Iowa Food and Family Project

Most Iowans admit to having little understanding about how their food is produced. But a recent consumer poll found that 85 percent want to know more. That presents an opportunity for Iowa’s farmers. The Iowa Food & Family Project, launched this month with the strong support of the Iowa Soybean Association, seeks to enhance farmer and consumer relations through personal engagement, advocacy and education. In addition to adding its voice to important issues through print and broadcast media, the Iowa Food & Family Project will serve as title sponsor of the Iowa Games and Live Healthy Iowa, reaching more than 100,000 Iowans. Learn more about the origin of your food and the men and women who provide it be logging on today to iowafoodandfamilies.com.

Eggs Lower in Cholesterol

The US Department of Agriculture recently announced that they have determined that eggs are 14% lower in cholesterol and 65% higher in vitamin D than when they last measured eggs for nutrient qualities back in 2002.

Officials with the American Egg Board said that some researchers believe the improvement are the result of feeding hens better diets that are rich in soybean meal, corn, minerals and vitamins. Just another way Iowa’s soybean farmers are improving the diets of Americans and consumers around the world.

Iowa produces more eggs than any other the state in the country and the Iowa Soybean Association salutes Iowa’s poultry producers. We thank them for their use of soybeans and for providing all of us a 70-calorie source of great tasting protein.

Making Progress in Saving the Soil

Water is essential for all dimensions of life and no one knows this better than Iowa’s farmers. The Iowa Department of Natural Resources reports that nearly 24,000 tons of soil are staying put on the land and out of our state’s rivers, lakes and streams thanks to conservation practices installed last year by Iowa farm families and land owners. If that amount of soil was placed in dump trucks, the line would stretch for nearly 8 miles. Iowa’s soybean growers and their association have long been leaders in protecting water quality. That’s why we invest more than $3 million annually in internal and external funding to identify and implement opportunities to improve agriculture stewardship of natural resources. And that’s just for starters. To find out more, visit us online at iasoybeans.com.

$180 Million Opportunity

Back in the 1980s, soybean farmer leaders across the United States were becoming increasingly concerned with the many challenges facing the soybean industry. A hodgepodge of state checkoff programs was not generating sufficient dollars necessary to open markets, increase demand or increase yield while lowering production costs. Part of the challenge was that not all soybean farmers across the country were contributing (farmers in Ohio and Indiana for example) and the flat rate per bushel was thought to be overly focused on production as opposed to increasing farm-gate prices.

Through efforts of the American Soybean Association, the 1990 Farm Bill included provisions for the creation of a national checkoff program. In September 1991, the United Soybean Board (USB) met for the first time to begin overseeing the national checkoff program. Half of the funds collected in each state stay with the state soybean board and the other half is forwarded to the USB for investments on issues of importance across the country and around the world.

Importantly, the rate of the checkoff was set at ½ of one percent of net market value and was the same for every soybean farmer. Through a series of referendum, farmers have strongly supported the continuation of the soybean checkoff since 1991.

However, few of us involved in 1991 envisioned a time when we would produce a crop in excess of 3.3 billion bushels with prices above $12/bushel. In 1991, the US produced a 2.2 billion bushel crop and the average price was $5.50/bushel. As a result of the tremendous growth in the size and value of the soybean crop, annual checkoff collections have grown from $80 million to $180 million/year.

The result is our $180 million opportunity – how do we ensure that all of these farmer dollars are invested wisely?

1) By acknowledging that we still have significant short and long-term challenges, some of which require significant additional investments to address.

2) By making sure that all investment decisions are related to, and driven by, well-thought out strategic plans.

3) By holding all researchers, staff and contractors accountable for results that are measureable and meaningful.

4) By conducting third-party audits and evaluations to ensure the financial integrity of every dollar.

5) By avoiding too many long-term commitments or building too large of an organizational infrastructure as we understand that these prices may not always remain this high. Farmers are also willing to build reserves if investment proposals do not meet their strategic goals and objectives.

Over the years, the soybean checkoff has accomplished much for U.S. soybean farmers. Although we cannot take full credit for the growth in the size and value of the soybean industry over the last 20 years, the soybean checkoff has certainly made a major contribution.

Strong Support for Iowa’s Farmers

In late October, the Des Moines Register released results of the Iowa Poll that showed that Iowans continue to have a very favorable view of Iowa farmers. In fact, 92% of those polled, said they have a mostly or very positive view of farmers in this state. And a majority responded that they believe that food safety has improved in the last generation.

At the same time, the poll also noted that Iowans continue to have concerns about the impact that agriculture may be having on water quality.

