Ohio Soybean Review Spring 2008

A Publication of the OHIO Soybean Association

Ohio Soybean Association 918 Proprietors Road, Suite A Worthington, OH 43085

Ohio’s Economic Stimulus Package: NON-PROFIT U.S. Postage PAID Des Moines, IA Permit No. 589

OSA Gives Endorsement spring 2008

spring 2008

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Volume 5, Number 4

The Tradition Continues … Tune in to listen to Dale Minyo, Ohio’s most recognized farm broadcaster.

www.ohioagnet.com

A PUBLIcation of the ohio Soybean Association

Features A Focus on Production Research: Checkoff Investments are Creating Better Beans

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This insert provides a look into current production research projects supported by the Ohio Soybean Council and the soybean checkoff, and what these projects are doing to improve soybean farmers’ bottom line. This is the second in a series of Ohio Soybean Review inserts highlighting soybean checkoff investment areas.

Fuel Quality Standards are Key to Assuring Top Biodiesel Performance

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The use of biodiesel fuel in commercial trucks, fleets and farm vehicles is on the rise, for many good reasons. For starters, biodiesel is a quality fuel that performs just like petroleum diesel and can be used in any diesel engine without modifications. As a result, many vehicle operators find it’s easy to make the switch to biodiesel.

Ohio Processors Work to Meet Consumer Demand for Low-Linolenic Soybeans

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Earlier this year, Cargill Sidney accepted its first delivery of low-linolenic soybeans, one of the most talked about specialty soybean varieties grown in Ohio. But they are not the only processor working to meet the demand for low-linolenic soybean oil.

Making Strides in the Fight Against Soybean Diseases

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Through new soybean genetic technology, details behind plant disease resistance are being uncovered, and the results, thus far, could pave a new road for the breeding industry. For the past four years, Ohio State University biochemist Terry Graham has been leading efforts to improve disease resistance in soybeans through technology known as gene silencing.

About the cover In March, Ohio Soybean Association farmer-leaders met with Gov. Ted Strickland to discuss his jobs package, Building Ohio Jobs, and soon after the OSA board of trustees voted to endorse this initiative. Now, bipartisan efforts have resulted in a new economic stimulus package totaling $1.57 billion, with investments in emerging industries such as biobased products and renewable energy, as well as local infrastructure.

The Ohio Soybean Association endorses 25x’25, a renewable energy initiative.

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OUTLOOK Ohio Soybean Association 918 Proprietors Road, Suite A Worthington, OH 43085 614-476-3100 614-476-9576 fax 1-888-SoyOhio (769-6446)

Working Together to Build the Future

by Guest Columnist Dan Corcoran Ohio Soybean Council Chairman and Pike County Soybean Farmer

M

y auto-steer guidance system for our planting tractor takes signals from several satellites miles above our heads, beams them to an antenna and control box, and then uses reference and correction signals to operate the hydraulic system and steer my tractor in the field.

This system works because all of the components work together to produce a beneficial result. Each part of the system has a specific ability and purpose of its own, but, when communicating, they can work to achieve even more. I use this as an example of what has driven many of the successes of the soybean industry.

First of all, I want to thank the Ohio Soybean Council (OSC) board of volunteers, who diligently oversee the appropriations of soybean checkoff dollars, and the Ohio Soybean Association (OSA) for their continued cooperation and efforts in working to educate policymakers in Ohio and in Washington, D.C. The combined efforts from both soybean boards in Ohio have produced some very big results for Ohio soybean farmers. Let’s take a look at a few of these successes.

Soy Biodiesel

Many years ago, OSC began to support soy biodiesel research in an effort to create more demand for Ohio soybeans. This effort has produced a high-quality fuel product for the public, and OSC continues to support soy biodiesel research and education projects.

OSA took the role of bringing soy biodiesel to the attention of policymakers, and thanks to OSA’s work, in 2006, Gov. Taft signed House Bill 245 into law, elevating biofuels as a priority in Ohio. In 2007, Gov. Strickland’s biennium state budget allocated $4.5 million to alterna4

SOYBEAN REVIEW

tive fuel programs, the most attention ever received in the state budget.

Ohio Soy2020

The purpose of Ohio Soy 2020 is to envision what the soybean industry could look like in the year 2020, and plan for success. To do this, OSC brought together over 70 representatives from all sectors of the Ohio soybean industry, including producers, processors, seed companies, education and government, to the first strategic planning forum.

Because the legislative landscape in the years to come will also play a major role in shaping the future of the soybean industry, OSA has been involved with Ohio Soy 2020 every step of the way. OSA representatives have participated in the strategic planning and as part of the steering committee.

Trans Fats

In 2007, legislation, House Bill 393, to ban trans fats in the state of Ohio was introduced.

OSA is opposed to this legislation, and is currently working with lawmakers to prevent the bill from being passed. While OSA is not opposed to reducing trans fats, it feels that it should be through a market-driven approach rather than a legislative mandate.

Meanwhile, OSC has introduced the Soy Oil Ohio campaign, which seeks to educate both farmers and consumers about low-linolenic soybeans and other specialty varieties the soybean industry is developing to meet consumer demand for healthier soybean oil.

Much like the components on my autosteer guidance system, when all parts are working together, the results are great, and I will move through the field efficiently and with confidence. I feel that the efforts of both volunteer boards of the OSA and the OSC will move the industry forward for the benefit of the Ohio soybean farmer.

