November 6, 2020

New specialty soybean contracts available to US mid-Atlantic farmers

US mid-Atlantic farmers can lock in new premiums by selecting high oleic soybeans for the 2021 growing season, the United Soybean Board said on November 5.

Many Delmarva-area farmers have already decided to take advantage of this opportunity due to the minor adjustments needed from growing commodity soybeans and expanded convenient delivery location options accepting Plenish high oleic soybeans from Corteva.

Maryland-based Perdue AgriBusiness has increased per bushel premiums for 2021 in hopes of encouraging more of the region's farmers to grow high oleic soybeans to meet growing demand for refined high oleic oils. Mid-Atlantic soybean farmers have already received more than US$10 million in premiums since the programme began.

Eddie Mercer Agri-Services, Inc. in Frederick, Maryland, has joined the growing list of delivery locations offering attractive premiums between US$0.50 and US$0.65 per bushel to farmers for both harvest delivery and on-farm storage — with an additional US$0.10 per bushel premium for farmers that contract 100% in high oleic varieties. This central location opens the door to many farmers in the region.

"This is a great opportunity for farmers to add extra value to their land and crop," said United Soybean Board farmer-leader Belinda Burrier. "It's really a no-brainer when you look at how similar it is to grow high oleic varieties if you've ever grown commodity beans."

In today's economic and market conditions, a modest boost with these specialty soybeans can be a huge help to farmers. A recent study indicated 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. Perdue AgriBusiness is one of the biggest demand drivers for high oleic soybeans in the region.

"There is growing demand in the food industry for high oleic soybeans due to their performance and health benefits," said Perry Aulie, senior vice president of value add for Perdue AgriBusiness. "We are thrilled to partner with Mercer, and we are also seeking 175,000 acres of high oleic soybeans this year. We project a need for 350,000 acres for spring of 2022."

"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," said Burrier.

- United Soybean Board