The Weekly Leader Letter is a publication of the American Soybean Association. Visit ASA at SoyGrowers.com.

The American Soybean Association is "your advocate" in Washington, and is powered by the grassroots support of 22,000 members and 25 state affiliates. 


This ASA Weekly Leader Letter Is Brought to You by BASF.
 

Headlines For Thursday, March 12, 2009

Senator Pryor, Secretary Vilsack Address ASA Board
Record Crowd At ASA's Congressional Soyfoods Luncheon
Deadline Tomorrow To Sign Up For 2009 SOY Challenge
WISHH Hosts Washington Seminar On Protein Needs In Developing Countries
Ohio Soybean Council Foundation Sponsors Awards At Science Days
Indiana Soybean Alliance Supports Road Testing Of Soy Biodiesel In Alaska
CFTC Creating New Subcommittee On Convergence In Ag Commodity Markets

WASHINGTON UPDATE

ASA Issues Call To Action In Support Of Senate Letter On Indirect Land Use
ASA Meets With Senate Transportation Committee To Give Input On Rail Issues
Senate Moves On Railroad Antitrust Enforcement Act
EPA Proposes Greenhouse Gas Reporting Rule

INTERNATIONAL MARKETING

ASA-IM Partnership Bolsters Tempe Sales In Indonesia
ASA-IM Korea Uses Positive Feedback To Promote U.S. Hi-pro DHSBM
Chinese Poultry Industry Team Visit To U.S. Leads To U.S Exports
Romanian Demand For U.S. Soybeans Grows

 

This week on the Soy Radio Newsline listen to comments from ASA member Jim Andrew, who chairs a biofuels working group that is part of the EPA's Farm, Ranch and Rural Communities Federal Advisory Committee. Andrew explains why ASA is against the inclusion of the indirect land use formula in the new Renewable Fuel Standard. And, Agriculture Secretary Tom Vilsack when he addressed ASA's Board of Directors on March 10, 2009. Also, Vilsack addresses questions from ASA Board members.
These reports may be heard on SoyGrowers.com.

AT-A-
GLANCE

CBOT Futures 03/11/09

FAS Worldwide Weekly Sales Report as of 03/05/09
(1000 Metric Tons | Million Bushels or Pounds)

 

Settle

Net Change

This Week

Year Ago

% Change

SoyBeans

(09Mar) 875.0

-140

23,270.2

8549

20,595.1

7567

+129

SoyMeal

(09Mar) 281.3

+0.5

3,152.7

6,936

3,416.5

7,516

-7.7

SoyOil

(09Mar) 29.64

-1.08

2185

481

5430

1,195

-598

 
Senator Pryor, Secretary Vilsack Address ASA Board The American Soybean Association (ASA) held its spring Board of Directors meetings this week in Washington, DC., with Executive and Finance committee meetings on Sunday, Public Affairs, Trade Policy & International Affairs, Membership & Corporate Relations and Investment

(L to R) ASA President Johnny Dodson, Arkansas Senator Mark Pryor and ASA Board member Ted Glaub. (ASA Photo by Bob Callanan)
committee meetings on Monday, and a full Board session and policy briefing on Tuesday. Senator Mark Pryor (D-AR) was the guest speaker at the ASA Board lunch on Tuesday. ASA Board member Ted Glaub from Jonesboro, Ark., introduced Senator Pryor, who is from Fayetteville, Ark. Pryor spoke about protecting the interests of rural America, ensuring that appropriations for new energy sources are fair to all areas of the country, and about the cooperative environment in which he believes the Senate is currently working. On Tuesday afternoon, U.S Department of Agriculture (USDA) Secretary Tom Vilsack addressed

the ASA Board. Vilsack, a former governor of Iowa, was introduced by ASA Chairman John Hoffman from Waterloo, Iowa. Vilsack spoke about a variety of challenges USDA is working to address. Listen to the Secretary's comments. Media on hand for the Secretary's comments and interviews with ASA leaders were Beth Gaines-Riffel, Grass & Grain Magazine, Stewart Doan, Agri-Pulse, Mary Berger, Washington Trade Daily, Chris Clayton, DTN, Chuck Abbott, Reuters News Service and Mike Hergert, Red River Farm Network. Today, ASA's World Initiative for Soy in Human Health (WISHH) program is conducting workshops and breakout sessions. See more photos.

