediately adjacent to navigable waterways.
As a result, it requires intention to devote time and energy to consider a WRDA bill. The more time that elapses, the more difficult it becomes to muster this effort. Therefore, maintaining an
every two year cycle is critical to make sure these important issues remain on our nation’s radar screen.
Section 118 of the House-passed version of WRDA calls for examining “the effect of the annual appropriations process on the ability of the Corps of Engineers to efficiently secure and carry out contracts for water resources projects and perform regulatory obligations.”
This is very much consistent with message from the STC’s analysis regarding the need to provide greater predictability and reliability of funding. The WRDA legislation simply directs this issue to be studied, although having this language in the bill is a nice addition and it encourages this important discussion to proceed. u
Performance from Field to Food
Why this farm family is dedicated to high oleic
After 165 years on the family farm just outside of Edgerton, Ohio, the Keppeler family is no stranger to change. Taking calculated risks is part of good business. Jessica and Adam, who run the farm today alongside Adam’s father, have taken several chances to diversify their farm — and it’s paying off.
“We raise hogs and cattle and grow soybeans, wheat and corn. This year, we’re growing almost 100 percent high oleic soybeans,” says Adam. “They’ve been a great program for us to get into. We’ve been able to excel at it with our limited acres as a way to increase our revenue.”
High oleic soybeans produce a high-performing oil that is in high demand. Food companies use high oleic oil in frying and baking because of its favorable fat profile and ability to withstand high temperatures.
Betting on High Oleic
Adam says the switch to growing high oleic was a natural one.
“About six years ago, a friend of mine who’s a seed dealer convinced me to try out what was then a new bean. I kept track of them all season long,” says Adam. “The high oleic varieties had been some of our top-performers, and the premium from the processor didn’t hurt either. Come harvest time, I called him back up to see what my options were for the next year.”
After that first year, the Keppelers increased their high oleic acreage. Again this year, they’re growing high oleic varieties on contract with a local processor. Two nearby elevators accept the premium soybeans at harvest time or later in the season, depending on the contract.
“We feel 100 percent confident in high oleic soybean varieties,” Adam says. “The strong performance we see from them all season long worked well on our operation. And the premium makes it even more profitable for us to grow high oleic.”
From their farm to their food truck
A few years back, the Keppelers started a food trailer called Cornerstone Kitchen. “I love serving people through food,” Jessica says. “Seeing people’s faces when they eat something that they really enjoy is one of my favorite parts.”
Cornerstone Kitchen serves pork and beef raised on the Keppelers’ farm with barbecue sauce from an old family recipe. Jessica prepares customer favorites like fresh-cut onion rings, chips for country nachos and French fries in high oleic soybean oil.
“We use high oleic soybean oil because it’s so versatile,” says Jessica. “I can fry with it, bake with it — even use it as a salad
oil. And it lasts longer than any other fry oil we’ve used in our food trailer.”
Large-scale restaurants and food manufacturers like the oil for the same reasons. They can use it to replace partiallyhydrogenated oil in fryers and in packaged foods like chips and snack cakes.
With Cornerstone Kitchen, the Keppelers pride themselves on serving what they raise — from the pork they produce to the oil they fry in.
“It’s been an amazing opportunity,” Adam says. “We can take a product that we grow right here on our farm and use it in the food industry — whether it’s in our kitchen, in a restaurant down the road, or a food company two states over. It’s a good feeling to know we as American farmers can grow soybeans that meet needs for our end users here at home.”
The Keppelers are seeing strong returns from their calculated bet on high oleic soybeans. Find out how high oleic varieties could work on your farm at soyinnovation.com/calculator. u
Adam and Jessica Keppeler and their children.
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We strip band all of our fertilizer. We’re using soil tests. We’ve reduced our use of commercial fertilizer substantially, and we also use cover crops. About 90 percent of our acres are no-till. It’s amazing the results we’ve seen in soil health, soil fertility, our reduced fuel, our reduced tillage. We found that we could implement these practices effectively and efficiently and that our bottom line will benefit.
– Andy Stickel Wood County, Ohio
Investing Checkoff Dollars
Demystifying the Soybean Aphid, One Gene at a Time
It’s easy to miss the soybean aphid unless you’re really looking — just a single, pepper-sized fleck on the underside of a soybean leaf. But don’t be fooled by the small size.
This invasive insect has been doing large-scale damage across Midwestern farms for almost 20 years now. Farmers and researchers are still trying to understand how best to manage it.
In a quest for answers, entomologist and OSU Associate Professor Andy Michel is “looking under the hood,” so to speak, into the insect’s DNA.
Michel and his colleagues were the first to publish the full 20,000 gene sequence of the soybean aphid last year. It is only the fourth aphid genome sequenced to date and arguably the most important one for Ohio soybean growers.
“Having the genome available makes it easier for us to understand what these genes are and how they’re able to overcome resistance,” said Michel.
He likens the process to creating a reference library. What researchers need to do now is search the “library” for any books — in this case, genes — that might be involved in the aphids’ resistance to insecticides or naturally resistant plants. It won’t be easy, but it’s a huge first step.
“It’s still a lot of work to find that book,” explained Michel. “Just like we have to do library catalogue searches, scientists have to search the genome for a gene of interest. But without that library, finding it would be impossible.”
Once scientists identify a resistancerelated gene, they can use it as a molecular diagnostic tool. For example, the OSU team might go out to a grower’s field to sample the aphids and examine their genetic makeup.
“We could determine how likely it is that the population of soybean aphids is resistant to a chemical even before that
grower sprays,” said Michel. “It would prevent wasted or ineffective sprays.”
