December 28, 2004

 

 

US Soybean Farmers Face Rust And Other Issues In 2005

 

The threat of soybean rust has taken center stage within the U.S. soybean industry, but several other issues will also share the spotlight in 2005.

 

American Soybean Association (ASA) President Neal Bredehoft spoke recently to delegates at the Minnesota Soybean Growers Association annual meeting regarding the top items the ASA will deal with in 2005.

 

"The big news is the biodiesel legislation," said Bredehoft. "We did it."

 

The passage of the Foreign Sales Corporation/Extraterritorial Income Tax or Federal JOBS bill legislation helps make biodiesel more cost competitive with regular diesel fuel. The federal biodiesel tax incentive amounts to a penny per percentage point of biodiesel blended with petroleum diesel from 2005 to 2007.

 

Bredehoft said future goals include obtaining passage of the Renewable Fuels Standard. The Renewable Fuels Standard was written into the energy bill, and Bredehoft is hopeful the standard will be passed.

 

"We're going to be working very hard on that," said Bredehoft. "It depends on Congress - if they want to take up the Energy Bill again and go forward with it, we feel pretty confident there will be some type of Renewable Fuels Standard within that bill."

 

Soybean growers will also lobby for the passage of the CCC Bioenergy Program as well as the extension of the biodiesel tax incentive. Bredehoft was confident the extension for the biodiesel tax incentive will eventually be passed.

 

"It was well written legislation and we've got a little bit of time, but we still want to get that extension passed whenever possible," said Bredehoft.

 

International marketing remains a priority issue, especially if the United States is going to maintain its status as the top global soybean exporter. The U.S. currently controls 44 percent of the global soybean market, said Bredehoft.

 

Soybean meal sales to Mexico and China increased in 2004, and the United States also hopes to provide "aqua feed" to China in the near future.

 

ASA intends to focus much of its attention on soybean rust in 2005. The ASA will hold 2005 Rust Education Seminars throughout the nation, including a session in Dubuque, Iowa on Jan 10, and another in Sioux Falls, S.D. on Jan. 14.

 

The work continues for obtaining fungicide registrations and working with companies and various federal agencies to get sufficient products available to farmers.

 

"Unfortunately, in this country we have no data on soybean rust," said Bredehoft. "We're looking at a different climate, different winds. We've got a lot of learning to do over the next year."

 

The Omnibus Ag Appropriations FY05 bill contains just $1 million for rust research - $800,000 to Iowa State University and $208,000 to the University of Illinois for researching soybean rust. Because of the limited funds, ASA is working very closely with researchers and the United Soybean Board to decide on a future direction.

 

"What type of research do we need? When do we need it?" said Bredehoft. "We're putting that plan together right now, so we'll have that available to take to Washington in January. It's going to take a tremendous amount of research dollars to speed up the process of controlling rust."

 

The ASA has been working closely with the ag industry over the last two and a half years, said Bredehoft, evaluating the products available to control soybean rust.

 

"Where we've been able to help some is to go to the Environmental Protection Agency and get these Section 18 Emergency Registrations for these products," said Bredehoft.

 

Bredehoft and ASA board members are concerned about the lack of a U.S. umbrella organization to deal with all aspects of soybean rust.

 

"We have said that we want all of the soybean rust research and education all consolidated and located under one umbrella," said Bredehoft. "We're working with different agencies, working with different groups and trying to get this under one umbrella so that when a producer has a question they can go to a certain website and go from there."

 

Mississippi River navigation is another major concern for the soybean industry. About 75 percent of soybean exports move through the Port of New Orleans, and with the lock and dam system out of date, shipments from this port could be jeopardized.

 

Bredehoft reported that the U.S. Corps of Engineers is applying for seven new locks and five lock extensions. Sen. Kit Bond (R-Missouri) is championing this bipartisan effort, said Bredehoft.

 

"This is an ongoing struggle," said Bredehoft, adding that environmental documentation has hindered the reconstruction process. "You spend so many dollars for the update on environmental factors, so many dollars for the ecology and the ecological system along the river. I think we're getting closer on this, and I believe we will get some authorization for this project."

 

The transfat acid labeling issue continues to be a major concern for the soybean industry. Soybean oil has long been associated with a healthy diet, and the ASA wants to keep it that way.

 

Soybean oil's linolenic fatty acids reduce the shelf life of the oil, especially when exposed to the high heat of a fryer, but food manufacturers and restaurants want soybean oil because it's cheap and readily available.

 

In order to keep that high linolenic fatty acid from breaking down rapidly during frying and quickly becoming rancid, the oil industry partially hydrogenates soybean oil.

 

The partial hydrogenation process includes bubbling up hydrogen through refined soybean oil. Hydrogenation makes soybean oil turn solid at room temperature and pushes back rancidity and oxidation.

 

Partial hydrogenation also creates transfats, and some people and organizations think eating transfats is just as bad as eating saturated fats.

 

In 2006, the Food and Drug Administration will require food companies to begin listing the amount of transfats in foods.

 

In its natural refined liquid state, soybean oil contains no transfats - so that soybean oil in the bottle at home is still a great and healthy choice with its current fatty acid composition.

 

For food manufacturers, soybean oil is partially hydrogenated and therefore contains transfats when it's used for frying. Soybean oil also contains transfats when its been solidified for use in baked goods, pies, cookies, crackers and many other foods.

 

Partially hydrogenated soybean oil, such as margarine, has to be used for these baked products in order to create the structure or functionality the food's need.

 

Approximately 10 percent of soybean oil - two or three billion pounds - currently needs partial hydrogenation and therefore contains transfats.

 

When the FDA begins requiring transfats labeling in 2006, many people within the soybean industry fear that soybean oil will look like the "bad guy," and consumers will shy away from the naturally healthy product.

 

Soybean producers don't want to lose their current domestic oil market.

 

In cooperation with ASA, the United Soybean Board has taken a lead in developing soybean lines that contain lower levels of linolenic acid and higher levels of oleic acid. The new combination of fatty acids does not become rancid or break down as quickly as conventional soybean oil.

 

Studies have shown that the new soybean fatty acid composition does not require partial hydrogenation for good frying characteristics. But because the product is a liquid at room temperature, the new soybean lines would still require partial hydrogenation for many baking uses.

 

In some cases, manufacturers could either blend a brick hard totally hydrogenated soybean oil or another kind of saturated oil - either of which contains no transfats - with a liquid polyunsaturated or monounsaturated oil to create products that do not have transfats.

 

The ASA will continue its work for the development of soybean varieties that do not require hydrogenation. Members will also begin a campaign to educate policy makers on the benefits of soybean oil's fatty acid profile. Soybean organizations will also help fund research on the scientific advantages and clinical trial documentation of stearic-rich foods.

 

Despite the potential challenges facing soybean production in 2005, Bredehoft encourages soybean growers to remain hopeful for the future.

 

"We've always got challenges in the industry - whether it be locks and dams or whether it be rust," said Bredehoft. "I think with all of us working together, we can get some positive results as we move forward."