Agriculture Secretary Tom Vilsack addresses the ASA Board of Directors on Tuesday
afternoon. Seated at the head table are (L to R) ASA CEO Stephen Censky, ASA Chairman
John Hoffman and ASA First Vice President Rob Joslin (ASA Photos by Bob Callanan)

 
Record Crowd At ASA's Congressional Soyfoods Luncheon   On Wednesday, March 11, about 500 people participated in the American Soybean Association's (ASA) Seventh Annual Congressional Soyfoods Lunch on Capitol Hill. For more than an hour, a steady stream of hungry ASA directors, state farmer-leaders, legislators, congressional staff and Executive Branch agency representatives flowed in two lines filling bowls with Cuban Black Soybean Soup and plates with Crisp Edamame and Vegetable Salad, Vegetarian Beef Bul Gogi (Korean BBQ), Coconut Curry Chicken, Alfredo Primavera and SOYJOY whole soy and real fruit bars. The refreshment bar featured Apply Soy Chai Latte and Soy-tisfying Almond-Chocolate Cappuccino. ASA Vice President Joe Steiner from Mason, Ohio, visited with Congresswomen Jean Schmidt (R-OH), while House Agriculture Committee Chairman Collin Peterson (D-MN) talked with grower-leaders waiting in line. Media participation included Jonathan Harsch and Stewart Doan, Agri-Pulse, Chris Clayton, DTN, Sally Schuff, Feedstuffs Magazine, Chuck Abbott, Reuters News Service and Lynn Ketelson, Linder Farm Network. ASA thanks the following partners for their sponsorship: Archer Daniels Midland Company, Monsanto, Solae, The Soyfoods Council and SOYJOY. This annual luncheon is an ideal forum for ASA and sponsoring partners to showcase products and demonstrate the importance of soyfoods to sound nutrition. See more photos.


Hungry guests load up on a selection of soy foods at the ASA luncheon. (ASA Photo by Bob Callanan)

Deadline Tomorrow To Sign Up For 2009 SOY Challenge The American Soybean Association (ASA) and BASF Corporation are inviting U.S. soybean producers to sign up for the 2009 Secure Optimal Yield (SOY) Challenge. The sign up deadline is tomorrow, March 13, 2009. More than 400 growers have already signed up for the 2009 SOY program. The SOY program provides an opportunity for growers to use enhanced crop-management technology and techniques to maximize yield and profitability in soybeans. In addition to the one post application of glyphosate routinely used on Roundup Ready® soybeans, SOY program test acres are to be treated with a burndown application that includes a BASF residual herbicide plus one application of Headline® fungicide at R2-R3. The 2009 program will again provide a free one-year ASA membership (new or renewal) for all growers who sign up to participate in the field trials. Growers who enroll, participate in three online training modules and submit field trial results will also receive a $200 Cabela's Gift Card. On top of that, growers who submit a "success story" about their experience with the SOY Challenge will be eligible to win prizes that include a 2010 Dodge truck, $2,000 cash and trip to the 2010 Commodity Classic in Anaheim. The 2009 SOY field trials sign up form and complete program details are available at www.SoyGrowers.com/SOY.

WISHH Hosts Washington Seminar On Protein Needs In Developing Countries   The American Soybean Association's (ASA) World Initiative for Soy in Human Health (WISHH) hosted its annual Workshop in Washington, D.C. today in conjunction with the World Soy Foundation (WSF), a WISHH program. Participants, ranging from ASA members to international food assistance and development experts, examined opportunities to benefit people in developing countries at the conference titled Nutrition and Development: Filling the Protein Gap of Growing Populations through Local, Regional and International Responses. "WISHH is pleased to convene this timely conference," said WISHH Executive Director Jim Hershey. "Global economic problems are undermining the progress that has been made in improving diets and incomes in developing countries. Protein deficiencies can have long-term effects on children that will be more difficult to turn around than the economies of their countries." The Michigan Soybean Promotion Committee and other Qualified State Soybean Boards sponsored the conference on behalf of WISHH Industry supporters of WSF sponsoring the conference included: Cargill - gold-level sponsor; Solae - silver level sponsor; Archer Daniels Midland (ADM), Bunge and The Monsanto Fund - bronze level sponsors.