President Mark Watkins, Hardin County Chairman Jeff Sollars, Fayette County Vice President Membership Jeff Wuebker, Darke County Secretary Dave Dotterer, Wayne County Treasurer Bret Davis, Delaware County Trustees Bill Agle, Clark County Jerry Bambauer, Auglaize County John Buck, Marion County Amy Davis, Warren County Mike Heffelfinger, Van Wert County Kevin Homan, Henry County Rob Joslin, Shelby County Ed Lamalie, Sandusky County Chad McIlvaine, Ross County Lyle McKanna, Putnam County Clark Myers, Mahoning County Jeff Roehm, Highland County Dale Shawk, Crawford County Bruce Simmons, Medina County Bob Slicker, Stark County Joe Steiner, Warren County AMERICAN SOYBEAN ASSOCIATION DIRECTORS Rob Joslin, Shelby County Joe Steiner, Warren County Mark Watkins, Hardin County Industry Affiliates Kathy Alvarez, Bunge NA Jim Beuerlein, The Ohio State University Andrea Guckes, Cargill Inc. Don Ralph, Ohio Farm Bureau Federation

Staff Credits John Lumpe....Publisher Ann Clinton Millsap....Editor Jamie Butts....Editorial Manager Shelby J. Ostrander....Senior Creative Advisor Gary Usovsky....Senior Creative Advisor Jennifer Coleman....Staff Writer Rob Stewart....Publications Production Assistant David Larson....Sales Director The Ohio Soybean Review is published six times a year by the Ohio Soybean Association in partnership with the Iowa Soybean Association.

For address corrections contact the Ohio Soybean Review 4554 NW 114th Street Urbandale, Iowa 50322-5410 Phone: (515) 251-8640 E-mail: sheath@iasoybeans.com For advertising information in the Ohio Soybean Review, please contact Larson Enterprises, (515) 440-2810, or larson6@mchsi.com.

To contact the editor e-mail: aclinton@iasoybeans.com.

Comments and statewide news articles should be sent to the above address. Advertising space reservations must be made by the first day of the month preceding publication. In consideration of the acceptance of the 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.

2008

Commodity Classic Highlights

by Jamie Butts

The delegate session covered ASA’s policies on a variety of important soybean issues, such as the 2008 Farm Bill, biotechnology, sustainable agriculture, soy biodiesel and free trade agreements.

ASA President John Hoffman presents Dr. Anne Dorrance with the ASA Special Meritorious Award.

(L-R): Frank Ross, vice president of North American operations for Pioneer Hi-Bred International Inc.; Jeff and Beth Roehm, 2008 ASA/ DuPont Young Leader Program participants from Ohio; and John Hoffman, ASA president.

www.regfuel.com/ag

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he 2008 Commodity Classic was held at the end of February in Nashville, Tenn. This annual convention, coordinated by the American Soybean Association (ASA), National Corn Growers Association and the National Association of Wheat Growers, brings together farmers from across the nation. The following is a brief recap of some of the activities that took place involving Ohio Soybean Association (OSA) board members and others from Ohio.

REG biodiesel

You Have the Power

As you prepare for the planting season, be sure to choose a fuel that supports your production.

RENEWABLE FUEL

from renewable resources, like soybean oil

REDUCED

emissions compared to standard diesel

ENDORSEMENT

by many major diesel engine manufacturers

BIODIESEL

increases demand for soybeans

REG meets the strictest biodiesel quality guidelines and is a BQ-9000 Accredited Producer and BQ-9000 Certified Marketer. To find out more about REG biodiesel and its manufacturer, Renewable Energy Group (REG), visit www.regfuel.com/ag.

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SOYBEAN REVIEW

ASA Policy Session

Thirteen farmerleaders from Ohio participated in ASA’s voting delegate session that sets forth ASA’s policy issues for the coming year. The Ohio delegates were joined by other farmerleaders from the 25 soybean producing states bringing the total delegate count to 134.

Dorrance Receives ASA Special Meritorious Award

Dr. Anne Dorrance, Ohio State University soybean researcher and associate professor of plant pathology, was nominated by OSA and selected to receive the ASA Special Meritorious Award.

Dorrance was nominated for the award to recognize the years of dedicated service and research expertise she has given to Ohio’s soybean industry.

She is passionate about her soybean research and Extension education programs, and she has been nationally and internationally recognized as a leader in soybean pathology.

Ohio DuPont Young Leaders Complete First Phase of Training

Jeff and Beth Roehm of Hillsboro, Ohio, were recognized during ASA’s awards banquet with a leadership recognition award for completing the first phase in the 2008 ASA/DuPont Young Leader Program, which included participation in the Commodity Classic.

The first phase challenged participants with a four-day educational leadership seminar that focused on leadership and media training and provided an opportunity for participants to meet and learn from other young leaders from 19 states and Canada.

The ASA/DuPont Young Leader Program targets soybean farmers who are innovative, assertive, “young in leadership” and looking to make their mark in agriculture.

Jeff and Beth will next travel to Pioneer headquarters in Johnston, Iowa, for Phase II of the program to complete their training.

Photos Courtesy of The American Soybean Association.

Ohio Soybean Association Endorses Building Ohio Jobs

Efforts Lead to Bipartisan Economic Stimulus Package

After Ohio Soybean Association farmer-leaders met with Gov. Ted Strickland, the board of trustees voted to endorse his Building Ohio Jobs initiative, which helped to create a new bipartisan package.

by Jamie Butts

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t the beginning of the year in his State of the State address, Gov. Strickland announced a $1.7 billion jobs package, Building Ohio Jobs.

In March, after Ohio Soybean Association (OSA) farmer-leaders met with the governor, the board of trustees voted to endorse Building Ohio Jobs, which will benefit many economic facets of Ohio including agriculture. Areas of interest to OSA in the governor’s package include investments in biobased products, advanced energy and farmland preservation. The governor emphasized to OSA board members during this meeting that it is his goal to continue his discussions with legislative leaders in order to gain their support and move forward in a bipartisan way.

These bipartisan efforts have resulted in a new economic stimulus package totaling $1.57 billion. This new plan replaces Building Ohio Jobs and was recently announced by Gov. Strickland, Ohio Senate President Bill Harris and Ohio

House Speaker Jon Husted. A press release issued by the governor’s office says this new package aims to create new jobs while laying the foundation for future economic prosperity.

The original Building Ohio Jobs proposal was going to be placed on the November ballot if it met certain criteria, but with the new bipartisan package and, with the exception of the Clean Ohio Program, it will not need to go to the ballot.

