Farm bill provision creates "innovator incentives" for farmers

Applies to new oilseeds, like mid- and high-oleic soybeans

The long-awaited farm bill passage has paid off for farmers interested in growing new soybean traits. Those farmers still on the fence as to how these traits pencil out for their operations can now recognize "innovator incentives" thanks to the new farm bill.

The Quality Incentive Program is a provision enacted with the farm bill. It will provide incentives to farmers that will help offset costs of growing certain oilseeds. Oilseeds targeted by the bill include soybeans and other oilseeds that can help benefit public health. In the past, many farmers have been slow to include recently introduced varieties in their operations due to concerns about profitability. Through QIP, QUALISOY aims to change that.

"QUALISOY applauds this important milestone in the race to increase competitiveness of the U.S. soybean industry," said Curt Sindergard, an Iowa farmer, QUALISOY Legislative Working Group chair and American Soybean Association director. "To secure the future of the soybean industry, we must adopt new varieties our customers in the food and feed industries demand. The Quality Incentive Program gives farmers a concrete, economic incentive to do so."

QUALISOY engaged ASA to lead the process of working with legislators on QIP. Over the months, many other agricultural, public health and food organizations expressed their support, including:

--USB and the soybean checkoff;

--U.S. Canola Association;

--National Sunflower Association;

--American Heart Association;

--National Restaurant Association.

"For the food industry and consumers, the Quality Incentive Program represents a move toward better public health though new, healthier oils," Sindergard said. "For farmers, it means decreased risk and an increased ability to profit. Growing these oilseeds is an entrepreneurial venture many are unwilling to undertake without sufficient incentives, but the industry must move this way to meet demand and stay competitive."

QIP is designed to protect farmers and encourage them to try new trait-enhanced varieties. The program will apply to new varieties for four years after their introduction. The next soybean trait in the pipeline likely to apply to QIP is the increased (mid- and high-) oleic-acid trait. Asoyia, an Iowa-based soybean seed and oil company, recently introduced a soybean with oil marketed as Asoyia Mid Oleic Ultra Low Lin Oil, which has a minimum of 50 percent oleic acid and a maximum 1 percent linolenic acid. Pioneer and Monsanto are nearing commercialization of high- and mid-oleic soybeans, respectively.

Under QIP, farmers will bring their settlement sheet from their elevator or processor to the local Farm Service Agency office, where payment will be received. Two-thirds of the proposed premium that will be received by farmers will come from the processor, and one-third will be provided under QIP.

QIP language was introduced by Sen. Tom Harkin, D-IA, and Rep. Nick Lampson, D-TX.

As varieties are introduced that will carry incentives under QIP, this information will become available at www.QUALISOY.com.

QUALISOY is a collaborative effort among the soybean industry to help market the development and availability of trait-enhanced soybeans and soybean oil, reduce environmental impacts of livestock production through improved soybean meal, and improve the global competitiveness of the U.S. soybean industry. A diverse 22-member QUALISOY Board of Directors sets research priorities, evaluates existing and emerging technologies, and sets quality standards for traits, products and processes. For additional information on soybean industry efforts, QUALISOY's activities and its Board of Directors, visit www.QUALISOY.com.

6/30/08
6 Star Midwest Ag\3-B

Date: 6/24/08

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