Ohio Soybean Council Foundation Sponsors Awards At Science Days   The Ohio Soybean Council Federation (OSCF) is sponsoring over $3,000 in Ohio Soybean Bioscience Awards at each of the state's 16 District Science Days, as well as the Ohio State Science Day May 9. OSCF established these awards to encourage the study of bioscience and soybeans, and support today's best and brightest science students who will create tomorrow's innovations in the soybean industry. "We are excited about the Ohio Soybean Bioscience Awards," said Kirk Merritt, OSCF's director of outreach and programs. "It's amazing what innovations students can create and we want to support their growth, ingenuity and interest in science. They are the future of soy-based bioproduct research and development." OSCF will be sponsoring three $100 awards in each of their 16 districts. At the state level, OSCF will give a $1,000 award to the first place finalist, $500 award to the second place finalist and $250 for third place. The awards are available to students in grades 7-12 with projects in the area of agriculture biosciences, bioresources, biopolymers, bioproducts and/or biofuels using soybeans. The combination of science and soybeans has produced bioproducts such as environmentally friendly soy-based inks, toners, adhesives and plastics. Home-grown fuels like soy biodiesel improve air quality and reduce dependence on non-renewable fossil fuels. Last year, 282 students from seventh to 12th grade participated in the Ohio State Science Day in the areas of science, technology, engineering and mathematics. Overall, students earned nearly 100 scholarships and awards values at more than $2.9 million.

Indiana Soybean Alliance Supports Road Testing Of Soy Biodiesel In Alaska   The Indiana Soybean Alliance (ISA) took 250 gallons of cold climate biodiesel to the Arctic Circle March 4-9, to document how it performs in some of the harshest winter conditions. ISA partnered with the University of Alaska Fairbanks (UAF), the Alaska Agricultural and Forestry Experiment Station (AFES) and Purdue University to road test Permaflo™ Biodiesel, which is a unique formulation of biodiesel that is processed using a simple, novel process that significantly reduces the traditional problems of biodiesel performance in cold-weather conditions. The entire trip was documented by a film crew and real-time reports – with photos – were posted on the ISA website during the trip. Permaflo Biodiesel is capable of working at temperatures below -67˚F without gelling. Researchers at UAF and AFES will be joined by ISA farmer-directors and Bernie Tao, agricultural engineering professor and the ISA Professor in Soybean Utilization at Purdue University, to "road test" the Permaflo Biodiesel in two different ways. The fuel will be tested in transportation and stationary power generation. The group will drive two vehicles running on 100 percent Permaflo Biodiesel from Anchorage to Fairbanks, which is a trip of more than 300 miles. One of the Permaflo Biodiesel-powered vehicles will then carry the group an additional 200 miles to the Arctic Circle where they will camp overnight using a generator powered by the Permaflo Biodiesel.

CFTC Creating New Subcommittee On Convergence In Ag Commodity Markets   The Commodity Futures Trading Commission (CFTC) posted a Federal Register Notice March 9, that it is seeking nominations to the Subcommittee on Convergence in Agricultural Commodity Markets, a new Subcommittee of the CFTC's Agricultural Advisory Committee. The Subcommittee on Convergence will identify the causes of poor cash-futures convergence in select agricultural commodity markets and advise on actions to remedy the situation. "Particularly in our agricultural markets, we have noted continuing problems with lack of convergence and weak basis," said CFTC Acting Chairman Michael Dunn. "The Subcommittee on Convergence will bring together all relevant information on the potential causes of these problems and help investigate possible solutions that will restore the markets' effectiveness as a risk management tool for the agriculture sector." The Subcommittee on Convergence will conduct at least three sessions to examine the causes, potential remedies and suggested actions to remedy the lack of convergence. The Subcommittee will present a report with its findings and recommendations to the Agricultural Advisory Committee, which will consider the report and make recommendations to the CFTC as to what further actions warrant consideration. Nominations are sought for highly qualified representatives from government agencies, industry, exchanges and groups representing interests or organizations involved with or affected by the convergence issues.

