Demand for healthier cooking oils continues to rise and higher premiums from processors are solid evidence processors want to be in that market. Farmers raising Pioneer Plenish high-oleic soybeans have long been paid a premium for the product, and the process for setting those premiums is an annual event.
Pioneer has announced that in 2022, processor-paid premiums on these specialty soybeans are up significantly over 2021. And there's a new agreement with Cargill to increase the number of draw areas for Plenish soybeans in Midwest soybean states.
In a release announcing the premiums, Roger Theisen says that "premiums are more attractive than ever for growers who plant Plenish high oleic soybeans. For example, if a growers typically hits 65 bushels-per-acre and can net a 75-cent premium on top of whatever current soybean prices are, that means nearly $50 more in potential profit per acre."
Plenish soybeans are raised as an identity preserved product and through the program processors pay a premium. More growers are capitalizing on this program. The United Soybean Board reports that high-oleic soybean acres are expected to grow to 1 million nationally in 2022, up from 600,000 acres in 2021. Plenish soybeans are planted on most of those acres.
Processors and participating elevators make delivery of Plenish soybeans as similar as possible to commodity soybeans. The 2022 supply chain for Plenish soybeans now has six contract processors with delivery locations in most of the soybean-growing states. Here's a look at the programs for 2022:
ADM — Premium is set once by the producer at any point from Aug. 13, 2021, through Aug. 31, 2022, by taking 10% of the November 2022 futures price, potentially reaching up to $1.50/bu. ADM has delivery locations in Indiana and Ohio.
Ag Processing, Inc. (AGP) — Growers can earn a processor-paid premium of $0.75/bu for harvest delivery to a designated elevator or $0.80/bu for on-farm storage. AGP has delivery locations in Nebraska.
Bunge — Farmers can earn a processor-paid premium of $1.15/bu for harvest delivery to a designated elevator or $1.25/bu for on-farm storage, plus an additional $3.00/acre if invoiced and contracted by Dec. 8, 2021. Bunge has delivery locations in Indiana and Ohio.
Cargill — Farmers can earn a processor-paid premium of $0.85/bu for harvest delivery to a designated elevator or $1.00/bu for on-farm storage. Cargill has delivery locations in eastern Iowa, Illinois and southern Ohio.
CHS — Farmers can earn a processor-paid premium of $0.85/bu for harvest delivery to a designated elevator or up to $1.30/bu depending on delivery or the buyer’s call window. CHS has delivery locations in southern Minnesota.
Perdue AgriBusiness — Farmers can earn a processor-paid premium of $0.55/bu for harvest delivery to a designated elevator or $0.80/bu for on-farm storage, plus an additional $0.10/bu if 100% of their soybean acres are planted to Plenish soybeans. Perdue has delivery locations in Delaware, Maryland, New Jersey, New York, Pennsylvania and Virginia.
Adds Theisen: "This is a great opportunity for growers to expand their options and differentiate their income."
Source: Pioneer. The source is solely responsible for the information provided and is wholly owned by the source. Informa Business Media and all its subsidiaries are not responsible for any of the content contained in this information asset.