“The Ohio Soybean Association appreciates the work the governor has put into his jobs package and applauds his efforts in working with the legislature to create a bipartisan measure,” says OSA President Mark Watkins. “OSA’s endorsement of Building Ohio Jobs helped to create the bi-partisan package and emphasized that agriculture is an important economic sector to consider when making these investments. The fact that these monies will be available sooner rather than later is a positive benefit.”

In the new economic stimulus package, investments totaling $300 million will be made in new and emerging industries and include biobased products,

biomedical and advanced and renewable energy. Infrastructure investments will total just over $1 billion and will focus on logistics and distribution, local infrastructure, Clean Ohio conservation, Clean Ohio revitalization and a historic preservation tax credit.

“The investments in advanced energy and biobased products will help to strengthen the investments the soybean industry and Ohio agriculture have already made in these areas,” Watkins says. “The logistics and transportation investments will also be of great benefit in improving the way the millions of dollars of Ohio agriculture products are transported.”

In an effort to keep more college-educated Ohioans in the state, the bipartisan package includes a higher education workforce initiative that will make investments of $250 million in linking college students with internships, cooperative education programs and jobs while they are earning their degrees.

The proposal’s investments of $1.57 billion, which represents approximately $700 million in less debt than the original proposal, will be funded through a combination of bond sales, existing revenue and other sources.

Gov. Strickland and OSA farmerleaders discuss investments in biobased products, advanced energy and farmland preservation.

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Investing Checkoff Dollars

Sowing Sustainability:

Photos courtesy of © 2008 Ford Motor Company, Wieck Media Services Inc. and © John deere.

Ford Pioneers Green Seating Alternative, Licenses Soy Seating to John Deere

Soy vs. Petroleum-Based Poly Foam Components

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armers could soon bring in the harvest using equipment made with their own crops, thanks to a collaboration between Ford Motor Company and John Deere. The two companies have agreed that John Deere will further develop and manufacture Ford’s soy-based flexible foam for seating materials in tractors, riding mowers and other equipment.

Ford first introduced soy-based polyol to the auto industry in the seat backs and seat cushions of the 2008 Ford Mustang.

The 2008 Ford F-150, Expedition and Lincoln Navigator now also feature this eco-friendly technology, with the next application coming in the 2009 Ford Escape. Meanwhile, Deere has used soybased products for body panels on some farm equipment. Ford will work with John Deere and its seat supplier, Sears Manufacturing Company, to bring this greener alternative to traditional seat foam to fields and even backyards nationwide.

“As all of industry faces daunting sustainability challenges, Ford is pioneering renewable solutions and forging strategic partnerships to extend our capabilities and our ability to innovate,” says Gerhardt Schmidt, vice president of Ford Research

and Advanced Engineering. “We are pleased to collaborate with John Deere to continue the development of soy-based foam and research other technologies to benefit both our industries.”

Ford’s soy-based foam will be developed for use in the seat backs, seat cushions, arm rests and head rests of John Deere equipment, which is used in agriculture, forestry, construction, and lawn and turf care. Sears Manufacturing will also work to incorporate the technology into Class V-VII medium and heavy trucks.

“John Deere’s agreement with Ford builds on our shared core values of quality and innovation and our commitment to deliver outstanding products for our customers,” says Klaus Hoehn, vice president of advanced technology and engineering at John Deere. “Working together will advance our ability to develop far-reaching solutions for a more sustainable future.”

Soy-based foam is just one of the technologies Ford Global Technologies LLC is making available through licensing to companies, such as John Deere, for applications outside Ford.

Ford’s plastics research team has formulated the chemistry to replace a

staggering 40 percent of the standard petroleum-based polyol used in seating materials with a soy-derived material.

This breakthrough will make a significant impact on the environment while reducing dependency on imported petroleum.

According to the National Institute of Standards and Technology, soybased products have only one-quarter of the level of total environmental impact of petroleum-based products.

Most automakers today use 100 percent petroleum-based polyol foam. Each vehicle contains an average of 30 pounds of petroleum-based foam in its seat backs, seat cushions, armrests, instrument panels and headliners.

“As we continue to migrate this green technology across many vehicle platforms, we’re improving our environmental footprint by conserving limited resources and reducing carbon dioxide emissions,” says Debbie Mielewski, technical leader of Ford plastics research.

Ford is working closely with the United Soybean Board to bring soy foam to the automotive market. The company is using 2.2 million pounds of soy foam in the 2008 Mustang alone. Just based on that application, this green alternative is on track to deliver a carbon dioxide reduction of 605,000 pounds annually.

With more than 3 billion bushels of soy harvested in the U.S. each year, at a 20 percent soy foam inclusion rate, Ford could potentially use up to 844,000 bushels of soy throughout its product lineup annually.

Article provided by the United Soybean Board/Soybean Checkoff.

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SOYBEAN REVIEW

Investing Checkoff Dollars

Mexico Gobbles Up Turkey Meat All Year Long:

Checkoff Dollars Build Demand and Protect Export Access

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SOYBEAN REVIEW

photo courtesy of the united soybean board/soybean checkoff.

As consumption of poultry products increase in Mexico, resulting in more sales of U.S. poultry and eggs, there will be a need for more soybeans. Simply put, more exports of U.S. poultry mean more valueadded exports of soybeans.

by Jennifer Geck USAPEEC Manager for Allied Industry Relations

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ears ago consumers in Mexico only ate turkey meat during the holidays. No one knew how to prepare everyday meals with the meat. Supermarkets stocked a limited variety of turkey products.

Nutritional benefits remained largely hidden. Restaurant chefs rarely featured turkey on their menus. And local meat processors remained unaware of using turkey as raw ingredients in their further processing. Now, thanks to the efforts by the USA Poultry & Egg Export Council (USAPEEC) through the financial support of the soybean checkoff, turkey consumption has risen, and the U.S. is the No. 1 supplier of poultry to Mexico.

