September 11, 2020
US farmers venture into high oleic soybeans for higher potential profits
Many US farmers are adding high oleic soybeans to their rotation to earn premiums without any added headaches from managing strict growing requirements, learning a new management method or changing labour seasons or equipment, the United Soybean Board (USB) said.
"This is a great opportunity for farmers to add extra value to their land and crop," said USB farmer-leader Belinda Burrier, who grows high oleic soybeans in Maryland, the United States. "High oleic soybeans innovate and grow current markets while giving the consumer a product that they want and the farmer the premium that they need."
These specialty soybeans currently have select availability across the Midwest and Delmarva Peninsula. For the 2021 growing season, the availability of high oleic soybean contract opportunities has widened, with a multitude of delivery locations available and an average premium of more than US$0.50 per bushel. A recent study indicated that if high oleic growth continues as projected, a 1,000-acre soybean farmer will net between US$34,000 and US$50,000 more from soybean farming as a result of higher prices driven by high oleic demand.
High oleic soybeans have already revolutionised the soy industry, from increased food functionality to industrial uses, with new innovations such as motor oil, tires, shoes and asphalt, according to USB.
By providing a product that meets the demand of biobased alternatives, high oleic soybeans are adding long-term value for all US soybean farmers. The nine billion pounds of annual potential oil demand will require 16 million planted acres of high oleic soybeans by 2027.
In today's economic and market conditions, a modest boost with these specialty soybeans is just the ticket, according to one Indiana farmer.
"Really, being a high oleic grower helps you and helps all of us," said Kevin Wilson, a soybean farmer from Indiana and USB farmer-leader. "Every year, we plant more acres of these soybeans, we see the demand grow. We're shoring up our own stable domestic market, and I'm proud to be a part of it."
Farmers eager to learn where and how they can access high oleic soybean contracts for their farm can visit the USB website for high oleic soybeans or contact their seed representative to ask about high oleic soybeans.
Elevator and processor locations throughout the US offer contracts to growers for either on-farm storage or defined amounts of harvest delivery for high oleic soybean varieties.
"For us, these soybeans have the same weed management programme, fungicide programme and come from the same dealer," said Burrier. "It's not any harder, but we get paid more for them. What more can you ask for?"
- United Soybean Board