CEO Report To The Board & States
March 2007

With strong commodity prices being driven by core demand for soy products and newfound enthusiasm for biofuels, the future of U.S. production agriculture looks very bright. Indeed, today’s outlook for U.S. farm products is running ahead of any foreseeable expectations. However, this time of high income potential brings with it unique challenges for the American Soybean Association, and it would be a mistake to be lulled into complacency about critical soybean issues. The potential loss of export market share resulting from fewer soy planted acres, the ongoing need to improve our transportation infrastructure, the 2007 Farm Bill, the outcome of the DOHA negotiations, and how to improve soybean yields and quality traits, are very much on ASA’s radar screen. But for the moment, let us review some of the successes outlined below. Stephen Censky, March 2007

U.S. Soy Exports Exceed 1 Billion Bushels U.S. exports of soybeans plus soybean meal reached 1.1 billion bushels for MY2005/2006, including over 947 million bushels of soybeans and over 154 million bushels equivalent of soybean meal. China continues to be the number one market for U.S. soybeans, buying just over 356 million bushels. Mexico came in as the top export market for both soybean meal and soybean oil. One reason for the increase in exports to the Latin America region is the North American Free Trade Agreement (NAFTA), which enables the U.S. to maintain nearly 100 percent market share in Mexico. ASA played a key role in getting NAFTA passed. Additionally, ASA’s work to ensure access to the Chinese market, and other markets around the world, are partly responsible for these impressive export results.

USDA Awards More than $12 Million to ASA When the U.S. Department of Agriculture (USDA) announced 2006 fiscal year allocations for multiple agricultural promotion programs, ASA was a leading recipient of funding with awards of more than $12 million. Under the Foreign Market Development Cooperator program, ASA was awarded the most of any organization with more than $7 million. Under the Market Access Program, ASA was awarded more than $4.6 million, and through the 2006 Quality Samples Program, ASA will receive an additional $50,000. ASA invests these funds, along with state and national checkoff contributions, in program activities that support about 1 billion bushels of U.S. soybean exports annually.

ASA 2007 Farm Bill Proposals Unveiled ASA held a national teleconference on Feb. 12, to discuss its 2007 Farm Bill proposals with journalists and broadcasters. Journalists from the Des Moines Register, Reuters news service, and Feedstuffs, Agri-Pulse, Successful Farming and Farm Progress magazines were among the participants who asked questions. ASA also outlined its 2007 Farm Bill proposals to listeners on AgriTalk Radio and other farm broadcast stations around the country. ASA has shared its 2007 Farm Bill proposals with lawmakers and has been briefing key Agriculture Committee staff.

ASA Soybean Leadership College Held The 2007 Soybean Leadership College was held Jan. 3-4, with more than 130 participants. This program featured motivational speakers, and ASA’s Washington representatives provided an overview of what’s expected in the 110th Congress, including Farm Bill debate and biodiesel proposals, as well as conservation and trade. U.S. Department of Agriculture Under Secretary for Marketing and Regulatory Programs Bruce Knight participated in the Policy Forum.

ASA Leads Group on Mission to Argentina and Paraguay ASA hosted an International Growers’ Forum designed to give participants a first-hand look at South American agriculture. The Forum was a regional educational tour designed to enhance producer knowledge and skills, and encouraged the exchange of information by visiting farms, processors and government agencies.

First ASA AgriBusiness Council Meeting Held   ASA hosted soy industry representatives at the inaugural AgriBusiness Council meeting on Feb. 13-14, in Washington, D.C. The Council provides a forum for soybean producer leaders and representatives from a broad spectrum of companies across the soybean industry to discuss issues critical to the future of the U.S. soybean sector, and to develop strategies for working together to achieve mutual goals. The focus of the first Council meeting was on the rapid growth of interest in renewable fuels, including the potential expansion of the U.S. biodiesel industry, its impact on food, as well as fuel markets, and the development of appropriate public policies to support its future development. Agri-Business Council members include the following organizations: ADM, BASF, Bayer, Co-Bank, CTB Inc., Dow AgroSciences, Illinois Soybean Association, John Deere, Minnesota Soybean Association, Missouri Soybean Association, Monsanto, Pioneer, Syngenta Crop Protection, Syngenta Seeds, and West Central.  

More than 4,000 People Experience ‘Bounty on the Bay’ at Commodity Classic Near-record numbers of growers and their families in attendance at the 2007 Commodity Classic enjoyed a lively General Session, information-packed What Is New, Early Riser Marketing and Learning Center sessions. The event drew the second largest crowd behind the 2004 Commodity Classic in Las Vegas. More than 1,300 growers from ASA, the National Corn Growers Association and the National Association of Wheat Growers came to Tampa to learn ways to improve profitability and productivity on their farms. More than 100 media participated.  

SoyPAC Auction Raises $50,000 More than 80 items were sold and 270 people participated in the ASA SoyPAC auction held Thursday evening, March 1, in conjunction with the Commodity Classic in Tampa, Fl. Preliminary figures show that $50,000 was raised to help ASA support the political campaigns of lawmakers who support soybean farmer-friendly legislation. A special "thank you" to all those who attended and bid on the auction items.

Three New Agribusiness Partnership Programs Launched ASA kicked off 2007 with the introduction of three new grower education programs designed to maximize soybean production. These programs include the ASA-John Deere "Reach for the Stars" education program and contest, which provided technology information packets to nearly 1,400 growers, and the opportunity for the 15 contest winners to try a premium level precision ag system on their farm for the entire growing season. The program also includes a series of regional grower meetings this summer and next winter. With BASF Corporation, ASA has launched the "Secure Optimal Yield" field trials program that will provide more than 100 soybean growers with an opportunity to demonstrate enhanced weed and disease management techniques on their farm. And finally, ASA, in partnership with Plant Health Care, Inc., will run a 2007 field trial program to evaluate N-Hibit Seed Treatment as a tool to lower Soybean Cyst Nematode pressure.

World Soy Foundation Receives 501(c)(3) Status The Internal Revenue Service has granted 501(c)(3) charitable organization status to the World Soy Foundation (WSF), a program of ASA’s World Initiative for Soy in Human Health (WISHH) program. The WSF was created by WISHH to provide food, educate Private Voluntary Organizations and conduct nutritional services. With this designation, individual donors, public and private foundations, corporations and industry will now receive tax deductibility for their contributions to these humanitarian works.