Mexico remains by far the largest market for U.S. turkey and the third largest market for U.S. chicken and egg products. As consumption of poultry products increase in Mexico, resulting in more sales of U.S. poultry and eggs, there will be a need for more soybeans. Simply put, more exports of U.S. poultry mean more value-added exports of soybeans.

As the largest consumer of soybean meal, the U.S. poultry and egg industry is an important one, accounting for 53 percent of all of the soybean meal produced. The industry uses more than

As a means of building demand for turkey in Mexico, USAPEEC conducted a series of educational seminars, which have helped maintain the image of U.S. turkey and chicken as safe, high-quality products.

the annual soybean production of the state of Illinois, or the equivalent of about 565 million bushels. Approximately 100 million bushes of soybeans are exported through poultry alone – 10 percent come from turkey exports. In fact, turkey consumes more soybean meal than beef.

As a means of building demand for turkey in Mexico, USAPEEC conducted a series of educational seminars with organizations such as the Mexican Meat Council (COMECARNE), Mexican Association of Federally Inspected Establishments (ANETIF), Mexican Restaurants Association (AMR), National Chamber of Restaurants (CANIRAC), and the Mexican Department of Agriculture (SAGARPA/SENASICA). The seminars have helped to maintain the image of U.S. turkey and chicken meat as being safe and of a high quality due to the strict food safety standards enforced.

Ironically, as U.S. poultry exports to Mexico have increased, numerous trade barriers have surfaced, specifically with shipments being held up at the U.S.Mexico border for no apparent reason.

As a means of addressing such a huge problem, USAPEEC, through soybean checkoff funding, conducted a series of seminars with SAGARPA/ SENASICA throughout Mexico to train border inspectors on the importance of keeping poultry under refrigeration during all points of inspection, on local import regulations and on the variety of U.S. poultry, namely high-value products, and egg products entering Mexico.

While significant progress was made as a result of the seminars, USAPEEC will continue to implement additional seminars in the coming year to further protect market access.

While Mexico continues to show solid growth for U.S. turkey exports, USAPEEC, through the U n i t e d Soybean Board (USB), conducted a followup study to the “Value of U.S. Poultry and Meat Exports to U.S. Soybean Producers” study. This follow-up study identified several new markets for U.S. turkey exports, specifically China and Central America.

In the coming year, USAPEEC, through USB funding, will work with the largest food retailer in Central America to develop a marketing campaign to promote turkey and value-added turkey products. The pilot program will include a select number of high-end supermarkets in Guatemala and Costa Rica. As part of the agreement, the retailer will have turkey products year round, rather than only during the Christmas season. This is a great success for U.S. turkey since, until recently, customers could only access whole turkeys during November through December and some turkey ham products during the rest of the year.

USAPEEC appreciates the generous support of the U.S. soybean industry to further develop and protect markets for U.S. turkey. U.S. turkey exports represent a solid opportunity to increase soybean meal indirect exports and utilization.

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Production Research

A Focus on Production Research Checkoff Investments are Creating Better Beans

Production Research

Ohio Soybean Council Production Research Projects The following 2008 production research projects are funded by the Ohio soybean checkoff.

ers for both food and feed purposes, combining superior compositional traits with higher yield and resistance to disease.

n Development of New Soybean Varieties – Dr. Steve St. Martin, researcher with the Ohio Agricultural Research and Development Center (OARDC), is working to develop and eventually commercialize soybean germplasm suitable for Ohio soybean farm-

n Disease Resistance – Dr. Anne Dorrance, researcher with the OARDC, is conducting a variety of research projects, with funding from the Ohio Soybean Council (OSC) and the soybean checkoff, to improve the disease resistances of soybean varieties.

n Asian Soybean Rust and Soybean Aphid Research – OSC and the soybean checkoff are funding research projects, also led by Dorrance, that will provide important information about fungicide treatments to control Asian soybean rust and soybean aphids, either of which could cause a significant loss of crop.

Photo courtesy of Ken Chamberlain, CommTech/OARDC Photo courtesy of Ken Chamberlain, CommTech/OARDC

n Ohio remains only one of two soybean-producing states east of the Mississippi River free from soybean rust. Careful analyses of soybean leaves are just a small part of OARDC’s comprehensive soybean rust research program.

n Ohio State University researchers use marker technology through the Ohio Agriculture Research and Development Center’s Molecular and Cellular Imaging Center (OARDC) to identify genes in a soybean variety that exhibit specific characteristics, such as disease resistance. Because of marker technology, the number of genetic crosses made in the OARDC soybeanbreeding program has increased nearly 50 percent in just two years.

Photo courtesy of Ken Chamberlain, CommTech/OARDC

n Soybeans are not only produced in Ohio for grain, but they are also grown for a variety of other uses, such as food and industrial products. Each year, OARDC soybean breeders analyze new varieties that could be suitable for the market.

n Ohio is ranked sixth in the nation in soybean production, with an annual value of over $1 billion. New varieties produced by OARDC and introduced to the market add additional value to the state’s agricultural economy.

Production Research

n Gene Silencing – Dr. Terrance Graham, researcher with The Ohio State University, is working with funding from the OSC and the soybean checkoff to apply gene silencing technology to identify and evaluate specific genes responsible for certain pathogen resistances.

n North Central Soybean Research Program (NCSRP) – OSC and the soybean checkoff support NCSRP in an effort to improve the efficiency and coordination of production research projects among the twelve member states because disease and insect problems do not stop at state boundaries. Founded in 1993, NCSRP is a

tool to facilitate cooperative research, and it is currently investing checkoff dollars into research projects that seek to address soybean aphids, soybean rust, biotechnology to enhance disease resistance, and the breeding and management strategies for iron chlorosis.

Photo courtesy of Ken Chamberlain, CommTech/OARDC

n Soybean diseases are the limiting factor in crop performance. Vigilant scouting is just one aspect of OARDC’s soybean research program. From soybean rust to phytophthora root rot to sudden death syndrome, soybean researchers ensure that the varieties produced in the state are diseaseresistant and high yielding.

n The OARDC soybean breeding program has released 13 soybean varieties over the past five years.