I would suggest that Iowa farmers share these concerns and that is why so many of us in agriculture are working to more clearly understand what impacts production agriculture may be having on the environment and then working to implement approaches that will reduce these impacts. To learn more about ISA’s efforts to improve water quality, log on our web site at www.iasoybeans.com

Facing Challenges in the Soybean Industry

In last month’s IOWA SOYBEAN REVIEQ column I focused on the dwindling support American’s have for trade agreements and why soybean farmers have much to lose if this trend is not reversed. The recent failure of the Obama administration to reach an agreement with South Korea is just another example of the political obstacles we face.

Over the last three years, US soybean production has increased by just over 5% while the domestic crush has fallen by 3%. At the same time, domestic soy meal demand has fallen by nearly 11% and domestic soy oil demand has fallen by 15%. In the same period, soybean exports are up 34%, soy meal exports are up 27% and soy oil exports are up 81%.

So what do these numbers tell us about the current and future demand for soybeans? And more importantly, what is the Iowa Soybean Association doing to address these challenges?

First, the domestic soy meal numbers tell us that the US livestock industry is hurting and that DDGs from the ethanol industry are displacing soybean meal. Second, consumer concerns about trans fats have reduced the domestic demand for soybean oil. Third, without exports, the year-end carryover of soybeans would be depressing soybean prices.

These numbers drive many of ISA’s priorities. For example, with a clear understanding that pork and poultry producers are our most important customers, ISA was a founding member of the Coalition to Support Iowa’s Farmers to help Iowa livestock producers do what’s right as they expand their livestock operations. We are also funding pork and poultry exports activities to increase the exports of US meat products.

Our investments in promoting soy biodiesel are driven by the recognition that at least until we can commercialize high oleic soybeans, we will need to reduce the domestic supplies of soybean oil through an increasing biodiesel industry. Longer term, we must continue to work to find additional ways to add value to soybean oil.

In the international arena, ISA has understood that most of the growth in soybean demand is going to take place in markets outside of the US. For example, soybean farmers began investing checkoff dollars in China more than 15 years before China imported their first bushel of US soybeans. Today, they are a 900 million bushel a year customer. Likewise, checkoff dollars from across the country are being invested in efforts to increase demand in more than 70 countries. This year, ISA has partnered with the USDA to take a look at long-term opportunities to export soybeans Sri Lanka. We also continue to work with several other state soybean organizations in promoting US soybeans in countries throughout Asia including Vietnam, Indonesia and the Philippines.

Want to learn more about the investments the ISA board of directors is making here and around the globe? Go to our web site at www.iasoybeans.com

The Sound of Closing Doors

I am writing this column three weeks before the November elections. Like most of you, I have grown tired of the political ads full of charges and countercharges and claims of the grave danger to Iowa and America’s future if someone’s opponent is elected. And it seems that in every election, candidates will argue that “this is the most important election of our generation.” And who knows, perhaps this election is indeed such an event. Whoever gets elected is certainly going to face significant challenges, both here in Iowa and in Washington, DC.

One issue that hasn’t received much attention this election cycle has been America’s support and approach to opening additional markets through trade agreements. The silence on the issue is perhaps an indication that politicians don’t see support for trade agreements as a “winning” issue in their campaign.

In early October, the Wall Street Journal’s banner headline read, “Americans Sour on Trade” and the introductory sentence read, “The American public, already skeptical of free trade, is becoming hostile to it.” The story went on to report the findings of a recent Wall Street Journal/NBC News poll that showed that those saying that free-trade agreements have hurt the US has increased from 32% in 1999 to 53% today. Less than 20% of Americans believe that these agreements have helped the US.

Given these numbers, perhaps it is not surprising that the Obama administration has not moved forward to seek Congressional approval of pending trade agreements with South Korea, Panama or Columbia. We also see virtually no progress on WTO negotiations or in resolving a dispute with Mexico on carrying cargo on US roads under NAFTA.

While admitting that trade agreements must indeed be “fair,” I would suggest that those of us in agriculture should be very concerned by this shift in American views of international trade and the important role that trade agreements have played in opening markets around the globe. Perhaps no industry in the US has gained more from these previous agreements than has American agriculture. And within agriculture, soybeans have more at stake than any of the other major commodities. US farmers export more than 50% of all the soybeans grown in this country and nearly all the future growth will occur overseas. An aggressive approach to seeking additional trade agreements is clearly in the best interest of Iowa’s soybean farmers.

So, even if this election was not the “most important” in our generation, I think one could make a strong case that losing the hearts and minds of Americans on the value of trade agreements might be the most important economic issue we are facing in the soybean industry. Now is not the time for the US to withdraw from the world’s economy and close the door on opportunities to expand our industry.

ISA Goes Mobile

Few industries have embraced technology as much or faster than has American agriculture. From the early days of mechanization and hybrid seeds to today’s use of auto steer tractors and the use of satellites and biotech seeds, farmers have utilized these new tools to produce the safest, most abundant and most affordable food in the history of mankind.

