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Demand grows for U.S. soybeans

Martin County, Minn., farmer Lawrence Sukalski takes management of soybean checkoff dollars seriously.

Kevin Schulz, Editor

December 19, 2023

5 Min Read
Lawrence Sukalski smiles as he stands in a harvested field with a shed and grain bins behind him
BUILDING BEANS: Lawrence Sukalski and his family raise corn and soybeans in Martin County, Minn., and across the state line in Kossuth County, Iowa. They currently raise more corn acres, but that may be changing to help meet the future growing demand for soybeans. Kevin Schulz

Lawrence Sukalski and his family grow more corn than soybeans on their Martin County, Minn., and Kossuth County, Iowa, farm ground, but that could be changing soon.

“People predict that within five years, we will need to grow 10 [million] or 12 million more acres of soybeans to meet the growing demand,” Sukalski says, “and that will have to come from corn or wheat.”

Location is the main factor for the Sukalskis current cropping system, with Martin County’s strong hog production and proximity to two ethanol plants.

“Livestock, trade and biofuels have made the price of soybeans,” Sukalski says. The nation’s push to lower carbon emissions and the role low-carbon fuels play in reaching that goal will increase the need for more biodiesel production.

Sukalski, Fairmont, Minn., has recently been elected to his third of three terms on the United Soybean Board and is the lead on the infrastructure and connectivity working group on the Demand Action Team. In early December, Sukalski was also elected to the USB Executive Committee.

“On the demand side, we deal with products after the soybeans have been crushed — mainly the meal and the oil,” he explains.

Soybean meal going to livestock is a large market for U.S. soybeans. “We don’t have any problem getting rid of our meal. … We’ve got really good meal,” Sukalski says.

Acting as a voting member of Clean Fuels Alliance America, Sukalski has a finger on the pulse of soybean demand for biodiesel. Say what you will about California’s impact on the rest of the country, but “they are really into low-carbon fuels,” he says. “They use as much biofuels as the other 49 states put together, so it’s a collaborative effort to get biodiesel, renewable diesel and sustainable aviation fuels produced.”

Today’s soybeans are 20% oil, and Sukalski says some people predict that 20% will account for more than half of the price of the soybean. “There’s probably been 10 [million] to 12 million more bushels of crush made in the last few years or that are going to get made,” he says. “And that’s all because of the biodiesel demand and the renewable diesel demand.”

This shift toward greater demand for soybeans more than likely will be reflected on the farms run by Sukalski and his wife, Diane, and his brother Harlan. He and Diane’s adult children — Jacob, Andrew, Kristina, Michael and Suzy — help on the farm. “There are times we have five machines going on the weekend during harvest,” Sukalski says.

Though the Sukalskis do not raise pigs, he sees his hog-raising neighbors benefiting if there is a boost in soybean acres. “If we raise more soybeans for the oil, we should have more meal, so hog producers should have cheaper meal,” he says. “It’s been a lot of fun to see all this expansion in oil.”

More than feed and fuel

On top of domestic demand for soybeans, exports remain an important piece to the market puzzle, and Sukalski says wise use of growers’ checkoff dollars can go a long way in improving the infrastructure to help get beans into markets.

“When the Mississippi River gets low, there are problems. Sometimes they have to load the barges to 50%, and that really slows things down,” he says. USB’s investment in research, analysis and design pushed funding from the U.S. Army Corps of Engineers and the Louisiana Department of Transportation and Development to dredge the lower Mississippi River. USB estimates this will allow barges to deliver an additional 500,000 bushels per ocean vessel, creating the potential to add $461 million in realized value for U.S. soybean farmers.

Ensuring that U.S. soybeans can access valued markets goes beyond dredging the lower Mississippi, and Sukalski says that means expansion of the Grays Harbor terminal in Washington that will enable increased soybean meal exports from 3 million to 6 million metric tons.

He adds that representatives of Minnesota Soybean and other neighboring states “are trying to jump-start the Port of Duluth to start going out that way” through the Great Lakes and the St. Lawrence Seaway.

“We have got to have some sort of a plan when the infrastructure has problems, and we could have a train strike at the same time,” he says.

Greater good

Sukalski is one of four Minnesotans on USB, joining Gene Stoel, Tom Frisch and Patrick O’Leary. Even with that strong North Star State contingency, they have to look beyond state borders for what is best for the U.S. soybean farmer, regardless of their origin.

“The No. 1 thing that we’re trained right away is, you might have your state projects or whatever, but you’re looking for the benefit of everything,” Sukalski says. “If there’s a better return on investment someplace else, that’s what you’re looking at. So, they try to train us to not look out our back door.”

Responsibility with soybean growers’ checkoff dollars is one Sukalski takes very seriously, knowing he’ll take heat from Minnesota soybean producers for approving projects that may not directly benefit growers here. “We might do something that benefits the southern producer,” he says, “but then there are the high-oleic soybeans that are alive and well in Minnesota.”

Regardless of a suggested project’s direct beneficiaries, Sukalski aims to have every voice be heard so checkoffs dollars can have the biggest impact — and he says it is a big impact.

“Checkoff is the best we’ve got going for us,” he says. “We’re seeing $12.34 in return value for every checkoff dollar invested. I’m proud of what it’s accomplished, and I take that very seriously.”

Read more about:

Soybean Checkoff

About the Author(s)

Kevin Schulz

Editor, The Farmer

Kevin Schulz joined The Farmer as editor in January of 2023, after spending two years as senior staff writer for Dakota Farmer and Nebraska Farmer magazines. Prior to joining these two magazines, he spent six years in a similar capacity with National Hog Farmer. Prior to joining National Hog Farmer, Schulz spent a long career as the editor of The Land magazine, an agricultural-rural life publication based in Mankato, Minn.

During his tenure at The Land, the publication grew from covering 55 Minnesota counties to encompassing the entire state, as well as 30 counties in northern Iowa. Covering all facets of Minnesota and Iowa agriculture, Schulz was able to stay close to his roots as a southern Minnesota farm boy raised on a corn, soybean and hog finishing farm.

One particular area where he stayed close to his roots is working with the FFA organization.

Covering the FFA programs stayed near and dear to his heart, and he has been recognized for such coverage over the years. He has received the Minnesota FFA Communicator of the Year award, was honored with the Minnesota Honorary FFA Degree in 2014 and inducted into the Minnesota FFA Hall of Fame in 2018.

Schulz attended South Dakota State University, majoring in agricultural journalism. He was also a member of Alpha Gamma Rho fraternity and now belongs to its alumni organization.

His family continues to live on a southern Minnesota farm near where he grew up. He and his wife, Carol, have raised two daughters: Kristi, a 2014 University of Minnesota graduate who is married to Eric Van Otterloo and teaches at Mankato (Minn.) East High School, and Haley, a 2018 graduate of University of Wisconsin-River Falls. She is married to John Peake and teaches in Hayward, Wis. 

When not covering the agriculture industry on behalf of The Farmer's readers, Schulz enjoys spending time traveling with family, making it a quest to reach all 50 states — 47 so far — and three countries. He also enjoys reading, music, photography, playing basketball, and enjoying nature and campfires with friends and family.

[email protected]

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