[Congressional Record (Bound Edition), Volume 153 (2007), Part 11]
[Extensions of Remarks]
[Pages 14965-14967]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             2007 FARM BILL

                                 ______
                                 

                            HON. SAM GRAVES

                              of missouri

                    in the house of representatives

                        Wednesday, June 6, 2007

  Mr. GRAVES. Madam Speaker, the 2007 farm bill is one of the most 
important pieces of legislation this House will consider this year. 
From such varied topics as rural development to nutrition to 
conservation to energy to research to disaster assistance, the farm 
bill will impact all of these issues and many, many more. In my 
district, Missouri's sixth, we have a lot of farmers diversified in 
different row crops and livestock. Many of my fellow farmers in 
Northwest Missouri are soybean producers, so it is with this in mind 
that I would like to draw this distinguished body's attention to a 
letter I have recently received from the United Soybean Board, an 
organization responsible for administering the soybean research and 
promotion programs of the soybean checkoff program. We've heard a lot 
about checkoff programs over the years, and I hope my colleagues will 
find the following correspondence useful as we move forward with the 
2007 farm bill.

                                                     May 24, 2007.
     Hon. Sam Graves,
     House of Representatives,
     Washington, DC.
       Dear Representative Graves: Thank you for your letter of 
     May 10, 2007, regarding the soybean research and promotion 
     efforts of the soybean checkoff program. I very much welcome 
     the opportunity now and in the future to provide you, other 
     members of Congress, and the soybean farmers of Missouri's 
     Sixth District and in other parts of our country, information 
     about our soybean checkoff.
       As you know, at the urging of the nation's soybean farmers, 
     Congress created the Soybean Promotion, Research and Consumer 
     Information Act in 1990. Since that time, the United Soybean 
     Board (USB), of which I serve as Chairman, and 29 Qualified 
     State Soybean Boards (QSSBs), have invested soybean checkoff 
     funds to provide profit opportunities for all U.S. soybean 
     farmers.
       Keeping in mind your suggestion for brevity, I am pleased 
     to provide answers to the specific questions you posed in 
     your letter about the accomplishments of the soybean 
     checkoff:
       1. Recently, biodiesel seems to receive a lot of news 
     coverage. What role, if any, has the checkoff, national or 
     state, played in the development or marketing of this product 
     and what is the relationship of USB to the National Biodiesel 
     Board?
       Simply put, America's soybean farmers, through our soybean 
     checkoff, established the biodiesel industry in the United 
     States. The Missouri Soybean Merchandising Council (MSMC), a 
     Qualified State Soybean Board (QSSB), funded the first 
     significant biodiesel research back in 1990. The USB, MSMC 
     and other QSSBs helped establish the National Biodiesel Board 
     (NBB) in 1992. The soybean checkoff continues to fund most of 
     the NBB-coordinated research and promotion that has made 
     biodiesel one of the fastest-growing renewable fuels in the 
     United States. According to NBB, biodiesel production in the 
     U.S. has increased from an estimated 500,000 gallons in 1999 
     to 225 million gallons in 2006. Our biannual soybean farmer 
     attitudes survey showed only 23 percent of all soybean 
     farmers used biodiesel in 2002. Our latest survey shows more 
     than 50 percent of all U.S. soybean farmers now use biodiesel 
     in their operations.
       2. I know that export markets for American agricultural 
     products are very important to our nation's trade balance. 
     How involved have USB or the QSSBs been, if at all, in 
     developing these markets?
       Since Congress established the national soybean checkoff 
     program in 1990, U.S. soybean exports have doubled. U.S. 
     Department of Agriculture figures show we exported 557 
     million bushels of U.S. soybeans in 1990. Last year, we 
     exported a record 1.1 billion bushels of U.S. soybeans.
       The growth of U.S. soy exports to China serves as an 
     example of the kind of export development work accomplished 
     by the soybean checkoff. State soybean checkoff programs 
     funded the early reverse marketing activities in China to 
     change the country from an exporter into an importer of soy. 
     Shortly after Congress created the national soybean checkoff, 
     USB also contributed to those efforts, such as providing 
     technical information and support to China's poultry, 
     livestock and aquaculture industries on how to use soy as a 
     valuable protein source in animal feed. In 1995, these 
     efforts, funded with soybean checkoff dollars and market 
     development funds from the U.S. Department of Agriculture's 
     Foreign Agricultural Service, helped turn China from being a 
     soy competitor into a U.S. soy customer. China is now the 
     biggest export customer of U.S. soy. Most recently, working 
     with soybean checkoff farmer-leaders and staff, a group of 
     Chinese buyers signed contracts in the United States to 
     purchase 211 million bushels of U.S. soybeans, worth more 
     than $2 billion. USDA projects when the marketing year ends 
     later this year, China will buy over 400 million bushels of 
     U.S. soy. In addition to building markets for U.S. soy in 
     China, the soybean checkoff funds U.S. soy market development 
     efforts in 80 countries around the world.
       3. As a nation, we are becoming increasingly health 
     conscious, and I know that soy is regarded as having positive 
     health benefits. What has the checkoff program done to