Farmers have adopted tofu varieties, disease-resistant conventional varieties, soybeans with low-linolenic acid and those with healthy, high-protein traits.

Photo courtesy of Ken Chamberlain, CommTech/OARDC

Production Research

I

checkoff n 2007, the Ohio Soybean Council (OSC) and the soybean tural Agricul Ohio (OSU) ity’s Univers State continued its work with Ohio tion produc n soybea in C) (OARD Center Research and Development research. maThrough the support of OSC, OARDC researchers focused on three g. breedin and es strategi ment manage disease jor areas: soybean rust development, other specialOSC provided financial support to train Extension educators and ed to monicontinu also chers Resear Ohio. in ists in the detection of soybean rust l plots. In sentine state’s the through ment tor the potential of soybean rust develop system plot l sentine the tly, Curren . system the 2007, five new sites were added to n soybea 32 and plots l sentine ture Agricul of is made up of 10 U.S. Department checkoff-supported sites. assessment of In addition to monitoring, soybean plots were planted for the but the outfields, Ohio d reache yet

by Anne Dorrance, not has resistance to soybean rust. Rust OARDC/OSU Extension come of the soybean rust work has led to new information on other diseases, such Plant Pathologist as frogeye. hthora root Disease management strategies for sudden death syndrome, phytop ce to resistan cally, Specifi 2007. during Ohio rot and foliar diseases were evaluated at several locations across syndeath sudden to ce resistan e evaluat to ted Phytophthora sojae was evaluated, but work was also conduc spot. drome, as well as the impact of foliar fungicides on frogeye leaf Such efforts included: Breeding efforts rounded out soybean production efforts in 2007. for oil, biodiesel and industrial products. traits y • The development and advancement of soybeans with specialt ly with resistance to phytophthora, but primari – • The development of varieties specifically adapted to Ohio also resistance to insects, crop pests and soybean rust. traits to benefit Ohio producers. Marker• The development of large populations for genetic mapping of key expedite the process of incorporating can ities assisted selection is the means by which companies and univers Innovation Center into OARDCs ducts BioPro specific traits into multiple populations. Investments by Ohio markers to exploit during the key ing identify in Molecular and Cellular Imaging Center will assist researchers

breeding process. n growers’ production needs, while Together, OSU, OARDC and OSC are responding to current soybea preparing for future trends.

2007 Sentinel Plot System Report The Ohio Soybean Council and soybean checkoff provide support for the sentinel plot program, which serves as an early warning system for Ohio soybean farmers. n During 2007, there were three positive finds of soybean rust spores in Ohio in rainfall spore traps, as well as one positive “rustlike” spore in a Syngenta trap. Extensive sampling following these finds indicated that no infections occurred. Nationwide, soybean rust arrived earlier in Louisiana and Texas, but hot and dry weather prevented movement north until September.

n Frogeye leaf spot was reported in mid June in the western part of Ohio, and numerous counties shortly thereafter.

n Aphids reached economically damaging levels in northeast Ohio in late August.

Investing Checkoff Dollars

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Fuel Quality Standards are Key to Assuring Top Biodiesel Performance

he use of biodiesel fuel in commercial trucks, fleets and farm vehicles is on the rise, for many good reasons. For starters, biodiesel is a quality fuel that performs just like petroleum diesel and can be used in any diesel engine without modifications.

As a result, many vehicle operators find it’s easy to make the switch to biodiesel.

Additionally, studies show that biodiesel offers advantages such as fewer emissions and increased engine lubricity. Yet perhaps one of the most common reasons so many consumers choose to fill up with biodiesel is because it is environmentally friendly and made from renewable resources like soybeans, grown right here in Ohio.

While the availability and use of biodiesel fuels have increased over the past few years, so has the industry’s commitment to establishing and maintaining the highest quality standards for their product. For instance, in 2000, the National Biodiesel Board established the BQ-9000 certification program for biodiesel producers and marketers.

BQ-9000 is a voluntary fuel quality control program for producers and marketers to ensure that biodiesel is produced according to the nationally accepted standard, ASTM D 6751. The program covers procedures for fuel storage, handling and management, all focused on maintaining fuel quality throughout the distribution system. The program is managed by the National Biodiesel Accreditation Commission, an independent organization. All biodiesel producers and marketers are encouraged to earn certification under the BQ-9000 program.

As the biodiesel industry expands and more producers come on line, it is crucial that only the highest quality biodiesel reaches the marketplace. In addition to encouraging BQ-9000 certification, the Ohio Soybean Council (OSC) and the soybean checkoff have instituted a voluntary quality testing program for

The Accredited Producer certification is for companies that produce biodiesel fuel to the ASTM D 6751 standard. The program ensures a production company is using a system for monitoring the quality of their biodiesel including sampling, testing, storage, retained samples and shipping.

The Certified Marketer certification is for distribution companies that sell biodiesel and biodiesel blends.

This is an important designation because proper handling of biodiesel is as critical to fuel quality as proper production.

biodiesel producers in Ohio. OSC has partnered with the Ohio Department of Agriculture to conduct the quality tests, and several rounds of testing have already been completed.

“Consumers demand, and deserve, excellent performance from the biodiesel they purchase,” says Robert Boggs, Ohio agriculture director. “Maintaining the highest standards for quality is essential – and the Ohio Soybean Council’s Quality Testing Program will help assure Ohio consumers can have increased confidence in the reliability of the fuel they choose.”

In 2007, the National Biodiesel Accreditation Commission announced that six more companies achieved BQ9000 accredited status. Nationwide, there are currently six BQ-9000 certified biodiesel marketers and 17 accredited biodiesel producers, which account

for 40 percent of the biodiesel production capacity in the US. Ohio currently has the capacity to produce 60 million gallons of biodiesel each year. The fuel is available from 150 distributors, and consumers can fill-up at more than 50 retail locations across the state. Peter Cremer North America, a biodiesel producer located in Cincinnati, Ohio, was the first producer in the U.S. to achieve BQ-9000 certification.

