THE ROAD AHEAD P 3. Meet the Council Team P 4. Financials P 6. Letter from the Chair P 8. Driving Soy
P 10. Ice Fish House P 12. Biodiesel Superpower Campaign P 14. County Promotions P 16. Grower Input Survey
P 26. On the Horizon
P 18. Plasma Blue P 20. Giving Thanks P 22. Ag Innovation Campus P 24. Foreign Markets Now Entering Checkoff Zone
P 28. Mission Statement MINNESOTA SOYBEAN POP. 27,000
2
Representing
The elected board of soybean-producing directors are dedicated to maximizing and investing checkoff dollars for the prosperity of all soybean farm families. Council directors – 15 in total – are elected from every district of Minnesota to ensure the state’s diverse range of soybean farmers have an equal voice. The Council also supported four directors on the United Soybean Board in 2021, including Rochelle Krusemark, Gene Stoel, Lawrence Sukalski and Bill Zurn.
Kris Folland
District 1, 2, & 3
1
Bill Zurn
2
District 1,2,3
Gene Stoel
Jim Willers
Ron Obermoller
Cole Trebesch
Rochelle Krusemark
District 8
District 8
Treasurer, District 8
Ben Storm
Glen Groth
Lawrence Sukalski
District 7
District 7
District 7
3
Tom Frisch
Vice Chair, District 4
Paul Freeman District 4
Patrick O’Leary District 4
6 4
Gail Donkers
5
Joe Serbus
Chair, District 5 & 6
Pat Sullivan
Secretary, District 5 & 6
7 8
9
District 9
District 9
USB Director
3
Financial Report MINNESOTA SOYBEAN RESEARCH AND PROMOTION COUNCIL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF FINANCIAL POSITION MODIFIED ACCRUAL BASIS
ASSETS
August 31, 2021
CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable Prepaid Expenses Total Current Assets
$
PROPERTY AND EQUIPMENT Building Equipment Vehicles Other Less: Accumulated Depreciation Net Property and Equipment OTHER ASSETS TOTAL ASSETS
7,093,995 46,674 4,015 7,144,684
2020 $
3,604,985 58,769 8,590 3,672,344
1,081,922 337,659 199,746 300,000 1,919,327 1,149,285 770,042
1,081,922 295,276 289,415 300,000 1,966,613 1,173,890 792,723
507,083
240,140
$
8,421,809
$
4,705,207
$
1,639,983
$
1,418,799
LIABILITIES AND NET ASSETS CURRENT LIABILITIES Accounts Payable NET ASSETS Without Donor Restrictions Board Designated PRE-SPARC Funds Contingency Prior Year Project Commitments Net Investment in Property and Equipment Undesignated Total Without Donor Restrictions Non-Controlling Interest Total Net Assets TOTAL LIABILITIES AND NET ASSETS
See accompanying notes
4
$
222,556 1,500,000 1,498,092 770,042 2,672,905
222,366 1,500,000 861,015 792,723 (208,435)
6,663,595 118,231 6,781,826
3,167,669 118,739 3,286,408
8,421,809
$
4,705,207
3
Financial Report MINNESOTA SOYBEAN RESEARCH AND PROMOTION COUNCIL AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ACTIVITIES MODIFIED ACCRUAL BASIS
For the Year Ended August 31, 2021 2020 REVENUES AND SUPPORT Assessment Revenue Collected Less: Assessment Revenue Remitted Net Assessment Revenue
$
Royalty Rental Late Fees Grants Interest Income Gain on Investments Other Revenue Net Revenues and Support
24,945,497 $ (14,413,884) 10,531,613
16,609,065 (9,716,677) 6,892,388
48,733 9,000 22,892 50,000 11,351 266,621 212,919 11,153,129
30,259 9,000 8,798 273,000 42,241 77,700 66,840 7,400,226
EXPENSES Program Services Management and General Total Expenses
6,268,191 1,389,520 7,657,711
5,398,256 1,182,960 6,581,216
CHANGE IN NET ASSETS BEFORE NON-CONTROLLING INTEREST
3,495,418
819,010
508
20,020
CHANGE IN NET ASSETS
3,495,926
839,030
NET ASSETS - BEGINNING OF YEAR
3,167,669
2,328,639
NET LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST
NET ASSETS - END OF YEAR
See accompanying notes
$
6,663,595
$
3,167,669
4
5
2021
6
The Driver’s Seat