 
ASA Issues Call To Action In Support Of Senate Letter On Indirect Land Use   The American Soybean Association (ASA) issued a "Call to Action" to members to contact their Senators and request they sign-on to the letter Senators Tom Harkin (D-IA) and Chuck Grassley (R-IA) are sending to the U.S. Environmental Protection Agency (EPA) regarding indirect land use issues in the development of the expanded Renewable Fuel Standard. ASA members were also able to make the request directly to their Senators during Capitol Hill visits on Wednesday as part of the ASA Board meeting in Washington, D.C. Information on the letter and the indirect land use issue can be viewed at www.soygrowers.com/policy/aa031009.htm. Also, listen to this week's Soy Radio Newsline report with ASA member Jim Andrew for more information on indirect land use and the new Renewable Fuel Standard.

ASA Meets With Senate Transportation Committee To Give Input On Rail Issues American Soybean Association (ASA) Washington, D.C. staff met on March 11, with Senate Commerce, Science and Transportation staffers to discuss rail issues and legislation. The committee staff solicited input from agriculture groups on rail policies, proposals and issues. The committee will potentially be considering legislation in 2009 to address captive rail customer issues including competition, rates and service issues. ASA supports reforms for the Surface Transportation Board (STB), which is the federal entity that regulates and adjudicates rail industry disputes. The processes and policies employed by the STB in the past have not been effective in addressing captive rail issues adversely impacting agricultural producers. Working closely with the Soy Transportation Coalition, ASA is analyzing rail issues in order to constructively engage in policy discussions and potential reforms.

Senate Moves On Railroad Antitrust Enforcement Act The Senate Judiciary Committee passed the Railroad Antitrust Enforcement Act (S. 146) by a vote of 14-0 March 5. The American Soybean Association supports this legislation, which would amend federal antitrust laws to eliminate exemptions for railroads so that the U.S. Department of Justice and State Attorneys General would not have to defer to the Surface Transportation Board in antitrust cases and when reviewing proposed mergers. The measure is expected to be considered on the Senate floor prior to the Memorial Day recess. House Judiciary Committee Chairman John Conyers has stated that the House committee will also mark-up rail antitrust legislation by the end of March.

EPA Proposes Greenhouse Gas Reporting Rule The U.S. Environmental Protection Agency (EPA) released a proposed rule outlining the nation's first mandatory greenhouse gas reporting program. The proposed rule would apply to direct emitters as well as any facility that annually emits at least 25,000 metric tons of carbon dioxide equivalents. Affected industries include power plants, petroleum refiners, manufacturers and other large sources of greenhouse gas emissions. According to the EPA, most agricultural sources would not be subject to the reporting requirement threshold, except for approximately 50 large livestock manure operations. The emissions data would be collected as part of the effort toward establishing mandatory emissions reduction programs. The reporting requirements would begin in 2011 and the EPA estimates that the program will cost the private sector $160 million in the first year and $127 million in subsequent years.

ASA-IM Partnership Bolsters Tempe Sales In Indonesia   The Indonesian Tempe Forum conducted its first quarterly meeting of 2009 in Semarang, Central Java for 30 tempe industry representatives. Established in 2007, the Indonesian Tempe Forum works with support from American Soybean Association International Marketing (ASA-IM) to promote soy-based tempe as an Indonesian heritage food and advance its acceptance and popularity both locally and internationally. The forum has become the public voice for the Indonesian tempe industry in efforts to upgrade its overall image and broaden consumption. The Vice Mayor of Pekalongan City, Abu Mufakhir, opened the meeting and expressed his appreciation to the forum for its collaboration with his city in efforts to create a model for tempe production in the region. With funds provided by the Pekalongan City, the Indonesian Tempe Forum will implement an educational program to increase knowledge of the local tempe producers on good manufacturing practices. The project will establish several pilot tempe production plants to serve as models for others in the region. In 2008 Indonesia was the 7th largest customer for U.S. soybeans, purchasing the equivalent of over 36 million bushels. The U.S. holds a commanding market share of over 90 percent of all imported soybeans in Indonesia. Most of the soybeans were U.S. #1 grade for use primarily in the production of tempe.
 
