SoybeanSMatter

ISa Success report 2013-14

Illinois Soybean Success Rooted in History

The Illinois Soybean Association (ISA) during the last year celebrated its 50th anniversary, along with 100 years of soybean production in Illinois. Throughout the year, I was reminded of efforts that led to decades of success, as well as saw the vision that will carry us into the next 50 years.

Illinois may well be the top soybean-producing state two years in a row. USDA projected in 2014 that Illinois soybean farmers produced a record 547.7 million bushels with an average 56-bushel-per-acre yield. We’ve come a long way in boosting the state’s production, and are on the road to meeting objectives the ISA board of directors has established.

ISA’s goal is to achieve maximum profitability and global competitive positioning for Illinois soybean producers. The targeted result is utilization of 600 million bushels of Illinois soybeans by 2020. I am confident we can reach that goal in the next few years.

Illinois farmers are gifted with the location, land and climate to grow enough soybeans to meet the demand of domestic and international markets, and we have the leadership to get there. As we look toward the next 50 years, I believe we have the projects and programs in place to succeed. I am excited for what the future holds for Illinois soybean farmers.

Bill Raben, ISA Chairman

Future Success Requires Resilient Leaders

What does leadership mean to you and what does leadership mean to those around you? As someone who has been in leadership positions for more than 30 years, I would think the answer must be fairly straightforward. But with thousands of studies and books published on the topic of leadership, it seems there are an equal number of interpretations.

History is filled with individuals and organizations that have been characterized as leaders. Some relate to leadership as a process of influence where one person or entity can enlist the aid and support of others in the accomplishment of a common task or goal. We also find various forms of leadership. One such form is “resilient leadership,” which is the ability to respond constructively to hardships, whether a stream of ongoing little ones or periodic significant ones.

We all are aware the soybean industry may be entering a period of hardship, and as such it is critically important to have resilient leadership at the local, state and global levels. ISA continually is looking at organizational learning, strategic change and innovation to fill that need. By adapting and adjusting to changing circumstances, having the right people with the right mindset, and keeping people in leadership roles, we can better serve Illinois soybean farmers.

Whatever definition of leadership you subscribe to, know that sound leadership matters to the organization and people you work with, to your friends and family, and to others who will get to know you. Leadership matters. As colleague Frances Frei conveyed to me, “Leadership is about making others better as a result of your presence and afterwards in your absence.”

Craig Ratacjzyk, ISA CEO

LeaderShIp MatterS

MatterSanIMaL agrIcuLture

beyond providing high-quality, local

soybean protein for animals, ISa works

to protect its top soybean customer so

livestock producers might expand and be

profitable in Illinois.

ISA relaunched its Animal Agriculture News weekly electronic newsletter to reinforce commitment to Illinois soybean’s No. 1 customers, strengthen relationships within the animal ag industry and demonstrate ISA’s leadership as an industry resource.

www.ilsoy.org

funded by the Illinois soybean checkoff

Through speaking opportunities and local farm tours, ISA leaders highlighted the value of animal agriculture to influential community members in 10 target counties.

An advertorial about the economic value of animal agriculture and processing

reached more than 350,000 Illinois residents through newspapers. Eight local

papers carried congratulations ads for new local livestock

barns. ISA highlighted animal agriculture through

sponsorship of 32 county events on nine Illinois radio

stations and networks.

ISA partnered to increase U.S. pork and poultry exports through the U.S. Meat Export Federation (USMEF) and the U.S.A. Poultry and Egg Export Council (USAPEEC). Export data show exports to specific countries ISA supports are growing. Since 2008, combined pork exports to Mexico, Central and South America, China and the Dominican Republic have grown nearly 40 percent. During the same period, total poultry exports to Mexico, South America, the Middle East, South Korea and Cuba have increased more than 56 percent.

The Illinois soybean checkoff continued to fund technical environmental support to help pork producers comply with new and existing regulations. Engineering consultant Ted Funk has visited 17 Illinois farms since the service started in 2013, making sure producers meet regulations and take advantage of the unique advantages Illinois offers livestock production, including abundant feed supplies.

ISA’s Monetizing Manure project built awareness and educated farmers about the benefits of adding livestock, including the value of manure and income for the next generation to farm. ISA used a targeted media campaign and local outreach to increase awareness of the benefits in targeted counties. The project drew recognition from the livestock industry and young farmers. ISA also created a livestock checklist brochure with resources and steps for adding livestock.

ISA hosted trade teams from 25 countries in 2014, represented by 351 individuals.

MatterStranSportatIon reliable transportation

infrastructure is critically important to soybean production. access to multiple transportation modes in Illinois provides significant advantages for farmers reaching markets, but crumbling infrastructure harms competitiveness and increases costs. ISa worked in 2013-14 to make efficient use of the infrastructure and find ways to optimize opportunities.

