ANOTHER VOICE

When shopping for soybean seed, check quality along with yield
By Jason Bean

Editor’s note: Another Voice is an opinion column that provides perspective on issues that affect agriculture. Opinions expressed are not necessarily those of Today’s Farmer or MFA Incorporated. Submissions should be 700 words. Send submissions or inquiries to
Todaysfarmer@mfa-inc.com.

Over the past few years, I’ve been paying closer attention to what international and domestic buyers are demanding from U.S. soybeans, and what they’re demanding are high-oil-and-protein soybeans. Who are these buyers? Is it our local elevator, big processor or someone else?

The truth is, it’s all three. While the local elevator may be our first, most direct customer, there are many more beyond that. Think of our customers as the end users of our soybeans and it’s easier to see how demand plays a huge role in our success. As a soybean farmer, I know that meeting quality demands affects my bottom line.

Let’s use China—an end user—as an example. China is our largest export customer and Chinese buyers demand high-oil-and-protein soybeans, specifically soybeans with at least 19 percent oil and 35 percent protein. If they don’t get it from us, they’ll get it from our competitors. Chinese buyers are continually telling checkoff representatives about U.S. soybean quality and about their concerns that we won’t meet their demands. What happens if we don’t meet these levels and lose China as a customer?

Consider this. Based on a 3-year average, losing China could result in a price drop for our soybeans of 42 cents per bushel, production could drop by 42 million bushels and the value of our production could drop by $1.45 billion. That should get your attention. It sure got mine when I first heard it. Our soybean checkoff responded by launching efforts to raise the overall average oil and protein content of U.S. soybeans. That’s when the checkoff, through research data, determined that the 19 percent oil and 35 percent protein numbers were our targets. So, how do we reach these levels?

First, it’s important to realize that different regions of the United States have different challenges in reaching the 19/35 goal. The challenges are not due to how we farm; it’s about where we farm. The farther you are from the equator, the harder it is to achieve high levels of oil and protein. For example, soybean farmers like my friends Paul and Vanessa Kummer in North Dakota have more of a challenge than a farmer in Louisiana does in hitting the 19/35 target. It’s the geographical location, but there’s a way around that.

To hit the 19/35 target, we have to choose the best soybean seed varieties for our area. Sounds simple, doesn’t it? That’s because it is. We can’t control the weather, and while technology has given us a huge advance in fighting diseases and pests, it doesn’t tackle protein levels after the seedis in the ground. So what we’re left with is informed seed selection. We need to know which varieties target 19/35. Fortunately checkoff farmer-leaders have invested in tools to help us identify high-yielding varieties that hit that 19/35 target.

The checkoff has developed a software program that  provides information on what our buyers demand, how quality affects price, what seed companies have varieties targeting 19/35 and which processors currently offer premium prices for high-oil-and-protein soybeans. It allows you to compare yield, oil and protein levels and general performance of soybean varieties from university and other test plots. To get the program, e-mail info@unitedsoybean.org, or visit www.worldsbestbeans.com. With this information in hand, you’re better prepared to ask your seed dealer for high-yielding, high-oil-and-protein varieties. That’s not all though—there’s another benefit you could profit from.

Remember those premium pricing programs I mentioned? Processors seek to meet demands of end users, and some are offering premiums for high-oil-and-protein soybeans. AGP, Cargill, CHS, Minnesota Soybean Processors, Owensboro Grain and South Dakota Soybean Processors all have some sort of program in place. MFA’s MorSoy 3991 is approved by AGP.

The soybean checkoff works to provide farmers with more information on premium programs as they become available. Quality directly affects price, and that effect on price boosts our bottom-line income potential.

Now that you know what is demanded, how to take steps to address that demand and what it could mean to your bottom line, remember this: Ask your seed dealer for high-yielding, high-oil-and-protein soybean varieties. We can’t control the weather, but we can help control the prices we get for our soybeans.

Jason Bean is a Missouri director for the United Soybean Board