As 2009 draws to a close, the U.S. soybean industry is experiencing strong global demand for vegetable oil and protein meal, while a delayed harvest hasn’t dampened expectations for record soybean production forecast at 3.32 billion bushels. U.S. soy exports set a record for the third consecutive year with exports of 1.58 billion bushels. Whole soybean exports totaled 1.28 billion bushels and soymeal exports equaled 300 million bushels, a combined value exceeding $16.3 billion. Yet despite these positive indicators, the realities of managing farm risk are shifting every day. Changing political views, a slow economy, uncertain energy prices and deteriorating infrastructure are but a few of the challenges that lie ahead. For ASA, representing U.S. soybean farmers through policy advocacy as well as international market development and access remains job one. Below are some of the major developments since ASA’s July Board of Directors meeting. –Stephen Censky, December 2009

ASA Pushes Legislation to Extend Biodiesel Tax Incentive in Both Houses   The biodiesel tax incentive is set to expire on December 31, 2009. The tax incentive is vital to the U.S. biodiesel industry and its extension is a top priority for ASA. Senator Maria Cantwell (D-WA) and Senator Charles Grassley (R-IA) have introduced S. 1589, the Biodiesel Tax Incentive Reform and Extension Act of 2009. This bill would extend the credit for five years and restructure it as a production excise tax credit. Congressmen Earl Pomeroy (D-ND) and John Shimkus (R-IL) have also introduced H.R. 4070 in the House. A strong show of support is necessary if we are going to successfully extend the biodiesel tax incentive. ASA has issued Action Alerts calling for co-sponsors and support for both of these critical pieces of legislation.

ASA Submits Concerns and Issues for Climate Change Legislation   On Nov. 4, ASA issued a paper outlining its concerns and issues for climate change legislation. ASA believes that climate change legislation passed by the House of Representatives and the current draft Senate climate change bill do not provide sufficient measures to protect American economic competitiveness, and ASA does not support those measures in their current form. ASA issued its detailed position paper as the Senate continues work on climate change legislation in the Environment and Public Works Committee and considers the potential for future hearings and mark-ups by the Senate Agriculture and other committees of jurisdiction. ASA is concerned with the impacts that could result from enactment of climate change legislation that unilaterally subjects U.S. farmers, manufacturers and other businesses to emissions caps and increased energy costs without appropriate measures to ensure that the U.S. maintains economic competitiveness. 

ASA Provides WTO Priorities to Ambassador Kirk   The American Soybean Association (ASA) has communicated to United States Trade Representative (USTR) Ron Kirk its priorities for restarting World Trade Organization (WTO) negotiations on the Doha Development Agenda on a foundation that offers an improved opportunity for a successful outcome for U.S. farmers. A successful agreement must include significant improvements in market access, greater commitments by developing countries with world-class agricultural exporting sectors, and elimination of Differential Export Taxes. Unfortunately, the current drafts on the table contain so many loopholes and exemptions, U.S. producers would receive little in market access gains while having to give up a great deal in the area of domestic support. ASA and other agriculture producer organizations have repeatedly emphasized the need for a big outcome on market access, commensurate with the concessions U.S. agriculture is being asked to make on domestic support.

ASA Advocates Elimination of Cuba Trade Sanctions   Agriculture Committee Chairman Collin Peterson will be introducing legislation with Rep. Jerry Moran (KS), Agriculture Appropriations Chair Rosa DeLauro (CT), and Rep. Jo Ann Emerson (MO) to expand agricultural trade to Cuba. ASA has been a supporter of eliminating the Cuban sanctions. In 2008, there were more than $134 million worth of soy products exported to Cuba. If current policies that require third country banks, cash advance payments and limits on travel were lifted, these exports would be expected to increase. Cuba relies on imports for most of its food needs and, between 2000 and 2006, Cuba’s food and agricultural imports nearly doubled. Agricultural producers in the United States are well positioned to benefit from additional trade in Cuba – U.S. suppliers can reach the three major Cuban ports in a matter of one day or less, compared to 25 days from Brazil.  

ASA Working for Solution to Turkey Anti-Biotech Regulation    On Oct. 26, the Turkish Ministry of Agriculture published a regulation on biotechnology in the country’s Official Gazette. The new regulation bans the import of any biotech product unless it is accompanied by official documentation showing that any biotech event in a shipment has been registered and commercially available in the originating country for a period of three years. The new regulation went into effect immediately and also requires all biotech products to be labeled. ASA is working closely with the U.S. government, the American Soybean Association International Marketing (ASA-IM) and U.S. Soybean Export Council (USSEC) staffs, as well as other impacted industries, in finding a solution to this situation. Turkey is an important importer of U.S. soybeans with 08/09 imports valued at over $370 million.

ASA Congratulates USDA on Transforming Ag Research with NIFA   ASA congratulated the U.S. Department of Agriculture (USDA) for its efforts to elevate the stature and credibility of agricultural research with the establishment of the National Institute of Food and Agriculture (NIFA). ASA is a leader in promoting the research priorities and needs of the U.S. soybean industry. Expanding agricultural research and establishing NIFA has long been an ASA priority. We applaud USDA for recognizing and acting on the need for a new approach to research. NIFA was established in the 2008 Farm Bill and officially launched on Oct. 8. NIFA’s mission is to stimulate and fund the research and technological innovations that will enhance and make American agriculture more productive and environmentally sustainable while ensuring the economic viability of agriculture and production.

ASA Garners Over $12.8 Million in Export Funding from USDA/FAS   On Nov. 11, the U.S. Department of Agriculture (USDA) announced funding received by 70 U.S. trade organizations during Fiscal Year 2009 to promote U.S. food and agriculture exports under the Market Access Program (MAP) and the Foreign Market Development (FMD) Cooperator Program administered by the Foreign Agricultural Service (FAS). Under MAP, ASA’s generic ceiling is $5,168,853, plus an additional $300,000 under GBI (global broad-based initiatives) for a total of $5,468,853. Under FMD, ASA’s generic ceiling is $7,351,169. This brings ASA’s total to $12,820,022 in funding for promotion of U.S. soybeans and soybean products.

ASA Membership Grows In 2009   ASA achieved a 1.4 percent growth in membership in fiscal year 2009, compared to 2008. FY09 ended Sept. 30. The final total was 22,579 members. Congratulations to ASA recruiters and the state soybean associations.

ASA Celebrates 90th Year As Grassroots Voice of Soybean Farmers   Soybean farming has changed dramatically since 1920. But even then, decisions made on Capitol Hill were having a direct effect on the production and profitability of soybean farmers. That’s why the American Soybean Association (ASA) was established 90 years ago—and continues to be the advocate and grassroots voice of the nation’s soybean farmers when important policy is being discussed and created. In 2010, ASA celebrates its 90th year as the only member-driven association focused on representing the best interests of soybean farmers on Capitol Hill and around the globe.