2020 was a year littered with pit stops, potholes, speed bumps and roadblocks at every turn. But in 2021, we did our best to leave the past in the dust. The Minnesota Soybean Research & Promotion Council, guided by a roadmap of checkoff-funded projects, turned the key and hit the pod highway with our eyes set on the road ahead. All the while, we were fueled by homegrown biodiesel that kept us rolling throughout 2021. Our farmer-led team and staff began the year working in a hybrid virtual/in-person mode, but our work on behalf of our state’s nearly 28,000 soybean farmers went undeterred. Each of our directors has embraced the responsibilities and privilege of directing soybean checkoff funds with the utmost care. These duties include sponsoring unbiased agronomic research that improves farmer profitability. To jumpstart 2021, we unveiled our first Grower-Input Survey to help farmer-leaders and researchers better address the diverse production challenges facing growers across our state. In the summer, we held a second survey to further identify emerging agronomic and production issues. Throughout the spring, our team laid the groundwork for the May launch of our Driving Soy promotion, putting soybean checkoff investments on the road once again. Minnesota is proud to be the only state that supports a statewide county soybean program. In 2020, many of the county promotional events – parades, fairs, Breakfast on the Farm, etc. – were cancelled due to the pandemic. Throughout summer 2021, we helped our 44 organized soybean counties reconnect with their communities by donating sets of Goodyear’s soy-based tires to each county’s respective sheriff’s departments and to help promote value-added uses of soybeans. Now that’s what I call treading new ground! This campaign exceeded all expectations. Our team and award-winning communications staff went into next gear, positioning the soybean checkoff in the driver’s seat by spotlighting how those investments go the extra mile toward boosting the bottom lines of our producers. In June, we safely held our first in-person event of the year by hosting Sen. Tina Smith at the Council’s Mankato headquarters. We were honored to meet with the senator and highlight two promising Council initiatives: Plasma Blue, which is primed to revolutionize the biodiesel industry, and the Ag Innovation Campus in Crookston, a cutting-edge soybean crush and research facility that will enhance ways for our industry to supply the basics for new sustainable feeds, foods, fuels and fibers. These two projects underscore our forward-thinking vision. As an organization, we don’t look in the rearview mirror, and we continue to drive the soybean checkoff forward, into the fast lane. During our year back on the road, we celebrated the return of Farmfest and Big Iron. These events afford the Council a unique opportunity to meet directly with growers, learn more about their concerns and priorities and showcase checkoff projects – highlighted by Driving Soy. 2021 finally brought our 15-person board back together in-person. We also embraced the return of face-to-face engagement while also taking full advantage of the virtual resources at our disposal. Always evolving, the Council’s communications team left Greater Minnesota’s gravel roads and traveled on the information superhighway with a social media campaign directed at Northern and Southeast Asia buyers to highlight the low foreign material in northern-grown soybeans. Despite the many obstacles we faced this past year, the Council put the pedal to the metal all year long, and never veered from our path. We stayed the course, and on behalf of the Council, I thank you for sharing the ride with us.
Joe Serbus Chair, Minnesota Soybean Research & Promotion Council
7
DRG SOY
8
The Minnesota Soybean Research & Promotion Council supports 44 organized soybean counties that are designed to promote soybeans and value-added products. During summer 2021, Council leaders were determined to “tread new ground” by connecting the county soybean boards with their communities by “Driving Soy.” Driving Soy was a statewide promotion in which the county boards donated a set of Goodyear’s soy-based tires to their local sheriff’s departments. This campaign afforded farmers a unique opportunity to promote new uses in soybeans, while paying it forward in their communities.
