20 October 2021, Iowa: Consumer and food industry demand for healthier cooking oils continues to rise, and Pioneer® brand Plenish® high oleic soybeans offer farmers a profitable way to meet this need. In 2022, the processor-paid premiums on these specialty soybeans will significantly exceed 2021 premiums. Additionally, Pioneer is excited to announce a new agreement with Cargill that will increase the number of draw areas for Plenish soybeans in Midwest soybean states.
“Premiums are more attractive than ever for growers who plant Plenish high oleic soybeans,” said Roger Theisen, Plenish Soybeans Marketing Manager, Pioneer. “For example, if a grower typically hits 65-bushels-per-acre and can net a $0.75-cent premium on top of whatever current soybean prices are, that means nearly $50.00 more in potential profit per acre.”
Through identity-preserved contracting programs, growers of Plenish soybeans receive a processor-paid premium for growing and segregating high oleic soybeans. And more growers are capitalizing on it. According to the United Soybean Board, high oleic soybean acres are expected to grow to 1 million nationally in 2022, up from around 600,000 acres in 2021. Plenish soybeans are planted on most of those acres.
Processors and participating elevators make the delivery of Plenish soybeans as similar as possible to commodity soybeans. The 2022 supply chain for Plenish soybeans now has six contract processors with delivery locations in most of the major soybean-growing states.
- ADM – Premium is set once by the producer at any point from Aug. 13, 2021, through Aug. 31, 2022, by taking 10% of the November 2022 futures price, potentially reaching up to $1.50/bu. ADM has delivery locations in Indiana and Ohio.
- Ag Processing, Inc. (AGP) – Growers can earn a processor-paid premium of $0.75/bu for harvest delivery to a designated elevator or $0.80/bu for on-farm storage. AGP has delivery locations in Nebraska.
- Bunge – Farmers can earn a processor-paid premium of $1.15/bu for harvest delivery to a designated elevator or $1.25/bu for on-farm storage, plus an additional $3.00/acre if invoiced and contracted by Dec. 8, 2021. Bunge has delivery locations in Indiana and Ohio.
- Cargill – Farmers can earn a processor-paid premium of $0.85/bu for harvest delivery to a designated elevator or $1.00/bu for on-farm storage. Cargill has delivery locations in eastern Iowa, Illinois and southern Ohio.
- CHS – Farmers can earn a processor-paid premium of $0.85/bu for harvest delivery to a designated elevator or up to $1.30/bu depending on delivery or the buyer’s call window. CHS has delivery locations in southern Minnesota.
- Perdue AgriBusiness – Farmers can earn a processor-paid premium of $0.55/bu for harvest delivery to a designated elevator or $0.80/bu for on-farm storage, plus an additional $0.10/bu if 100% of their soybean acres are planted to Plenish soybeans. Perdue has delivery locations in Delaware, Maryland, New Jersey, New York, Pennsylvania and Virginia.
“Growers can expect to get the same elite genetics, agronomic characteristics, defensive traits and yield performance from varieties of Plenish soybeans as they would with Pioneer varieties of commodity soybeans,” Theisen said. “This is a great opportunity for growers to expand their options and differentiate their income.”