March 2, 2004

American Soybean Farmers To Discuss Soybean Rust Threat

The hot topic in the annual meeting of American soybean growers is expected to be the threat of the soybean rust disease from South America.

Soaring U.S. soybean prices and dwindling domestic stocks have made importing cheaper supplies from South America more attractive for U.S. soybean processors. But soybean rust is prevalent in Brazil, the world's second-largest soybean exporter after the United States, and to a lesser extent in Argentina.

The American Soybean Association, which is holding its annual convention in Las Vegas this week with the National Corn Growers Association, has asked the U.S. Agriculture Department to temporarily ban soy imports from countries with the Asian rust fungus.

Soybean rust fungus is thought to be spread by spores. Heat treatment during processing of soybeans kills spores, USDA's Animal and Plant Health Inspection Service has said.

"From what we heard from processors, they're very hesitant to import the whole soybean because they don't want to be the one that brings in the soybean rust," said Corwin Fee, the soy group's executive secretary.

Bill Hawks, the U.S. Agriculture Department undersecretary, on Tuesday will give an update on soybean rust developments for the estimated 4,000 farmers at the Commodity Classic meeting.

Fee said a soybean rust outbreak would wreak havoc in the Midwest, potentially reducing soy production by more than 40 percent in some areas. The fungus in Brazil has cost farmers there more than $1.3 billion.

Last week, a USDA study concluded that the destructive fungus would eventually spread to the United States, but imports of soymeal and soybeans did not pose a significant threat. The USDA is expected to issue new soy-import regulations soon to try to slow the introduction of the windborne disease.

Dwain Ford, chairman of the American Soybean Association, said he is concerned about the potential for contamination during various transfer and loading stages because the rust spores can remain viable for some 45 days. The farm group wants the USDA to require a heat treatment of soymeal imports to destroy any rust spores and to require a fungicide treatment of soybean seed from rust-infected countries.