As an organization created by farmers for farmers, the Iowa Soybean Association is constantly challenged to keep up with our farmer members. Recently, ISA announced that its website has “gone mobile.” You can now take information from ISA’s website wherever you go via your smart phone. Included are ISA’s field guides on soybean diseases, aphids and other pests. Simply use your smart phone browser to go to www.iasoybeans.mobi or click on the ISA Mobile button on the ISA website at www.iasoybeans.com

Just another way ISA is working to expand opportunities and deliver results.

Bioheat in the Big Apple

Late this summer, Michael Bloomberg, the mayor of New York City signed into law a requirement that all grades of heating oil sold in the city contain at least 2% biodiesel starting in October 2012. In signing the legislation, Mayor Bloomberg was quoted as saying that this requirement will “reduce pollution, promote the use of alternative fuels, create new green jobs and vastly improve the air quality throughout the city.”

I couldn’t agree with him more. For several years, the soybean checkoff has been partnering with the National Biodiesel Board to promote BioHeat, the brand name that we use to promote the use of low blend biodiesel in the heating oil market. It’s another important market for soybean oil based biodiesel.

To learn more about biodiesel and BioHeat, log on our web site at www.iasoybeans.com

Egg Recall a Black Eye for Agriculture

The recall of nearly 600 million eggs originating from a north Iowa producer causes consumers to question the integrity and honor of our farm families and the continued reliability of safe food.

I understand because I share these heartfelt concerns. Iowans do not tolerate incompetence and those that habitually violate the law, consumer trust and proper food production procedures. Those that do discredit the integrity of Iowa’s 98,000 farm families and tarnish our state’s brand as a respected leader in food and fiber production. Those responsible should be held accountable.

The ISA and many other agriculture groups in Iowa resisted rushing to judgment when news about the egg recall and salmonella illnesses was reported in August. Federal and state food safety inspectors implemented an investigation of the Galt-area egg farms owned by Wright County Egg, part of the DeCoster family’s agribusiness operations. It was important that these audits be conducted absent of social and political grandstanding. Consumers expect and deserve the truth, not contrived indignation and wild speculation.

Investigations now completed by the U.S. Food and Drug Administration find that DeCoster’s operations violated numerous sanitary safeguards linked to the salmonella outbreak that has sickened more than 1,200 people. These include overflowing manure storage facilities, co-mingling of poultry and wildlife, flies and maggots “too numerous to count” in hen houses and flies found on eggs. All are a direct breach of existing food safety regulations and protocols and reveal a disturbingly-high level of incompetence.

Those responsible for this immense breach of public safety will be held accountable and rightly so. Wright County Egg is currently being sued for allegedly causing the salmonella poisoning of a Wisconsin woman and dozens more lawsuits linked to the outbreak are reportedly in the works. It is likely the FDA will prosecute those linked to the illnesses and the prohibition of fresh egg sales from facilities under investigation is dealing a financial blow to the operation. These self-inflicted penalties will take their toll.

While harshly critical of Wright County Egg management, we also denounce those selfishly manipulating this crisis for personal and professional gain. They include out-of-state pro-vegan organizations masquerading as animal welfare proponents and community activist groups seeking to fundamentally alter food production by arguing for a one-size-fits-all approach to how farm families can grow crops and raise livestock.

Ironically, so-called “solutions” offered by these opportunists in response to the egg recall are disingenuous at best and, at worst, dangerous to consumer health.

Outlawing the use of individual housing for hens would increase contact between the animals and their bacteria-laden feces. Trumpeting only free range production in place of conventional egg laying facilities would increase the comingling of livestock and disease-carrying rodents and birds. Rushing to pass still more regulations would further consolidate agriculture while increasing the cost of a dozen eggs at your preferred food vendor.

In light of efforts by some to not let a crisis go to waste, it’s important to note that Salmonella’s presence is not confined to just one size of farm or livestock. It can contaminate any animal- or plant-based food from any kind or size of farm. Recently, lettuce and tomatoes were recalled after testing positive for Salmonella. The last major incident in which eggs and salmonella were linked was two years ago in eggs from a cage-free, organic production system. Interestingly, agenda-driven activist groups, including those now taking to the airwaves – remained silent when these incidences became public.

Also, the conditions found at Wright County Egg are an exception. Hongwei Xin, a specialist in poultry housing at Iowa State University, has visited more than 50 egg farms in Iowa (including ones operated by major producers) and has never seen the combination of conditions described in the FDA reports citing Wright County Egg. He also has never observed mice or wild birds in henhouses. “This is not very typical at all,” he tells Philip Brasher of the Des Moines Register.

Food provided by responsible Iowa farmers to consumers here at home and around the globe is safe, nutritious and affordable. Organizations such as the Iowa Soybean Association are working diligently with farmers, state and federal regulators, elected leaders and food safety experts to keep it so. That’s a commitment from Iowa farmers to you and your family.