Farming is like any other family business. You make day-to-day decisions on what’s best for your business right now. But you are also focused on the long-term, making decisions that will ensure your business’s viability for the next generation.
Michigan soybean farmers have a marketing opportunity that fits very well with this business acumen.
High oleic soybeans offer farmers premium opportunities to impact their business now, with long-term customer potential to reach 18 million acres, which would make it the fourth-largest grain and oilseed crop in the United States, behind corn, commodity soybeans and wheat.
Premiums average around 45 cents per bushel, but vary depending on location. Jim Domagalski, a soybean farmer and soy checkoff farmer-leader who farms near Columbus, Michigan, understands the importance of high oleic’s premiums to Michigan farmers.
“High oleic soybeans give us a new demand with our supply – plus a premium,” says Domagalski.
Domagalski also sees the long-term business potential of high oleic soybeans. “Growing specialty beans that provide for our customers’ needs is one more advantage that sets us apart from our competitors.”
Changes in federal policy and consumer attitudes to trans fats have cost soybean farmers more than 4 billion pounds in soybean demand. But high oleic soybeans have zero trans fats, so it is poised to win back that lost market volume without taking away demand for commodity soybean oil, which still meets the needs of many food and industrial customers.
Today, high oleic soybeans are grown on more than 625,000 acres – primarily in Indiana, Ohio and Michigan, and including areas of Nebraska, Minnesota, Iowa, Illinois, Pennsylvania, New Jersey and the Delmarva Peninsula.
With so many states teaming up with Michigan to grow soybeans, the food industry is taking notice of high oleic soybeans. New locations are being added every year, and current programs are expanding their offerings.
“As soybean farmers, we have to try to get into new markets,” says Domagalski. “That will help us increase our profitability potential.”
Farmers can find locations requesting high oleic soybeans and their delivery options at SoyInnovation.com.
INNOVATION BEYOND THE BUSHEL
©2017 United Soybean Board