ISA shared practical research findings at the Illinois Association of County Engineers annual meeting. The goal was to showcase the prioritization of road and bridge projects in Peoria County. The presentation helped other county engineers from around the state understand how important rural infrastructure is to the broader community.

ISA joined with the United Soybean Board to produce

“Get Pumped Up” biodiesel decals. Four hundred

decals were delivered to four fleets in Illinois,

and can be seen on trucks, school and city

buses, maintenance and other biodiesel-

powered vehicles.

www.ilsoy.org

funded by the Illinois soybean checkoff

ISA Pushes for Funding Alternatives to Improve Waterways

ISA has played a crucial role in gaining acceptance and understanding of the value Public Private Partnership Pilot Programs (P5) could offer inland waterways infrastructure improvements. ISA addressed the need for resources to support lock and dam maintenance with numerous Illinois departments and agencies. ISA also expanded discussions and participation of other Illinois farm groups to increase awareness of the need for alternative funding to improve Illinois waterways.

“Transportation toolkits” landed in the mailboxes of 1,100 infrastructure authorities, legislators, county engineers and other stakeholders across Illinois. The mailing outlined ISA’s transportation program and Illinois infrastructure statistics, and included the checkoff-supported “Transportation 101” presentation and “Let’s Find a Way” video.

ISA partnered with Dire States to highlight Illinois’ aging infrastructure during a media event in DeKalb County. The event generated nine print and 26 online articles, one TV segment, four radio segments, Facebook and Twitter mentions and a YouTube video.

ISA shared with more than 2,000 participants biodiesel facts and trivia at the Midwest Petroleum and Convenience Store Tradeshow (MPACT) in Indianapolis.

TRANSPORTATION IN ILLINOIS

MatterSyIeLd, coMpoSItIon & profItabILIty

production strategies rooted in management

and innovation enhance soybean

yield, composition and profitability. ISa invests checkoff funds in areas that help farmers boost

production value.

ISA’s 2014 Soybean College, sponsored by Farm Journal, was the best attended yet, with nearly 200 participants. The one-day annual summer event was held near Heyworth, Ill. Due to growing popularity, two Soybean Summits were held in 2014 in Effingham and Peoria. About 240 attended in Effingham and 220 in Peoria, up 10 percent from 2013.

www.ilsoy.org

funded by the Illinois soybean checkoff

For the first time, an Illinois soybean farmer officially broke the 100-bushel yield barrier in 2014. Dan Arkels, soybean farmer from Peru, Ill., documented a 104-bushel-per-acre yield in ISA’s Yield Challenge Program’s 100 Bushel Challenge.

ISA offered eight scholarships worth $4,000 each to 2014-15 college juniors majoring in crop sciences at three of the state’s four ag universities: Southern Illinois University Carbondale (SIUC), University of Illinois (U of I) and Western Illinois University (WIU).

ILSoyAdvisor Becomes Popular Online Resource

ILSoyAdvisor.com, ISA’s checkoff-supported soybean management blog, debuted in March 2014. Within about six months, more than 240 blog articles had been published, targeted at helping farmers improve production. The site averages approximately 2,000 visitors per month.

Compositional quality sampling continued for the third year. In addition to elevators, farmers from every county provided samples to help ISA analyze protein and oil levels.

Farmers Learn from Sustainable Show and Tell

More than 50 Illinois farmers and industry representatives attended the 2014 Sustainability Showcase Event at the Roy Wendte farm near Altamont, Ill. Activities covered soil health, cover cropping, precision planting and improved fertility, and conservation programs. The Wendte family shared the farming practices they use to enhance and protect natural resources.

freedom to operate encompasses

everything that affects your ability to farm.

ISa in 2013-14 focused on increasing the

value of sustainable soybean production

practices, protecting current markets,

opening new markets and advocating for

equitable public policies and freedom to

operate.

ISA donated soy crayons and children’s soybean farming books to support ag literacy and build

relationships with 22 key state legislators in the Chicago area. ISA donated more than 1,000 books to 72 libraries, attracting the attention

of Mayor Rahm Emanuel. ISA also distributed 14,000 boxes of crayons to more than 70

children’s programs.

MatterS

freedoM to operate

www.ilsoy.org

funded by the Illinois soybean checkoff

llinois Farm Families’ (IFF) third class of Chicago-area moms toured farms and talked about animal welfare, GMOs, antibiotics and hormones. Moms’ concerns about GMO soybean and corn use dropped from 69 percent before the planting tour to 31 percent afterward. A promotion with Ultra Foods generated a 40 percent increase in “Likes” on the IFF Facebook page and increased WatchUsGrow.org traffic by 415 percent.