“Acquiring your biodiesel fuel from a BQ-9000 certified producer or marketer provides additional assurance that the fuel is, in fact, biodiesel that meets the ASTM specifications and is good, quality fuel,” says Tom Fontana, OSC director of new use development.

For more information about OSC’s soy biodiesel initiatives and BQ9000 quality standards, visit www.soybiodiesel.org. spring 2008

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Investing Checkoff Dollars

Ohio Processors Work to Meet Consumer Demand for Low-Linolenic Soybeans

Earlier this year, Cargill Sidney accepted its first delivery of low-linolenic soybeans, one of the most talked about specialty varieties being grown in Ohio.

by Jennifer Coleman

E

arlier this year, Cargill Sidney accepted its first delivery of low-linolenic soybeans, one of the most talked about specialty soybean varieties grown in Ohio.

But they are not the only processor working to meet the demand for lowlinolenic soybean oil. Bunge North America and Mercer-Landmark have each developed programs that tackle the unique challenges associated with this variety.

Ohio was the second largest producer of low-linolenic soybeans last year, a variety that contains only about 3 percent linolenic acid compared to 8 percent in commodity soybeans. This lower linolenic acid content eliminates the need for hydrogenation, the process that creates trans fats, therefore helping to meet

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SOYBEAN REVIEW

growing consumer demand for healthier soybean oil.

“The low-linolenic oil is something that is going to stick around, and I think there will be more generations of change in the future, like low saturated fat oil that will also be low-linolenic,” says Mike Fry, Mercer-Landmark CEO. “They’ll keep adding more characteristics that will provide better-and-better quality food-grade oil.”

Many food companies and restaurants, such as the KFC restaurant chain, have already made the switch to low-linolenic soybean oil in an effort to improve the nutrition in their food products.

“The low-linolenic oil allows us to continue our mission of providing healthier oils for our food customers,” says Andrea Flowers-Guckes of Cargill Merchant. “With Cargill Sidney’s large food-service business, we want to continue to use soybean oil in our formulas rather than increasing the use of other

oil solutions. Ohio farmers can help us do that by continuing to grow the lowlinolenic acreage in the state.”

Some of the challenges that come with any specialty variety are storage, transportation and processing. To maintain the integrity of the low-linolenic soybeans, they must be kept separated from commodity beans.

“The farmer must maintain the purity of the crop through planting, harvesting, storage and delivery,” says Dave Jenkins of Bunge North America. “All equipment must be clean to prevent commingling with commodity beans.”

Because separation during storage is an integrity concern, the amount of storage capacity and timing of deliveries from farmers can be a delicate balance.

“Since we have a limited amount of storage at our own site, once we start scheduling deliveries in January, we will have to work with growers to spread them out,” Flowers-Guckes says. “It requires a lot of communication to make sure we are scheduling producers to haul the soybeans in months that they need and want.”

With the premiums processors have been paying for low-linolenic soybeans, the response from Ohio farmers has, overall, been positive. According to information from Bunge North America, Cargill, and Mercer-Landmark, Ohio farmers have been very eager to grow low-linolenic soybeans.

“As a whole, we are very pleased with the response to this variety,” says Scott Boulis, Mercer-Landmark facility manager. “We found yields very comparable to commodity soybeans, and with very few exceptions, most farmers who grew

Photo courtesy of Michael Jones.

low-linolenic acres last year have signed up to grow them again this year.”

Competition with other oils is another concern. Soybean oil accounts for almost 80 percent of all edible oils in the United States, and it is important for soybean farmers to meet the demand for healthier oil so they can keep that market share. If demand is not met, consumers could start to fill that need with other types, such as palm oil.

“By participating in our low-linolenic soybean program, Ohio farmers can help preserve and build a vital market for North American soybeans versus globally produced alternative oils,” says Dave Jenkins of Bunge North America.

The market for low-linolenic soybean oil is relatively new, and Ohio processors have each had to learn to balance demand, grower premiums and the logistical issues associated with a specialty variety. While the food oil industry is a competitive market, Ohio processors believe that their low-linolenic programs will be successful.

“Developments in our industry occur very rapidly, and we have to strategically respond to them if we want to remain competitive, Boulis says. “But I think the low-linolenic market will mature, be competitive and settle in to be a great market for our growers.”

And for many Ohio soybean farmers, the premiums and chance to grow a soybean that will produce healthier oil are great incentives to start planting lowlinolenic acres.

“We grew some traditional Round-Up Ready soybeans on our farm in 2007, but two-thirds of our soybean crop was lowlinolenic soybeans,” says Heath Conklin, Union County soybean farmer. “The yields of the low-linolenic were within a bushel of the traditional soybeans. I encourage other farmers to consider growing low-linolenic soybeans and to look at other varieties coming out because the soybean industry needs to stay ahead of the marketplace and remain competitive with other oils in the food industry.”

An oil press at a Mercer-Landmark facility crushes soybean meal to separate the oil, which is then filtered and refined.

Snapshot: Low-linolenic Processors in Ohio Bunge

Bunge’s first low-linolenic production season in Ohio was in 2005. It’s current program allows growers to sign up for either harvest delivery or for farm-stored buyer’s call, and farmers can deliver to either the Marion or Bellevue Bunge locations.

2008 Low-linolenic Premiums: 60 cents per bushel for buyer’s call delivery, and 55 cents per bushel for harvest delivery.

contract for low-linolenic soybeans, they specify if they want harvest or buyer’s call delivery. Those who sign up for harvest delivery can deliver their soybeans to Mercer-Landmark locations in Convoy, Ohio City, St. Henry or Rockford. Buyer’s call deliveries are made to the Rockford location only.

2008 Low-linolenic Premiums: 60 cents per bushel for buyer’s call delivery, and 50 cents per bushel for harvest delivery.

Cargill

In early 2008, Cargill Sidney accepted its first delivery of low-linolenic soybeans.