Over the course of several months, Driving Soy helped raise the Council’s brand and profile – both regionally and nationally – to the tune of 68 million media impressions across dozens of earned media outlets throughout the state in 2021. In total, the Council’s communications team issued 45 press releases related to the campaign, and published nine stories on mnsoybean.org. Campaign ran from May – August 2021
60 sets of Goodyear Eagle Enforcer tires donated across the state 2 sets of Goodyear Assurance WeatherReady tires given away at Farmfest and Big Iron
Story placements in Minnesota media: 38
About one bushel of soybeans is used to create a set of Goodyear's soy-based tires.
MSR&PC hosted a media event at the farm of Sheriff’s Deputy and farmer Derek Estrem
1 set of tires given away through a “nominate a nonprofit” promotion Counties utilized radio ads, giveaways, social media, direct mail, billboards, press releases and more to promote the campaign
Facebook 361,245 Impressions 27,152 Engagements
Google 106,815 Impressions 9
DRILLING
DOWN We tip our cap to the following sponsors: Bayer, Advanced Grain Handling Systems, R & J Broadcasting, Worthington Tax and Business Services and Cory Bennett and A.J. Duerr.
10
Minnesota is the Land of 10,000 lakes – well, 14,444 lakes to be exact. With that in mind, it’s no surprise Minnesotans spend lots of time camping and fishing throughout our state’s four seasons. These pastimes presented a unique opportunity for the Council. To drive home the promotion of soy-based products, MSR&PC put out a line to sponsor the Minnesota Soybean Growers Association’s Outdoor Getaway 8 by 18-foot fish house, which duals as a camper in the summer months.
The all-seasons model – which was made with soy-based spray insulation, furniture cushions, paint, cabinetry and flooring – debuted at the 2021 Farmfest as part of the Council’s mission to advance sustainable, value-added soybean products.
Producers across the state entered into the fish house raffle by purchasing a $100 raffle ticket and learned about the many uses of soybean oil.
The fish house made its final stop at MN AG EXPO, where it placed as the marquee attraction of Minnesota Soybean’s Soy Wonderland booth.
The lucky winner, Travis Roberts of Wells, reeled-in the fish house, which also features TV hookups, a tandem axle hydraulic lift and more.
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to the Metro to tout sel bus! MSR&PC took die bio e th rd oa ab All n health, air quality l already plays on huma se die bio fits ne be e th and emissions. tting carbon and biodiesel is already cu at th te ica un mm co To apped 46 biodiesel right now. MSR&PC wr re, he ht rig s ion iss em a 16-week period. Transit’s total fleet) for tro Me of % (15 s se bu
Through a superhero theme cam paign, biodiesel was portrayed as a heroic figure with many sup erpowers, including erasing carbon and cleaning the air. To support the bus wraps, MSR&PC created the mnbiodiesel.com website and an extensive digital and traditional communications plan .
B
Results: -28 million
impression s from bus wraps -350,000 on line impress io n s -30,000 pre ss impressio ns
C
B 13
LUV
THE STATE O
TEEING OFF
The soybean county boards jumped right in to 2021 by getting creative with their soybean promotions. From annual meetings and plot days, to getting involved with their sheriffs department, 4-H and a Northwoods League baseball team, the boards certainly made an impact across the state. 14
SOY
OF SOYBEANS
THE BOTTOM LINE
To learn more about these promotional projects and events, scan the QR code. 15
Kittson 6
Roseau 2
Lake of the
Woods
Marshall 1 Beltrami
Penningto
n
Cook
Koochiching
Red Lake
Lake
Clearwater
2
Polk Norman
Mahnomen
St. Louis Itaska
Hubbard
Clay
Becker
Wilkin
Otter Tail
1
Cass
Wadena
Aitkin
Crow Wing
Carlton
Pine
Grant
Morrison
Douglas
1
Mille Lacs
Todd
Traverse Pope
1
Stearns 1
4
Kanabec
Benton Isanti
Swift
2
1
Lyon
1
1
Reville
Mcleod
7
7
Rock
3
Nobles
5
1
Redwood
Jackson
4
5
Watonwan
Martin
5
1
Goodhue
Nicollet
Cottonwood
Dakota Scott
1
Sibley
4
Murray
Carver
6
Brown Pipestone
Ramsey
Hennepin
Washington
6
Wright
Meeker
1
Yellow Medicine Lincoln
Anoka
Kandiyohi
Chippewa
Lac qui Parle
Chisago
Big Stone
Stevens
Le Suer
Rice
2
3
Blue Earth
5
Faribault
1
Wabasha
2
Waseca
Steele
3
Freeborn
Dodge
2
Mower
Omstead
Winona
3
Fillmore
Houston
1
8
**The numbers indicated on the map represent the number of farmers who participated in our survey in that county 16
MSR&PC developed the Grower-Input Survey to better understand the broad scope of production and agronomic challenges across the state. For each completed survey, MSR&PC donated one pound of fresh meat to the food shelf, Second Harvest Heartland.Through promotional efforts, 139 farmers completed the survey.