ASA-IM Korea Uses Positive Feedback To Promote U.S. Hi-pro DHSBM   American Soybean Association International Marketing (ASA-IM) Korea held meetings with six local feed mills: Jeil, Choongang, Daehan, Seobu, AT Life Science, Daesang Farmsco and the Korea Feed Association (KFA) to gain feedback on U.S. Hi-pro dehulled soybean meal (DHSBM) delivered in 2008. ASA-IM Korea Technical Program Managing Director Hyung Suk Lee spoke with research and development and quality control personnel from each organization. Uniformly, respondents replied that U.S. Hi-pro DHSBM-based feeds received the fewest complaints of any feed in their product lines Lee explained ASA-IM conducted feeding demonstrations that differentiate the value of U.S. Hi-pro DHSBM from South American and Indian meals. At the research lab of KFA, Lee discussed the quality analyses results of soybean meals from different origins imported in 2008. KFA indicated
that the average protein level of U.S. Hi-pro DHSBM met the quality specification of 47.5 percent set by the KFA, while the fiber content was slightly over the specification of 3.5 percent max. ASA-IM Korea will use the positive feedback from these meetings in future discussions to improve the image of U.S. Hi-pro DHSBM in Korea's feed industry.

Meetings with feed producers provided ASA-IM Korea staff with testimonials supporting the value of U.S. soybean meal in the market. (ASA-IM photo)

Chinese Poultry Industry Team Visit To U.S. Leads To U.S. Exports While broiler production in China expended dramatically over recent years, it is still relatively scattered, small scale and prone to market fluctuation. As many in the China poultry industry are seeking ways to improve production technology and efficiency, they are eager to learn about experiences of developed countries, especially the United States. American Soybean Association International Marketing (ASA-IM) China Poultry Technical Director Yanming Han brought 16 owners of broiler feed and production companies to the International Poultry Expo in Atlanta, Ga. Team members investigated different broiler breeders, equipment for breeders, broiler processing, waste treatment and feed additives. Several team members are now taking steps toward importing containerized shipments of U.S. soybeans. The group visited the ASA-IM booth and expressed appreciation for the opportunity to come to the expo and ASA-IM's long term technical support. Following the expo, the team visited Novus International Co. in St. Louis, who organized a short course for the team. The course covered an introduction to the U.S. broiler business and U.S. swine industry, and updates on broiler nutrition and health. Participants were grateful to ASA-IM for the opportunity to improve their operations.

Romanian Demand For U.S. Soybeans Grows   Romanian soybean production does not satisfy growing demand from the local poultry and livestock industries. At the same time, local operations of companies such as Smithfield and Nutreco have placed pressure on local crushers to produce better quality soybean meal. To meet these demands,
Romanian crushers imported over 900,000 bushels of U.S. soybeans this marketing year. American Soybean Association International Marketing works closely with the local industry to ensure the production of high quality products and continues to educate the poultry and livestock sectors about the economic advantage of U.S. soybean quality in terms of net energy and digestible amino acids.
 

A barge transports U.S. soybeans in Romania. (ASA-IM photo)

 

The activities of the U.S. Soybean Export Council to expand international markets for U.S. soybeans and products are made possible through the American Soybean Association's investment of cost-share funding provided by USDA's Foreign Agricultural Service, support from cooperating industry, and by producer checkoff dollars invested by the United Soybean Board and various State Soybean Councils. 

ASA, 12125 Woodcrest Executive Dr., Ste. 100, St. Louis, MO  63141-5009   Phone:  800/688-7692
President Johnny Dodson 731/286-2268 - First Vice President Rob Joslin 937/492-
8440