Checkoff Investments Are Enhancing Domestic Soybean Demand

Soybean farmers are encouraged by progress in trade resumption with China, but at the same time, they continue to explore demand opportunities domestically. During a recent webinar hosted by Agri-Pulse Communications, United Soybean Board leaders and staff members talked about those opportunities and the effectiveness of Soybean Checkoff dollars. In addition to exports, Soybean Checkoff investments are about creating value for soybean farmers through food, fuel, industrial uses and sustainable production, according to Philip Good, chairman of the USB.

“The farmer committees are working on looking at where do we want to go with investments. Where do we see the greatest return in the next five to 10 years? That's going to be expanded and looked at even a little more deeply when it comes to things like fuel and different things in that realm,” said Good, who farms in Mississippi. “So, I think we've got a lot of opportunity. We need to capture that in the form of return on investment for every farmer.”

Citing specific examples, USB Vice-Chairman Brent Gatton, who farms in Kentucky, said the uses of soy-based products range from fire-suppressants that are free of so-called forever chemicals to common everyday items.

“SoyFoam [for fighting fires] has become extremely big. A lot of the industrial uses that people wouldn't think that soybeans could be a part of; Goodyear tires, Skechers tennis shoes, synthetic turf like SYNLawn,” said Gatton. “Things like that are not a big market mover, but it's another way for us to get into these markets and actually be able to tell our sustainable story of how soybeans do touch every life, every day.”

Soybean growers have benefited from demand created by the development decades ago of biodiesel, but Philip Good points out a huge market potential in the supplying of renewable fuels to rail and waterway shippers.

“I think it's the greatest opportunity yet. I'm excited,” said Good. “I think that we have only scratched the surface. I think the volume usage there when it comes to whether it be the maritime, whether it comes to that, or on the locomotive on the class engines there, we've got a great market.”

Checkoff investments have also resulted in enhancements to soybean traits, such as high-oleic soybeans, which generate benefits at many points on the value chain, said John Jansen, vice president for oil strategy at the United Soybean Board.

“Really, the beauty of high oleic and that high oleic fatty acid is that it provides benefits across food, feed and industrial applications,” said Jansen. “The high oleic program, as initiated by the USB, is generating just under $4 return for farmers on every $1 invested by the checkoff. So, it's been a great product for USB farmers.”