At a time when many soybean farmers are deciding which varieties to grow next year, the soybean checkoff is asking them to re-evaluate this purchasing decision in order to improve their profit potential and competitive position in the world market.

Most U.S. soybean farmers choose varieties based on yield potential. United Soybean Board (USB) in partnership with state soybean checkoff boards, the American Soybean Association (ASA) and others in the soybean industry will explain the benefits of evaluating protein and oil levels in addition to yield potential at a series of farmer meetings named Quality Counts Forum: Asian Perspectives on Protein and Oil.

"Competition for domestic and international markets grows more intense each year," says David Durham, chairman of USB and a soybean farmer from Hardin, Mo. "The only way U.S. farmers can remain competitive is if we focus on providing our customers with a high quality product, which means selecting varieties that have strong yield characteristics and high levels of protein and oil."

Recent soybean checkoff-funded studies support the need for these meetings and the new selection process. According to one of these studies, the protein and oil levels of U.S. soybeans are now on an equal playing field with cheaper, South American soybeans.

The early December meetings will take place in North Dakota, South Dakota, Nebraska, Minnesota and Iowa, states that typically produce soybeans with lower protein and oil levels. In recent decades, soybean production in these states increased significantly. Soybean production has decreased, however, in the Southeast where protein and oil levels tend to be higher. This shift in production has led to a decline in the overall quality of U.S. soybean exports while South America's soybean quality has improved.

Many soybean meal importers have already noticed a trend indicating a decline in the quality of U.S. soybeans. Some have already stopped buying or significantly reduced their U.S. purchases.

"Right now, superior shipping standards are keeping the United States in contention as a major international supplier," says a major Chinese soybean importer. "In terms of quality and cost, we have been looking toward South America, and especially Brazil."

A major Asian importer of U.S. soybeans will speak at each of the Quality Counts Forum meetings, to help raise industry and U.S. soybean farmer awareness of the need to improve the protein and oil levels of U.S. soybeans.

According to farm economists, a problem of this magnitude can only be resolved with involvement from all parts of the soybean industry. If only one part of the industry is engaged, then overall higher soybean quality can never be achieved. Durham explained that this is why representatives from all parts of the soybean industry, processors, seed companies, and others, will participate in the December meetings.

"If processors know they can count on receiving a significant amount of higher quality soybeans, that significantly improves their bottom line, they are more likely to offer a premium," says Richard Galloway, a farm economist and processing expert with Galloway & Associates. "If farmers know they will receive a premium for growing certain varieties, they'll probably grow those higher-paying varieties. And, if more farmers ask their seed dealers for soybeans with higher protein and oil content, more seed companies will incorporate these traits into the new varieties they develop. Our current situation demands these changes in all levels of the soybean industry to improve U.S. soybean quality."

Many soybean processors have already realized the need to get involved in raising the quality of U.S. soybeans. Premium programs are now in place through AGP, Cargill and Minnesota and South Dakota Soybean Processors. These programs reward farmers for planting the specific varieties that produce soybeans with higher levels of protein and oil. Details vary, so farmers are encouraged to visit their local elevator for more information.

Processor Preferred^TM, a reward program through Monsanto, identifies for farmers varieties that meet specific protein and oil requirements. Farmers can expect to receive a premium for those specific varieties that they can find at their local seed dealer. More processors are considering component incentive programs as a way to ensure higher soybean quality.

 "We need to select, plant and grow the soybeans that the world demands," explains David Durham. "Producing a higher quality product means higher levels of protein and oil. It is the one way we can compete with South America. I encourage every soybean farmer to talk to his seed dealer about varieties that have strong yields and high protein and oil content. "

USB is made up of 61 farmer-directors who oversee the investments of the soybean checkoff on behalf of all U.S. soybean farmers. As stipulated in the Soybean Promotion, Research and Consumer Information Act, USDA's Agricultural Marketing Service has oversight responsibilities for USB and the soybean checkoff.