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THE
“BLUE” HIGHWAY
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Plasma Blue is owned by MSR&PC and invests checkoff resources into continuing to improve this revolutionary new technology that creates biodiesel at a dramatically lower production cost while using a different energy source. Plasma Blue’s unique reactor technology can be used in the transesterification process within a biodiesel plant. By using readily available standard electricity, this technology provides operational cost savings while more fully converting oils and reagents used in the biodiesel production process. The technology, sparked with checkoff dollars and University research, aims to reduce the price of biodiesel production costs, creating a marketplace where small biodiesel plants can remain viable. Plasma Blue will allow the biofuels industry to better utilize renewable sources of energy – such as wind and solar – in the conversion of sustainably grown feedstocks to oil. Plasma technology can be conducted at room temperature, which decreases the use of natural gas and allows for potentially cleaner electricity to be used. Plasma Blue’s technology may be able to reduce a plant’s carbon index score in the range of 0.12 to 0.55 g CO2e/MJ, potentially equating to as much as 5 to 8 cents per-gallon savings. In 2021, Plasma Blue’s technology was tested and utilized in both Michigan and Iowa biodiesel facilities, proving the overall benefits on a larger production scale. The technology, along with its economic and environmental benefits, were also highlighted in front of local, state and national government leaders, including Sen. Tina Smith, at MSR&PC’s Mankato headquarters. 19
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During harvest 2021, Council staff hit the highway. Utilizing a boots-on-the-ground approach with the regional program managers and Council staff, 75 coolers were packed and distributed throughout Minnesota by having Council staff visit with a farmer anytime they were spotted in a combine, tractor or semi while harvesting a field.
COOL BEANS
Each branded cooler contained snacks, soft drinks, an ice pack, a safety vest, soy-based chap stick, informational card about MSR&PC and the Minnesota Soybean Growers Association (MSGA), and a personalized thank you card along with information on the MN Rural Helpline.
Thank a Farmer
MSR&PC CEO Tom Slunecka and MSGA Executive Director Joe Smentek both participated by dropping off coolers to farmers working in the field. By utilizing executive level staff, this boots on the ground approach also gave an opportunity for the Council’s Regional Project Managers – the country representative staff – to engage with farmers and introduce themselves.
Starting a CONVERSATION A single Facebook post received more than 4,000 impressions and 1,200 engagements. MSR&PC Regional Project Managers used their work Twitter accounts to promote the coolers in addition to our main social media channels. An article was also published in our weekly Minneline newsletter, which is distributed to more than 4,000 readers. The Oct. 8 edition of Minneline received an open rate of 31%, well above the industry average.
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FROM THE GROUND UP
Future Home of
22
The Ag Innovation Campus is a one-of-a-kind facility that shows what can be accomplished when farmer-leaders, researchers and entrepreneurs share a collective vision to add value to our commodities. Construction formally began on the AIC in summer 2021 and wrapped up in the fall. Thanks to checkoff resources – the Council is a founding partner of the AIC – this crush facility aims to drive agriculture straight into the future.
AIC CRUSHING FACTS 67,000-square foot facility in Crookston, Minnesota Mechanical Crush – No Hexane Will produce 5% fat to full fat meals, oils, hulls 3 independent crushing lines with the ability to segregate incoming oil seeds Quantities starting at 2 tons, with a maximum production total of 240 tons/per day Crushing 62,400 tons of soybeans per year Will operate approximately 324 days Ability to segregate oil, meal and hulls from specialty runs Food grade facility
THE PATH AHEAD
The Ag Innovation Campus will feature 10 research bays available to rent for the research and commercialization of new products. The second phase of the AIC will continue in spring 2022, with production expected to begin in 2022.