The genome can also help scientists combat the insect adaptation directly by developing a way to shut down the related gene with something like a genetically modified soybean variety.
At the OSU Soybean Research Center, Michel is able to collaborate with many different kinds of scientists: plant breeders, geneticists, plant pathologists and more. This goes a long way towards helping him understand the complex interactions in various crop systems. Insect pests like the soybean aphid run in tandem with other important crop traits and diseases.
“Soybeans do not grow in a vacuum. I try to work with as many scientists as I can to look at soybean management as a system,” Michel said. Michel is grateful for the funding and support local growers provide to his work. The soybean aphid genome project, in fact, would not have been possible without the Ohio Soybean Council and soybean checkoff. u
When do i Spray?
• Sample fields every 7-10 days
• Treat when soybean aphids average 250 per plant AND aphid numbers are increasing
• Treating after seed fill may not result in higher yield
• Continue sampling even after insecticide application to reduce aphid flare-ups
For more information on soybean aphid management, scan this QR code or visit this website: soybeanresearchinfo.com
Soybean aphid densities vary from leaflet to leaflet. To estimate aphids per plant, count the number of aphids per leaflet and then add them all up.
Grain Indemnity Fund Still Provides Security for Ohio Farmers
Afarmer is no stranger to risk and uncertainty throughout the growing season; and while having a harvested crop in the bin or at the local elevator is a satisfying feeling, there are times that a payment may still not be on its way. It is not often that grain elevators fail, but when they do the effect on farmers that did business with them can be devastating.
An estimated $8 million was lost by Ohio farmers from 1968 through July 1, 1983 because of grain elevator bankruptcies and failures. To provide security to farmers, the Ohio Grain Indemnity Fund was established with a half cent per bushel assessment collected at licensed elevators through 1985.
While the fund paid out claims for incidents of insolvency throughout the years, record payouts in 2003 and again in 2011 — when commodity prices were near a record high — prompted legislators to take another look and make some up-
dates to the 30-year-old fund. As a result, Governor Kasich signed Senate Bill 66 in 2013 to raise the grain indemnity fund’s cap from $10 million to $15 million. Other changes included making farmers the first priority to be paid with proceeds
from elevator assets and some changes in requirements to ensure financial stability when elevators renew their license.
With the increased cap on the fund, the half cent per bushel assessment was once again imposed by Ohio Department
Grain Indemnity Fund (Continued)
of Agriculture Director Daniels on January 10, 2014, to begin replenishing the fund and ODA’s annual report showed a balance just over $15 million at the end of 2015.
In the event of an elevator failure, claims to the indemnity fund are handled
by ODA’s Grain, Feed and Seed Section being approved or disapproved by the Director with recommendation from the Commodity Advisory Commission. According to ODA, as of January 2016 more than 1400 claims totaling upwards of $15 million have been paid out since the fund’s inception with more than $4 million being recovered from the failed elevators Typically, farmers would be paid out one of two ways; those who have grain stored at the elevator and can prove they maintain the right to ownership are likely to be reimbursed for 100 percent for the
value of their grain in the elevator. Those farmers who have entered into delayed price and basis transactions are eligible for 100% reimbursement on the first $10,000 of their loss and 80 percent of the remainder.
This means it is imperative for farmers to know what their contracts mean and make sure any storage contracts can be validated in the event of insolvency. It’s also important to note that the fund does not pay out on grain stored for more than 365 days.
Producers who need to file a claim or are experiencing unusual delayed payments or insufficient funds issues with a licensed Ohio grain elevator can contact the ODA Grain, Feed & Seed Program at 614-728-6410 or GFS@agri.ohio.gov u
Engaging OSU Students with Future Eats
While you’re busy growing this year’s soybean crop, the Ohio Soybean Council is cultivating the next generation of informed consumers. Future Eats is a campaign targeting students attending The Ohio State University. It aims to educate them on how their food is grown and raised, highlighting Ohio farmer’s commitment to sustainability. The campaign features a fun, interactive blog and easy, budgetconscious recipes to engage young people in our message.
College students may be shopping for just themselves today, but in the not-so-distant future, they’ll be making decisions about where to spend their family’s grocery budget. As they transition into adulthood, it’s important to teach them about how Ohio farmers are committed to sustainability and food safety. With more than 64,000 students, OSU represents a great opportunity to reach these new consumers.
Recipes are a cornerstone of the Future Eats site. These simple, cheap recipes are paired with sustainability facts to get students thinking while they’re eating. Check out this recipe for onebowl brownies! u
One-Bowl Brownies
Total Time: 35 minutes
Servings: 1 pan
Ingredients:
• 2 cups granulated sugar
• 1-3/4 cups all-purpose flour
• 5 large eggs
• 1 teaspoon salt
• 1 cup canola or vegetable oil
• 1 teaspoon vanilla extract
• 1/2 cup unsweetened cocoa powder
• 2 cups semi-sweet chocolate chips to taste
Directions:
1. Heat the oven to 350°F.
2. Mix all ingredients together except chocolate chips. Spread in a greased 9×13 pan and sprinkle chocolate chips on top.
3. Bake for 30 minutes with a check after 20 minutes or until a toothpick is inserted and comes out almost clean.
4. Let cool completely before cutting and serving.
OSC recently sponsored and attended the OSU Ag Communicators of Tomorrow Club’s Farmer Share Day. This event brought students unfamiliar with agriculture to OSU’s Waterman Farm to meet with ag students and other industry stakeholders to talk about sustainability, livestock care, GMOs and more. Interactive games and other educational materials were provided.
