2008 Year in Review

Soybean Association Helps Producers Meet Their Match

ISA Launches Web Site to Connect Growers with Premium Opportunities.

This Valentine’s Day, while others are making personal connections, use the internet to make a business connection. A new tool from the Illinois Soybean Association allows innovative soybean growers and companies looking for specialty soybeans to find each other.

The Illinois Soybean Association (ISA) launched the Web site, Soybean Premiums, to help buyers promote premium programs and growers to identify these opportunities for improved profit.

“Selling differentiated soybeans can bring in extra revenue without having to expand acres, but identifying the right program for each operation can be a challenge,” said David Hartke, ISA chairman. “The purpose of this site is to give growers a go-to place to find premiums in their areas, as well as highlight the specialty soybean marketplace.”

The site allows buyers to post premium soybean programs, gives growers a detailed listing of programs, and provides links to additional resources about soybean production.

“The market for specialty soybeans is not as complete and well-known as it could be,” said Pete Goldsmith, executive director of the National Soybean Research Laboratory in Urbana, Ill. “This Web site can help producers understand what this market segment needs, how contracts work, and how you buy and sell these soybeans.”

Current premiums listed range from 50 cents to $1.45 per bushel for growers who can meet a program’s specific guidelines, which are posted by companies throughout Illinois.

Goldsmith said premium programs can differ greatly in contract characteristics, making it difficult for buyers to communicate to producers. He likened the ISA site to the old marketplace, but with a new twist.

“Producers can see the many premiums out there and they can research and choose one. The challenge is that you are talking about several contract aspects, not just price. It’s a more complicated message so it is even more necessary to have a place to display this information, you can’t just ‘shout it out.’”

For example, Clarkson Grain Company in Cerro Gordo, Ill., is looking to contract 8,000 acres of one specific variety for the 2008 season.

“Our job is to supply people with the specific soybeans they want,” said Lynn Clarkson, president, Clarkson Grain Company. “We go beyond the U.S. Standards for Grain. We are looking for things the general market doesn’t provide, which can make it a challenge to find.”

Clarkson Grain selects specific varieties to consistently fit the clients’ needs, such as nutrition, flavor, taste, smell and color. The processed products find homes in a variety of products, including snack bars, cosmetics, baby food, soy milk and animal feeds.

For years, companies have been looking to contract growers to grow soybeans for seed or conventional (non-GMO) soybeans. Enhanced soybeans, including those chosen for high protein, high oil or low-linolenic qualities, are an emerging specialty market, according to Goldsmith.

Processors and manufacturers often report difficulty filling specific requests due to low response from soybean growers. Whether due to a lack of supplies or lack of interest, Clarkson said companies like his want to promote the generous premiums they offer to the right audience.

“A tool like Soybean Premiums and they plan to post future programs on the site.

In addition to connecting buyers with producers, Goldsmith said the Web site highlights new uses and applications for soybeans, and gives Illinois a place to market itself.

“It is an exciting opportunity for Illinois soybean growers,” he said. “We have the potential to get the message to foreign buyers that we can grow specialty soybeans, that we have the infrastructure, technology and managerial skills. It demonstrates that Illinois is a place where needs can be met.”

ISA is the statewide organization for Illinois soybean farmers. The farmers on its board administer soybean checkoff funds to support research, promotion and educational programs designed to increase demand for Illinois soybeans and administer legislative and membership programs.

by  Editor, theCity1.com
February 18, 2008