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WEWANTSOY
24
Promoting soybeans and soybean quality abroad is a large focus area for MSR&PC. With international travel keeping us on the ground, promoting Minnesota soybeans abroad looked just a little bit different in 2021. MSR&PC took to social media to digitally target soybean processors, buyers and traders in China, Japan and South Korea. The message: Minnesota soybean farmers produce clean beans, well below the current foreign material (FM) threshold for export. With more than 820,000 impressions and 4,000 link clicks to learn more about current production and storage practices farmers take to reduce FM – many of which came from top soybean processing regions in their respective countries – this unique approach allowed soybean farmers to reach the intended audience without ever leaving the state. Guangdong 25,793 Yunnan 15,489 Shanghai 13,025 Gyeonggi-do 7,072 Beijing 5,440 Zhejiang 3,904 Fujian 3,680 Jiangsu
3,360 Jeollanam-do 3,040 Seoul 2,848 Gyeongsangnam-do 2,816 Gyeongsangbuk-do 2,816
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The Next Steps
After a year in the fast lane, the Minnesota Soybean Research & Promotion Council team won’t be headed toward any exit ramps in 2022. We’re paving the way and keeping checkoff investments on the right track as we accelerate toward improving farmer-profitability in the year ahead. The Minnesota Soybean team always has our eyes focused on the road ahead. In 2022, we’re MSR&PC CEO Tom Slunecka Stepping Up and promoting the latest checkoff advancements. As a companion piece to our nationally recognized Driving Soy campaign, we’re launching a campaign this summer that mobilizes our county boards board to promote Skechers’ GO sneakers, which feature Goodyear-developed rubber technology containing a special polymer including sustainable soybean oil. The campaign will also inspire our grassroots county organizations to give thanks to frontline health care workers who sacrifice so much to help keep us safe. This promotion is also the perfect place to show consumers that agriculture is here to not only provide foods and fuel, but value-added products that impact every walk of life – from farm to frontline. We’re ready to take further strides in the year ahead. The Ag Innovation Campus in Crookston is primed to break more ground in 2022. We foresee the first phase of construction on this cutting-edge crush and research facility will be completed by year’s end, with production soon to follow. After a two-year hiatus, we anticipate we’ll resume hosting international trade teams this growing season, a key step in continuing to build relationships with our trading partners around the globe. We also look forward to sharing a peer-reviewed, National Institute of Health study that highlights the health benefits of another promising checkoff project, TruSoya high oleic soybean oil. We are living in interesting times in agriculture. Over the course of a long career in this industry – including a decade at Minnesota Soybean! – I’ve learned one lesson time and time again: Change is the only constant. In the coming year, marketing around soybeans will begin to change with the development of so many new crush plants. The dramatic increase in capacity to crush soybeans – more than a dozen crush plants are projected to be built across the country – will start to alter our focus from marketing whole beans to marketing soybean meal. In the face of so much change and market turbulence, the importance of the soybean checkoff has never been greater. The stakes are getting higher and we need strong leadership willing to do what’s necessary to increase on-farm profitability by understanding more and more of what these ever-expanding markets are going to require of our farmers. Fortunately, the Council is ready to rise to the challenge. Our farmer-led board is chock full of seasoned, passionate directors who are charged with asking the tough questions necessary to ensure soybean checkoff resources are invested wisely and boosting your bottom line. As part of preparing for a new day in a griculture, Minnesota Soybean is moving to a new home this year, just off Highway 14 in Mankato. This building will have limitless potential as a launching pad for creativity; a site for our farmer-leaders to gather for board meetings and brainstorming sessions; and a premier location for agriculture industry leaders to hold educational demonstrations and product showcases. On behalf of Minnesota Soybean, thank you for your support of the soybean checkoff. We’ll see you around the bend in 2022!
Tom Slunecka, CEO, Minnesota Soybean Research & Promotion Council
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