ISA’s Pod to Plate website, www.podtoplate.org, offered high quality, up-to-date lesson plans, statistics, activities and videos for use in classrooms. Resources also were used to educate children at such activities as “Farm to Food” held at the Lincoln Park Zoo in Chicago. ISA provided resources to 95 Illinois county ag literacy coordinators and FFA chapters, as well as presented information about ISA, the soybean industry and uses and resource materials to more than 200 K-12 teachers through Summer Agriculture Institutes.

ISA partnered with a variety of organizations to help define sustainability and educate farmers about ways to save soil and water, save and produce energy and address conservation challenges. Partners include Council on Best Management Practices, Nature Conservancy, American Farmland Trust and Natural Resources Conservation Service.

Corporate Partnerships Continue to Expand

ISA appreciates the willingness of corporate partners to invest their resources in 2013-14:

MatterSorganIzatIonaLexceLLence

through organizational excellence programs, ISa continues to build

support and recognition of ISa efforts, as well as increase

the organization’s leadership, influence

and reach.

ISG coordinated a successful second annual Biotechnology Round Table in Washington, D.C. to build awareness around the need and urgency for an international, science-based, biotech approval process. The event was sponsored by the following:

• Illinois Soybean Checkoff• Monsanto• DuPont Pioneer• FLM+• New York Corn & Soybean Growers Association• U.S. Soybean Export Council• Indiana Soybean Alliance• National Association of Wheat Growers• Indiana Corn Marketing Council• National Corn Growers Association• Dow AgroSciences• Ohio Soybean Council

ExecutiveADMNovozymes BioAg

PrincipalBeck’s HybridsCargillDow AgroSciencesDuPont Pioneer

CoreBASFBungeMonsanto

AssociateConsolidated Grain & Barge Co.

AffiliateFS GrowmarkRumbold & KuhnSyngenta

SupportABMAkron ServicesBayer CropScienceBecker UnderwoodBig River Resources LLCCrop Production ServicesFHR FarmsHeads Up Plant ProtectantStoller USAThe Andersons Inc.URSA Farmers CoopWinfield

www.ilsoy.org

funded by checkoff

and membership dollars

ISA’s winter survey results found that:

• More farmers trust ISA to be an impartial source of soy related information.

• For more farmers, ISA is a valued go-to source for soybean information.

ISA communications efforts earned peer recognition from the American Ag Editors Association and National AgriMarketing Association. ISA increased its social media presence, raising awareness of ISA programs, and recorded media coverage that included 752 pickups, and nearly 530 million impressions from traditional print and online media.

ISA invited industry leaders to two Soy 2020 meetings to talk about current topics in agriculture. Discussions in 2013-14 focused on state cover crop initiatives and new efforts and regulations to improve nutrient management in Illinois.

The Farm Progress Show in 2013 was the backdrop for kicking off ISA’s 50th anniversary. The yearlong celebration ended in July 2014 with a look back at successes.

Levels of familiarity with Illinois Field & Bean increased, with 26% either “very” or “extremely” familiar, compared with 19% in 2013. Those “somewhat familiar” held steady (47%), and those “not at all familiar” dropped from 36% to 26%.

• Embracing the Past.

• Envisioning the Future.

Illinois Field & BeanA PUBLICATION OF THE ILLINOIS SOYBEAN ASSOCIATION November 2013

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Celebrating Generations of Illinois Soybean History

Special Issue

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IFB_Nov13.indd 1 11/27/2013 10:59:09 AM

MatterSMeMberShIp

Illinois Soybean growers (ISg) is a grassroots organization that invests member dues in supporting policies and regulations that can enhance soybean production and profitability. Soybean checkoff dollars cannot be used to fund legislative efforts.

www.ilsoygrowers.com

funded by membership dollars

ISG supported the Water Resource Reform and Development Act (WRRDA) approved by Congress as a positive step toward helping the U.S. inland waterway system remain competitive for U.S. soybean and other ag exports.

ISG, as part of the Illinois Cuba Working Group (ICWG), continued to try and advance the U.S.-Cuba relationship. ISG believes both the U.S. and Cuba can benefit with an increased exchange of ideas, knowledge, capital and credit. The ISG has formed strategic relationships in both nations to facilitate expanded Illinois agri-food exports to Cuba.

Voice for Soy continued to make advocacy easy. When pending legislation affected Illinois agriculture, lawmakers heard from Illinois soybean farmers. Voice for Soy armed farmers with information on current legislative issues and the ability to take action.

ISG monitored the U.S. Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers proposed new rule to further define protection for streams and wetlands under the Clean Water Act (CWA). The Waters of the United States (WOTUS) could limit economic growth if permits are needed to make changes.

ISG submitted comments regarding the EPA’s Renewable Fuel Standard (RFS) Required Volume Obligation (RVO). ISG expressed concern the proposal would cut biodiesel production over the next two years and reduce the total Advanced Biofuel requirement.