Cargill has a buyer’s call program, so farmers must be able to store their soybeans until they are scheduled for delivery. Scheduled deliveries begin in January and run through September, and are made to the Cargill Sidney location. Harvest deliveries are available at several of Cargill’s commercial elevator partners.

2008 Low-linolenic Premium: 60 cents per bushel.

Mercer-Landmark

Mercer-Landmark accepted its first delivery of low-linolenic soybeans during the 2007 harvest. When growers

Learn more about low-linolenic programs and other premium growing opportunities in your area through Soybean Rewards!

The Soybean Rewards Program was developed by the Ohio Soybean Council and the soybean checkoff to identify and build awareness of existing incentive programs to grow, market and sell soybeans for a premium.

There is no cost to participate!

Visit www.soybeanrewards.org today!

spring 2008

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Investing Checkoff Dollars

Checkoff Capitalizes on Advantages of Containerized Shipping Empty Containers are Full of Opportunity for U.S. Soybean Farmers

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oybean exports are a major driver of U.S. soybean farmer profitability. Because of this, the United Soybean Board (USB) and soybean checkoff are continually working to grow soybean exports by finding ways for soybean farmers to become better suppliers to their largest customers abroad. Shipping U.S. soybeans using containerized shipments is one such innovation.

Containerized shipping is the process of shipping, via containers, soybean products that can be sealed and loaded onto ships, planes or trains.

Many containers are currently arriving in the United States with consumer products and returning to Asia empty.

Because of this, U.S. soybean farmers are able to offer Asian soybean or soybean meal importers lower shipping costs by shipping beans and meal in containers that would otherwise go back empty.

“The checkoff recognized there was an opportunity to increase soybean farmers’ bottom lines with these empty containers that were going back to China,” says Bill Coppess, USB board member and Ohio soybean farmer. “Why not fill them up with U.S. soybeans?

Soybean exports reached record levels in 2007, but we can’t stop there. Finding new ways to provide services to our international customers is a big part of what the checkoff does.”

Shipping soybeans via containers offers several practical advantages. One advantage is that importers who cannot fulfill demand for large shipments of soybeans now are able to purchase customizable amounts of soybeans.

Containerized shipments offer a quicker turnaround for buyers, usually three to four weeks compared with larger shipments’ turnaround time of three to four months. Containerized shipments generally arrive in better condition and with less foreign matter because of less handling during transit.

Containerized shipments also offer advantages on the ground. After being unloaded from a ship, containers can be easily loaded onto a truck or train and transported to a crushing facility.

Once unloaded at the crushing facility, containers can be easily cleaned and returned to the port to be loaded and shipped again.

“Foreign soybean buyers have plenty of options to consider when making purchasing decisions,” Coppess says. “The United States is currently the top country taking advantage of this opportunity for shipping bulk quality soybeans. By using containerized shipments to reduce the cost of getting our soybeans to them, the checkoff is effectively better positioning the United States as a superior supplier and partner.”

Promoting Ohio Soybeans to Taiwan

Taiwan is one of the most important markets for bulk containerized shipments. In 2006, only 32.7 percent of Taiwan’s annual soybean requirement, or 779,735 metric tons, was imported by container. For the first eight months of 2007, this percentage increased to 71.85 percent, representing 1,158,678 metric tons.

The Ohio Soybean Council and soybean checkoff recognize the potential of this market and have partnered with the United States Soybean Export Council to promote bulk containerized shipping opportunities for Ohio soybeans, which will help to increase Ohio soybean farmers’ bottom line.

photos and portions of this article courtesy of the united soybean board/soybean checkoff.

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SOYBEAN REVIEW

Investing Checkoff Dollars

Making Strides in the Fight Against Soybean Diseases

Soybean cotyledons treated with Agrobacterium rhizogenes. The resulting development of hairy roots enables Ohio State University soybean researchers to study their interaction with various disease pathogens like Phytophthora. Results, so far, could chart new territories for the breeding industry in disease resistance.

by Candace Pollock The Ohio State University

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hrough new soybean genetic technology, details behind plant disease resistance are being uncovered, and the results, thus far, could pave a new road for the breeding industry.

For the past four years, Ohio State University biochemist Terry Graham has been leading efforts to improve disease resistance in soybeans through technology known as gene silencing. By temporarily knocking out the expression of any specific gene, researchers are able to determine the effects of that “silencing” on any soybean trait of interest – in this case, disease resistance.

“If a gene is important to a trait, silencing of the gene should have significant effects on the expression of that trait,” Graham says. “In this project, we are silencing various defense genes potentially critical to soybean disease resistance to Phytophthora to determine which are most important to specific forms of resistance.”

Graham, a researcher with the Ohio Agricultural Research and Development Center, has been studying gene silencing on eight different defense genes in 20 different soybean lines. Each line, in turn, carrying different genes for either racespecific resistance (Rps genes) or partial

Breakthroughs in soybean gene silencing technology have unlocked the mechanisms of race-specific (Rps) genes in soybean plants, as well as the function of a gene now believed to control all disease resistance.

resistance to Phytophthora. He and his colleagues have uncovered results that could boost the strength of phytophthora resistance in future soybean plants.

One discovery is in the way each Rps gene disables the phytophthora pathogen in the soybean plant, killing the disease in a localized area.

“That’s what makes Rps genes so effective – their ability to stop the pathogen exactly where infected tissues die,” Graham says. What researchers found was that different Rps genes trigger different cell death programs, meaning the pathogen is killed differently with different Rps genes.

“All race-specific genes give rise to cell death through a very localized reaction, like a lesion. It’s kind of like a selfsacrifice reaction,” Graham says. “It was always thought that the cell death program was the same for each Rps gene, and now we know that is not the case.”

For genetic breeders, the discovery may aid in choosing new combinations of Rps genes that can now be stacked in the same plant, rather than breeding soybean lines with separate Rps genes.

“Stacking genes with different modes of action may strengthen the effectiveness of resistance,” Graham says. “Because it better contains the pathogen and doesn’t allow it to escape from that localized area and colonize in a different part of the plant.”

