March 13, 2008

 

Monsanto and Cargill offer Vistive soy incentive
 

 

Monsanto Co. and Cargill Inc. are trying to persuade farmers in Iowa and elsewhere to grow soy with fewer trans fatty acids.

 

The two companies began the recruiting effort on Tuesday, as they offer US$0.50 to US$0.60 more a bushel for Monsanto's Vistive soy that is low in linolenic.

 

The Vistive soy has less trans fatty linolenic acid than normal soy, and soy processors need more producers to meet the demand for healthier soy oil.

 

Demand has grown since mega restaurant chains such as McDonald's, KFC and Wendy's have switched to trans fat-free oil. In addition, 20 states have proposed regulations to restrict the use of trans fats high oils.

 

The offer is an extra incentive for crop farmers who are already witnessing soaring soy prices. Soy futures on the Chicago Board of Trade hit a record US$15.86 last week before falling. Analysts say those prices will prompt farmers to plant more soy this year.

 

"This is a great opportunity for producers who are still making planting decisions to get a higher return per acre of soy they are growing," said Eric Keller, specialty oilseeds merchant for Cargill Inc. He added that Cargill soy processing plants in Des Moines, Cedar Rapids and Sioux City will process the Vistive soy this year.

 

Malin Westfall, Vistive marketing manager for Monsanto, said 1.5 million acres of Vistive soy were grown in the US in 2007. Iowa farmers grew the most, he said, with about 3,000 Iowa farmers raising 435,000 acres.

 

Corey Damman, who farms near Melbourne, said he raised 100 acres of Vistive soy on contract last year with Cargill. He earned between US$3,000 to US$3,720 last year for the soy, which included the per bushel bonus for the Vistive soy.

 

Damman said he plans to grow as many Vistive acres in the upcoming season.

 

Meanwhile, Asoyia, a farmer-owned company based in Iowa City, is offering growers a US$1.45-a-bushel premium to grow its low linolenic soybean variety.

 

Brett Maxwell, Asoyia's vice president of operations, said the company expects a 30 percent growth in acreage this year over last year's.