Outreach events with county soybean clubs in Peoria and DeKalb were held and well attended. A new “Raise Your Voice” membership video shared with farmers the value of joining Illinois Soybean Growers.

Illinois soybean farmers worked for farm bill passage. The bill includes a flexible farm safety net with a choice between price-based and revenue-based risk management tools. ISG supported a revenue program to cover price and yield losses and a price support program that would allow optional purchase of insurance coverage.

financials

www.ilsoy.org

funded by the Illinois soybean checkoff

STATEMENT OF FINANCIAL POSITION

August 31, 2014, and 2013

ASSETS 2014 2013

Current Assets

Cash and cash equivalents $ 217,998 $ 180,457

Short-term investments 12,333,609 9,328,517

Accounts receivable

Related party 66,225 24,716

Other 18,602 62,384

Accrued interest receivable 546 541

Prepaid expenses 27,076 28,471

Total current assets $ 12,664,056 $ 9,625,086

Property & Equipment

Land $ 239,015 $ 239,015

Building and building improvements 1,195,697 1,155,103

Office furniture and equipment 780,662 668,993

Vehicles 139,087 139,087

$ 2,354,461 $ 2,202,198

Less accumulated depreciation 850,167 708,369

$ 1,504,294 $ 1,493,829

$ 14,168,350 $11,118,915

LIABILITIES AND NET ASSETS

Current Liabilities

Funding payable $ 1,890,627 $ 2,206,102

Expenses accrued and payable 587,576 1,251,158

Due to related party 177,035 181,243

Due to United Soybean Board 33,348 361,057

Funds held in trust 58,184 58,179

Total current liabilities $ 2,746,770 $ 4,057,739

Long-Term Liabilities

Accrued post-retirement benefits $ 594,526 $ 482,448

Net Assets

Unrestricted — undesignated $ 8,327,054 $ 6,578,728

Unrestricted — board designated reserve 2,500,000 –

Total net assets $ 10,827,054 $ 6,578,728

$ 14,168,350 $11,118,915

STATEMENT OF ACTIvITIES

Years Ended August 31, 2014, and 2013

CHANGES IN UNRESTRICTED NET ASSETS 2014 2013

Operating revenue and other support:

Checkoff receipts from first purchasers $ 32,005,180 $ 27,969,916

Checkoff receipts from other soybean boards 2,111,318 1,547,285

Less: National checkoff to United Soybean Board 16,266,048 13,975,715

Checkoff to other soybean boards 1,782,158 1,604,165

Total checkoff receipts $ 16,068,292 $ 13,937,321

Less collection expenses 54,725 56,731

Net checkoff receipts $ 16,013,567 $ 13,880,590

USB grant funds and sponsorships $ 43,319 $ 86,523

Investment return 6,025 6,487

Miscellaneous income and sponsorships 35,923 92,904

Total other revenue $ 85,267 $ 185,914

TOTAL UNRESTRICTED OPERATING

REvENUE AND OTHER SUPPORT $ 16,098,834 $ 14,066,504

Operating expenses:

Production funding $ 4,849,995 $ 5,775,717

Marketing funding 5,108,857 5,310,641

Executive funding 2,140,625 1,098,010

Management and administrative expenses 134,903 103,995

Prior year project (write-offs) expenses (383,872) (658,365)

Total expenses $ 11,850,508 $ 11,629,998

Increase in net assets $ 4,248,326 $ 2,436,506

Net assets at beginning of year 6,578,728 4,142,222

NET ASSETS AT END OF YEAR $10,827,054 $ 6,578,728

District 1

Paul Rasmussen Genoa, IL

District 2

Duane Dahlman Marengo, IL

District 3

John Longley Aledo, IL

District 4

Sharon Covert Tiskilwa, IL

District 5

Stan Born Dunlap, IL

District 6

Rob Shaffer El Paso, IL

District 7

Mike Marron Fithian, IL

District 8

Dale Asher Sutter, IL

District 9

Carrie Winkelmann Tallula, IL

District 10

Jered Hooker Clinton, IL

District 11

Doug Schroeder Mahomet, IL

District 12

Roberta Simpson-Dolbeare Nebo, IL

District 13

Gary Berg St. Elmo, IL

District 14

Donald E. Guinnip Marshall, IL

District 15

Daryl Cates Columbia, IL

District 16

Tim Scates Carmi, IL

District 17

David Droste Nashville, IL

District 18

Bill Raben Ridgway, IL

At-Large

Jeff Lynn Oakford, IL

At-Large

Lynn Rohrscheib Fairmount, IL

At-Large

Austin Rincker Moweaqua, IL

At-Large

Jenny Mennenga Le Roy, IL

At-Large

C. W. Gaffner Greenville, IL

At-Large

John Hagenbuch Utica, IL

ISa directors

www.ilsoy.org

funded by checkoff

and membership dollars