In a separate discovery, Graham and his colleagues found a gene, known as PR-2, that is the key to all known disease resistance in soybeans. Knock out that gene and you knock out disease resistance.

“We knew that PR-2 existed, but this is the first molecular genetic proof that this is a master gene and functions in elicitor release in disease resistance,” Graham says. “This gene sets in motion all of the processes necessary for the plant to exhibit disease resistance.”

The next step for researchers is to boost the genetic expression of PR-2 in a soybean plant with the aim of developing stronger innate immunity to any soybean disease. The result could mean stronger soybean resistance regardless of the Rps or partial resistance gene present.

The research is being funded by Ohio Soybean Council checkoff dollars, and it paves the way for lines with more durable resistance to phytophthora, a disease that causes an estimated $60 million in losses to Ohio farmers each year.

Other university soybean researchers involved in the project include senior research scientist Madge Graham, breeder Steve St. Marin, research associate Michelle Sinden and research assistant Ruth Huge. spring 2008

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Investing Checkoff Dollars

Soybean Variety Pipeline:

Photo courtesy of Bob elbert.

Monsanto Hosts Grower Education Meeting

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by Jennifer Coleman

hanks to investments in production research by various sectors of the soybean industry, including the Ohio Soybean Council (OSC) and the soybean checkoff, there are many new soybean varieties coming down the pipeline that will have higher yields, increased disease resistances and traits specifically formulated for use in food and industrial applications.

It is very important that Ohio soybean farmers are aware of the new varieties that will be coming onto the market over the next ten years, so they can build an effective business plan.

It is because of this need to stay informed that Monsanto decided to hold a grower education meeting for Ohio farmers. The meeting, which took place in Toledo, gave growers a unique opportunity to actually interact and ask questions of a team of plant breeders who are managing the world’s largest germplasm pool and developing Monsanto’s upcoming varieties of both corn and soybeans.

“This was a great opportunity for Ohio farmers to hear from the researchers themselves,” says John Lumpe, OSC executive director. “Putting the grower in contact with the researchers gives 22

SOYBEAN REVIEW

both groups a new perspective and the chance to learn from each other.”

Dr. Ted Crosbie, vice president of global plant breeding of the Monsanto agricultural sector, led the variety pipeline presentation. Crosbie is responsible for seven crops worldwide and is a member of the Monsanto advisory committee and the technology leadership team.

During the variety pipeline presentation, Crosbie and his team of researchers discussed future dicamba-tolerant and intrinsic yield soybeans, as well as broadacre quality traits like Vistive™ low-linolenic. They also presented information about SmartStax™, the industry’s first ever eight-gene stacked combination in corn.

In addition to the discussion of new varieties with the plant breeders, Monsanto brought in Mark Gold, managing partner of Top Third Ag Marketing, to discuss risk management. Top Third Ag Marketing is a full service commodity broker dedicated to helping farmers manage risk. Gold spoke with growers about the current market and how they can be more profitable in marketing their products.

“Our basic marketing plan can help reduce the stress and risk you face everyday,” Gold says. “We don’t

speculate. We don’t predict prices. We manage risk.”

The combination of information about new technologies and business planning gave growers a unique opportunity to speak to expert breeders and financial planners about the future of their own operations.

“This meeting was a great opportunity for Monsanto to give back to the producers,” says Keith Buckingham, Monsanto account manager. “The growers gained some valuable insight into both sides of this industry, from the plant breeding perspective to the economic perspective, which will help them plan for the future.”

During the variety pipeline presentation, Crosbie and his team of researchers discussed future dicamba-tolerant and intrinsic yield soybeans, as well as broadacre quality traits like Vistive™ low-linolenic.

Investing Checkoff Dollars

New Holland

Now Supports Use of 100 Percent Biodiesel

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ew Holland, a world leader in agricultural, utility and construction equipment, has announced it will support the use of 100 percent biodiesel (B100) in all equipment with New Holland-manufactured diesel engines, including electronic injection engines with common rail technology. The Ohio Soybean Council (OSC) and the soybean checkoff have long supported the use of biodiesel, and the two organizations applaud New Holland’s announcement.

Biodiesel, most commonly derived from soybeans, is one of the fastest growing alternative fuels in the world.

It is usually blended with petroleum diesel to create a blended fuel such as B20 (20 percent biodiesel and 80 percent petroleum diesel). New Holland’s support of a 100 percent blend of biodiesel is a leap forward in its commitment to renewable energy.

“We are committed to providing equipment that is compliant with biodiesel use and providing top-rate biodiesel support for our customers,” says Paul Trella, New Holland director of product marketing for under-100 HP tractors. “As the use of biodiesel continues to gain greater acceptance and the infrastructure for providing a quality product to consumers, New Holland is ready.”

Trella stressed it is essential to use high-quality biodiesel produced to ASTM D 6751 standards from a reputable supplier. It is up to the consumer to insist that the supply meets standards.

With the use of approved fuels, it is also essential that biodiesel be used in strict compliance with proper handling, storage and maintenance requirements to maintain the integrity of the fuel.

New Holland has conducted extensive testing and development within the company, but has also collaborated with Penn State University to put biodiesel to the test under real-life conditions. Penn State’s College of Agriculture is operating new, unmodified New Holland tractors on B100 biodiesel on their 1,500-acre research farm to find out what diesel equipment owners can expect when they use B100. After nearly two years of use, the tractors have performed with no adverse effects in performance or maintenance.

Overall, nearly 80 percent of New Holland-branded products with diesel

engines are now available to operate on B100 biodiesel. Details of the models that can run on B100, as well as New Holland’s requirements and recommendations to do so safely, are available from New Holland dealers or at www.newholland.com/na/ biodiesel. New Holland has also asked other suppliers of diesel engines used in New Holland-branded products to test and approve higher levels of biodiesel.

“It’s really exciting to see a company support biodiesel in this way,” says Tom Fontana, OSC director of new use development. “This shows their commitment to the future of energy and to agriculture as a whole.”

*Portions of this article provided by New Holland Agriculture. spring 2008

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