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Fields of leaner beans earn premium pay

To meet demand for foods with less trans fat, companies offer extra money on some varieties.

By Jerry Perkins
Regiser Farm Editor

Wanted: Farmers who will plant more healthful soybeans this year. Pay: 50 to 60 cents more a bushel. Apply to Cargill Inc.

Monsanto Co. and Cargill will begin a joint recruiting campaign today to persuade farmers in Iowa and 11 other states, from Nebraska to the East Coast, to grow Monsanto's Vistive-brand low linolenic soybeans.

Soy processors need more growers to fulfill demand for soy oil with fewer trans fatty acids. Trans fat can clog arteries and increase the risk of coronary heart disease. The Vistive soybeans have less trans fatty linolenic acid than normal soybeans.

In efforts to use healthier oil, 20 states have proposed regulations restricting the use of oils high in trans fats, 25 municipalities have proposed ordinances or health codes, and two dozen school districts have proposed limiting use of trans fat ingredients or foods served to students. McDonald's, KFC, Wendy's and other restaurant chains are switching to trans-fat-free oil.

The premium adds an incentive for growers already watching soaring soybean prices. Soybean futures on the Chicago Board of Trade hit a record $15.86 last week before falling. Analysts say those prices, plus the rising cost of producing corn, will prompt farmers to plant more soybeans this year.

"We think this is a great opportunity for growers who are still making planting decisions to get a higher return per acre for the soybeans they are growing," said Eric Keller, specialty oilseeds merchant for Cargill Inc. in West Des Moines.

Keller said Cargill soybean processing plants in Des Moines, Cedar Rapids and Sioux City will process the Vistive soybeans this year.

Asoyia, a farmer-owned company based in Iowa City, is offering growers a $1.45-a-bushel premium to grow its low linolenic soybean variety.

Brett Maxwell, Asoyia's vice president of operations, said the company expects a 30 percent growth in acreage this year over last. The company did not disclose its total acreage. The company cannot keep up with the demand from the food industry, he said. "We have a strong retention rate with growers and customers," he said.

Corey Damman, who farms near Melbourne, said he raised 100 acres of Vistive soybeans on contract last year with Cargill.

Damman earned between $3,000 and $3,720 in premiums last year for the soybeans.

That came from a per-bushel bonus of 50 to 60 cents for the Vistive beans, he said. The Vistive beans yielded 60 to 62 bushels an acre, which was just as good, if not better, than the regular Roundup Ready soybeans he grew last year.

Damman said he is planning on growing at least as many Vistive acres in the upcoming season. Cargill is offering the same premium this year.

Malin Westfall, Vistive marketing manager for Monsanto, said 1.5 million acres of Vistive soybeans were grown in the United States in 2007. Iowa farmers grew the most, he said, with about 3,000 Iowa farmers raising 435,000 acres.

The Vistive brand of low linolenic soybeans has the "Roundup Ready" trait that makes it resistant to Roundup and similar herbicides. Asoyia's variety isn't genetically modified.

Monsanto and the Iowa State University Research Foundation last year settled a federal patent infringement lawsuit over Vistive. The foundation alleged that St. Louis-based Monsanto began selling the soybeans without any license from ISU. Under the settlement, ISU agreed to give Monsanto a license to sell the ISU-developed soybean.