[[Page 14966]]

     help document these health benefits if at all? In addition, 
     we are all aware of the issue of trans fats in the foods we 
     eat. Is this an issue for soybeans and if so, what has been 
     done to address it?
       The soybean checkoff has been instrumental in funding the 
     necessary research to document the health benefits of soy. 
     Early on, state and national soybean checkoff organizations 
     funded the scientific research that helped lead to the U.S. 
     Food & Drug Administration's health claim in 1998 linking the 
     benefits of soy to reducing the risk of heart disease. Also, 
     USB's Soy Health Research Program has invested about $500,000 
     to assist scientists in submitting soy-related research grant 
     applications, which has helped secure more than $12 million 
     in research funds from the National Institutes of Health. 
     This 24-1 return on soy research investments seeks to 
     document how soy's role in a healthy diet can reduce the risk 
     of such diseases as breast cancer, prostate cancer and 
     osteoporosis.
       Second, in the late 1990s, USB identified trans fat as an 
     issue that could have a major impact on the future 
     utilization of soybean oil. The checkoff established an 
     initiative to determine food industry trends and needs, which 
     eventually led to the creation of QUALISOY in 2004. This 
     collaborative U.S. soybean industry-wide effort helped 
     accelerate the development of new soybean varieties with oil 
     that requires little or no hydrogenation and, therefore, is 
     free of trans fats and ultimately lower in saturated fats. 
     This year, U.S. soybean farmers are expected to plant up to 
     1.75 million acres of these new varieties, which also provide 
     additional profit opportunities to U.S. soybean farmers.
       4. We are also aware of the threat of Asian Soybean Rust to 
     the American soybean farmer. I am pleased that USDA so 
     quickly responded with specific programs to counter this 
     threat. How, if at all, were checkoff funds used to assist 
     this effort? How else, if at all, have either state or 
     national checkoff funds been used to benefit soybean 
     production, either by increasing yields or dealing with 
     pests?
       Similar to our efforts to increase soybean exports, the 
     challenge to minimize the impact of Asian Soybean Rust 
     provides a good example of how checkoff investments made by 
     soybean farmers can be leveraged with federal government 
     dollars to benefit us--and ultimately all consumers--with a 
     safe, abundant supply of soy. Beginning in 2005, the soybean 
     checkoff helped coordinate and fund an early-warning system 
     for soybean rust through a cooperative effort with USDA. The 
     system includes an extensive series of sentinel plots planted 
     to soybeans that receive regular monitoring for rust and 
     other plant pests and diseases. This system keeps us well 
     informed about the spread of rust and helps us scout, monitor 
     and manage our crops to prevent or minimize yield loss from 
     this potentially devastating disease.
       More broadly, finding solutions to soybean yield-robbing 
     pests and diseases traditionally has ranked as USB's second 
     largest investment area. For example, in 2001, USB-funded 
     researchers published breakthrough research identifying 
     specific genes in the Soybean Cyst Nematode (SCN), the 
     leading cause of soybean yield loss from plant diseases. This 
     helped serve as basis for more durable SCN resistance in 
     soybean varieties. Just last year, researchers funded by the 
     soybean checkoff published genetic markers for two rust-
     resistant genes. This allows soybean breeders to incorporate 
     these genes into breeding programs without laborious testing 
     against the harmful disease. We expect this to lead to new 
     rust-resistant varieties in the next four to five years. 
     These are just a few examples of how the soybean checkoff has 
     helped me and other U.S. soybean farmers prevent or reduce 
     soybean yield loss from harmful plant pests and diseases. No 
     doubt, these efforts have helped U.S. soybean production grow 
     from 1.98 billion bushels in 1991 to a record 3.18 billion 
     bushels in 2006.
       5. I know that soy products have been featured in the 
     federal government's bioproducts support program. Are you 
     aware of what soy products have been featured in this effort 
     and if so, could you elaborate on how, if at all, national or 
     state checkoff funds have been utilized to develop any of 
     these products?
       This is an area of special interest to me since I served 
     three terms as chair of USB's New Uses program and one year 
     as team lead of our Biobased Products Initiative. Our surveys 
     show U.S. soybean farmers believe developing new soy uses, 
     such as soy-based inks, plastics, lubricants, adhesives and 
     solvents, should be a top priority of our checkoff. The most 
     notable new industrial uses for soy developed by the soybean 
     checkoff include soy biodiesel and soy ink. But hundreds of 
     soy-based products, many developed with the help of soybean 
     checkoff-funded research, now also fill our ever-growing Soy 
     Products Guide, a catalog of soy-based bioproducts we publish 
     annually. Recognizing the purchasing power of the federal 
     government, the soybean checkoff has taken the lead in 
     familiarizing federal purchasing officials with the 
     availability and benefits of these products through workshops 
     held in the nation's capital. Last year, USDA finalized its 
     list of the first six categories of biobased items that would 
     be awarded purchasing preference under the federal 
     bioproducts support program. USB has funded research and 
     marketing efforts with companies that make up three of the 
     six categories, which include soy-based mobile hydraulic 
     fluids, roof coatings and penetrating lubricants. Late last 
     year, USDA proposed that more items be designated for 
