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Northern soybean growers are getting short changed

Northern soybean growers are getting short changed

Northern soybeans may be lower in protein, but the feed value is essentially the same or even higher than soybeans grown in the south.

When William Wilson speaks, everybody in North Dakota agriculture usually listens.

Wilson is a University Distinguished Professor and CHS chair in Risk and Trading and North Dakota State University. He’s an expert in grain exports, logistics and economics.

He recently wrote an article on soybean protein values and exports. Some of the key points:

1) North Dakota farmers are getting short-changed.

2) Soybean buyers use protein content as a measure of value.

3) But protein content isn’t even used in feed formulations. The essential amino acids are.

Soybeans grown in northern states have lower protein content are are dscounted for it, but the feed value of the beans is essentially the same or higher than beans being grown in southern states and Brazil.

4) The protein content North Dakota soybeans are on average aobutr 4 percent points less than soybeans grown in the southern U.S. and Brazil.  The difference is thought to be due to the longer period of daylight during the growing season in North Dakota than in southern states and Brazil.

5) However, the amino acid content of North Dakota soybeans is essentially the same or even higher than southern U.S. or Brazilian soybeans.

6) An alternative measure of end-use value in soybean meal illustrate an inverse relationship between the critical amino acid value (CAAV) and protein level. Results from the data analysis indicate that the CAAV from North Dakota soybeans (16.62%) are equal or slightly higher than those from comparable regions (16.50%). Taken together, it indicates that while selling on protein levels, and prospectively receiving discounts, the greater CAAV values from North Dakota soybeans result in a windfall for end users.

Read Wilson’s article.

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