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Domestic biofuels production fueling soybean demand

The president and CEO of the National Oilseed Processors Association says there’s been a major shift in the final destination for most U.S. grown soybeans.

Devin Mogler tells Brownfield, “Three or four years ago, we were exporting over 60% of our whole soybeans, most of which were going to China. We’re on pace this year, according to the USDA, to crush over 62% of all soybeans grown in the U.S. right here at home.”

Wisconsin farmer Danny Brisky, who serves on the United Soybean Board, says a strong biofuels policy helps provide some certainty to soybean producers.

“Anything that we can do internally so we’re not relying on exports to some other country, anything we can do to boost our internal demand, it will just pay great dividends for soybean farmers in the country going forward,” he says.

Mogler says the higher biodiesel blend levels announced this year by the EPA are expected to continue to push soybean demand.

“Just a few years ago, the value of the oil in a soybean, which is about 20% of the bean, it was about 30% of the value.”  He says, “It’s now 50% or more of the value.”

He says that demand is also driving rural economic growth as several soybean processing plants are expanding production, and two new plants, one in Ohio and one in Louisiana, are expected to come online later this year.

AUDIO: Devin Mogler – NOPA