Celebrating 25 years of maximizing farmer …...through huge technological advances, ups and downs in the farm economy and a changing global market. The original farmer-leaders had

The Ohio Soybean Council (OSC) was founded in 1991 to manage the Soybean Promotion and Research Program, more commonly known as the soybean checkoff. OSC is governed by a volunteer farmer board, which directs the investments of the checkoff. The program’s primary goal is to improve soybean profitability by targeting research and development, education and promotion projects.

To learn more about the Ohio Soybean Council

and its programs to support Ohio soybean farmers,

please visit our website: SOYOHIO.ORG. 25OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

Celebrating 25 years of maximizing farmer profitability.

th

This year, the Ohio Soybean Council (OSC) celebrated its 25th anniversary. In 1991, the

Soybean Promotion and Research Program was passed as a provision of the Farm Bill,

creating the national soybean checkoff. Here in Ohio, OSC was formed to manage the

state’s portion of checkoff dollars and works to increase the profitability of Ohio soybean

farmers. This year also marked the 50th anniversary of our sister organization, the Ohio

Soybean Association (OSA), which works on the legislative priorities of its members.

To put these anniversaries in perspective, think about how much our industry has changed

in the last 25 and 50 years:

• In 1965, 2 million Ohio acres were planted with soybeans. In 2015, Ohio farmers

planted 4.9 million acres of soybeans.

• In 1965, the average production of soybeans was less than 25 bushels per acre.

In 2015, it was 50 bushels per acre.

• In 1969, Ohioan Neil Armstrong became the first person to walk on the moon. A few

months ago, Ohio farmers were riding in satellite-linked combines and uploading

yield data to a cloud.

Since their founding, these farmer-led organizations have helped support the industry

through huge technological advances, ups and downs in the farm economy and a

changing global market.

The original farmer-leaders had the foresight to set a strong foundation. They didn’t know

soybeans would become a leading feedstock for industrial products or that biodiesel

would become America’s first advanced biofuel. They didn’t know about high-oleic

soybeans or how big the Chinese market would become. They didn’t know what would

happen, but they believed it was possible.

It has been my pleasure to lead this board through this past year as we continue to make

advances and deliver on our commitment to producing a safe, healthy food supply while

ensuring the long-term profitability of the Ohio soybean industry.

Sincerely,

Terry McClure

TERRY MCCLURE

CHAIRMAN OF THE BOARD

OHIO SOYBEAN COUNCIL

OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 1

2016 FINANCIAL REVIEW

YEAR ENDED SEPTEMBER 30, 2016

ASSESSMENT RECEIPTS FROM FIRST PURCHASERS

$12,655,946LESS

ASSESSMENT RECEIPTS REMITTED TO THE UNITED SOYBEAN BOARD

$5,560,045

ASSESSMENT RECEIPTS REMITTED TO OTHER STATES

$1,198,369

NET ASSESSMENT RECEIPTS

$5,897,532

INVESTMENT INCOME

$19,693

GRANTS

$109,696

TOTAL ADDITIONS TO FUND BALANCE

$6,026,921

ADMINISTRATIVE DISBURSEMENTS

$848,288

TOTAL DEDUCTIONS FROM FUND BALANCE

$6,126,598

NET DECREASE IN CASH INVESTMENTS

$(99,677)

BEGINNING CASH INVESTMENTS

$9,938,212

ENDING CASH INVESTMENTS

$9,838,535

2 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT

TOTAL PROGRAM DISBURSEMENTS

$5,278,310

DEMAND

$1,208,919

COMMUNICATION/EDUCATION

$1,929,920

RESEARCH

$2,139,471



DEMANDDriving demand for soybeans continues to be a top priority, and we are pushing hard on multiple fronts.


TECHNOLOGY THAT COULD REVOLUTIONIZE THE MODERN AQUACULTURE INDUSTRYOhio Soybean Council (OSC) funded research partners Battelle and Kentucky State University

to develop and evaluate a patent-pending technology that could revolutionize the modern

aquaculture (fish farming) industry and is now seeking commercial partners. The technology

completely removes non-digestible carbohydrates (oligosaccharides) without compromising the

amino acidcomposition, making it easier for fish to digest. Initial testing has shown that EnzoMeal™,

an improved soybean meal, outperforms 100 percent fish meal diets. For more information on the

technology, nutritional analysis, fish studies and commercialization, please visit enzomeal.org.

WHAT’S IN A SOYBEAN?PROJECTED GLOBAL SEAFOOD CONSUMPTION

Protein (amino acids) ............................ 36%

Insoluble carbohydrates (fiber) ..........19%

Moisture ..................................................... 13%

Soluble carbohydrates .......................... 9%

Ash .............................................................. 4%

Oil ................................................................ 19%

62%

2009 2030

FARM RAISED

45%FARM RAISED

(MILLION TONS) FARM RAISED WILD CAUGHT

58.2 93.667.9 55.0

Sources: FAQSTAT (2014) // Fish to 2030 (2013)

FISH STUDIED FUTURE COMMERCIALIZATION

RAINBOW TROUT YELLOW PERCH WHITE SHRIMP CATFISH LARGEMOUTH BASS ASIAN SEA BASS ATLANTIC SALMON


OSC has invested in an on-farm critical

infrastructure program over the last year

to determine the efficacy of farmers

accessing natural gas. OSC has since made

available an Excel worksheet where farmers

can calculate costs, annual savings and the

estimated pay-off period in years if they

make the switch to natural gas.