     preferred federal purchasing. When finalized, we anticipate 
     that more soy-based bioproducts developed with the help of 
     the soybean checkoff, such as spray foam insulation, carpet 
     backing, electric transformer fluids, engine oils, cleaners 
     and other solvents, will receive preferred purchasing 
     designation.
       6. The Soybean Promotion, Research and Consumer Information 
     Act, as passed in 1990, called for regular ROI studies to 
     evaluate the return to soybean farmers on their investment in 
     the checkoff. Have those studies been undertaken, and if so, 
     what were the results? If these studies do not reflect the 
     additional funds that may have been leveraged through the use 
     of checkoff funds, please expand on that point as well. In 
     this same context, what evidence, if any, do you have that 
     soybean farmers continue to support the checkoff?
       Evaluation remains a cornerstone of every soybean checkoff-
     funded program. All USB-funded programs must have an 
     evaluation component. As required by law, the soybean 
     checkoff has also conducted regular return-on-investment 
     (ROI) studies. An independent study, conducted in 1998 by 
     Texas A&M, found that for every checkoff dollar invested, 
     U.S. soybean farmers earned an additional eight dollars in 
     net revenue. A similar study, conducted in 2003 by World 
     Perspectives and AgriLogic, found a 6:1 ROI. USB's next 
     regular ROI study will be conducted next year.
       In addition to those noted above, numerous examples exist 
     of how we maximize checkoff investments by achieving outside, 
     matching funds to benefit all U.S. soybean farmers. For 
     example, state and national soybean checkoff international 
     marketing investments, which this year total $11.3 million, 
     achieved a matching investment of $14.2 million in Foreign 
     Market Development and Market Access Program funds through 
     USDA's Foreign Agricultural Service. USB funding of the 
     development of the soybean genome map and development of 
     genetic markers helped lead to a nearly $5 million dollar 
     grant for soybean genomics research conducted by the National 
     Science Foundation. Soybean checkoff-funded genome research 
     also positioned soy to be chosen by the U.S. Department of 
     Energy's Joint Genome Institute as the next plant genome to 
     be sequenced, a project valued at $11 million.
       The federal law that created the soybean checkoff requires 
     that U.S. soybean farmers have an opportunity every five 
     years to request a referendum on continuation of the program. 
     In 1999, less than 3 percent of eligible soybean producers 
     requested a referendum on the soybean checkoff. In 2004, less 
     than half of 1 percent of all eligible soybean producers 
     requested a referendum. USB conducted its first statistically 
     valid, biannual soybean farmer attitudes survey in 1997. At 
     that time, 65 percent of soybean farmers surveyed indicated 
     they supported the soybean checkoff. The most recent survey 
     conducted earlier this year showed 73 percent of U.S. soybean 
     farmers support the soybean checkoff.
       7. And even though it is not directly related to the role 
     of the United Soybean Board, what, if any, role has it played 
     in the broader soybean or agricultural industry that members 
     of Congress should know about?
       The 64 farmer-directors who serve voluntarily on USB 
     believe it's also our responsibility to help lead the U.S. 
     soybean industry. Since 2002, USB has brought together state 
     and national soybean checkoff and association leaders and 
     staff for CONNECTIONS, a joint planning meeting to help 
     establish our research and promotion priorities and 
     strategies for the following three to five years. Last year, 
     USB took the process a step further by engaging all players 
     in the U.S. soybean value chain to actively take part in Soy 
     2020. This U.S. soybean industry-wide effort created a vision 
     for the future of U.S. soybeans for the next twelve years. It 
     focuses on four key stages: a comprehensive environmental 
     scan that identified key areas of emphasis; analysis of 
     different possible scenarios for the U.S. soybean industry; 
     development of the vision and strategies to support each 
     scenario; and a formal launch, which took place earlier this 
     year.
       Aside from this formal joint planning meeting, the farmer-
     directors of USB have also committed to a leading cause in 
     U.S. agriculture--supporting the livestock and poultry 
     industries. The animal agriculture industry is inherently 
     important to the soybean industry, as it is our number one 
     customer, consuming nearly all of the domestically used 
     soybean meal. The USB-led Animal Agriculture Initiative is an 
     effort to build support among soybean farmers and leading 
     agriculture organizations, including the American Farm Bureau 
     Federation, the Animal Agriculture Alliance, and other 
     checkoff organizations such as the National Pork Board. This 
     combined, concentrated support will not only help protect the 
     domestic livestock and poultry industries from unnecessary 
     criticism and ridicule, but will also help

[[Page 14967]]

     protect our number one market for soybean meal.
       I am confident this information will help you and other 
     members of Congress understand how our self-help research and 
     promotion program has created new U.S. soybean demand and 
     profit opportunities for all U.S. soybean farmers. Please let 
     me know if we can provide any additional information for you 
     and your colleagues.
       The 64 volunteer soybean farmer-leaders who make up our 
     board truly believe we have an effective, efficient and 
     farmer-driven soybean checkoff.
           Respectfully yours,
                                                     Eric Niemann,
     Chairman, United Soybean Board (USB).

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