HONG KONG, CHINA

SRI LANKA

JAPANINDIA

OSC IS BUSILY VISITINGALL PARTS OF THE WORLD,

OPENING DOORSFOR MORE SOYBEAN

DEMAND. TO HELP DRIVE DEMAND FOR SOYBEANS,OSC CONTINUES TO PARTNER WITH THE USA POULTRY AND EGG EXPORT COUNCIL

TO PROMOTE TURKEY EXPORTSTO CENTRAL AMERICA ANDCHICKEN EXPORTS TO MEXICO.

OSC PARTNERED WITH THE OHIO PORK COUNCIL

TO COMPLETE A PROCESSOR STUDY THAT FOUND OHIO TO BE A SUITABLE PLACE FOR MORE PROCESSING.

INCREASED PROCESSINGWOULD SIGNIFICANTLY INCREASE THE

DEMAND FOR PORKIN OHIO, FURTHER DRIVING DEMAND FOR SOYBEANS.

TO FURTHER INCREASE BIODIESEL USE,

OSC HAS INVESTED IN BIODIESEL PROJECTS

FOCUSED ON CONNECTING WITH RETAILERS

TO REACH FARMERS AND ENCOURAGE THEM

TO PURCHASE BIODIESEL. OSC REACHED OUT

TO SEVERAL RETAILERS AND COMMUNICATED

WITH HUNDREDS OF FARMERS ENCOURAGING

THEM TO PURCHASE BIODIESEL.


CREATE A NEW WATERBORNE

SOYBEAN OIL MODIFIED URETHANE that would have lower volatile organic compounds than current commercial products to better comply with government regulations. It would be used in

WOOD FINISHES AND COATINGS.

PROJECT 1

RESEARCHAdvancing soybean science through innovativeresearch and development creates value for Ohio soybean farmers and brings solutions to consumers.


OSC INVESTED IN TWO PROJECTS WITH REICHHOLD, A GLOBAL SUPPLIER TO THE COMPOSITE AND COATING INDUSTRY, THAT COULD REQUIRE

30-40 MILLION LBS. OF SOYBEAN OIL, WHICH IS 3-4 MILLION BU. OF SOYBEANS.

CREATE A NEW WATERBORNE

SOY-BASED ALKYD COPOLYMER LATEX COATING WITH IMPROVED STAIN BLOCKINGfor commercial and residential indoor applications.

PROJECT 2

OSC INVESTED IN RESEARCH TO DEVELOP

SOY-PKA PATENT-PENDING RESIN TECHNOLOGYTO REPLACE PETROLEUM BASED BISPHENOL ACURRENTLY USED IN FOOD AND BEVERAGE CANS.

2015 EUROPEAN COATINGSINNOVATION EVENT TOP 10INNOVATIVE TECHNOLOGIES OF THE YEAR.

2016 BIO-BASED INNOVATION AWARDSSECOND PLACE, BIO-BASED CHEMICAL

INNOVATION OF THE YEAR.

As of today, OSC has received over $900,000 in royalties from products they have developed with their research partners. The royalties collected are reinvested in scholarships and education programs in the STEM areas: science, technology, engineering and mathematics.


TWO R&D 100 AWARDS IN RECOGNITION OF TOP INNOVATIONS THAT HELP MAKE OUR ENVIRONMENT GREENER AND OUR GOAL TOWARD ENERGY REDUCTION CLOSER.


BIO-YIELD BENEFICIAL MICROBIALINOCULANT SYSTEM WINS R&D 100 GREEN TECH MERIT AWARD.Improved biologic products for agriculture address one of the most critical issues we face:

how to increase food production by 100% over the next 30 years with less available farm-

land and with less negative impact on the environment. Biologics in agriculture can be used to

decrease our dependence on synthetic chemicals and improve quality and yields of crop plants.

But these living products cannot work well if they are not viable and living at the point of use.

THE BIO-YIELD MICROBIAL INOCULANT SYSTEM IS ACTIVATED ON-FARM

to deliver the freshest and most viable biologic product in the world. This novel approach opens the

potential for commercialization of numerous beneficial microbes proven in research but never before

commercially available in a viable state.

UNIVERSITY RESEARCHWith funding from OSC, the soybean team at The Ohio State University continues to make

strides in plant, soil and water research to help Ohio soybean farmers back on the farm.

WATER QUALITY DR. ELIZABETH DAYTONDr. Libby Dayton is working to revise the Ohio Phosphorus Index. An important

aspect of that work is to re-evaluate the way various methods of fertilizer and

manure placement are scored. Ultimately, Dr. Dayton’s work will contribute to the

ongoing efforts of On-Field Ohio to revise the Ohio P Index, as well as to develop

best practices as they relate to water quality for Ohio corn and soybean growers.

Soybean researchers at OSU are in the

process of refining Ohio’s fertil izer

recommendations for soybeans. The goal

is to determine optimal economic phos-

phorus and potassium fertilization rates

for soybeans. Dr. Steve Culman and others

are also trying to identify the impact soil

fertility levels have on populations of, and

corresponding yield reductions caused

by, soybean cyst nematode, soilborne

pathogens and insect pests.

SOIL FERTILITY

DR. STEVE CULMAN

WEED MANAGEMENT

DR. MARK LOUXIN COOPERATION WITH OTHERS,

DR. LOUX HELPED PRODUCE THE

WEED CONTROL GUIDE FOROHIO, INDIANA AND ILLINOIS.

He is also continuing his work on a

project to: 1. Identify new species

of glyphosate resistant weeds.

2. Conduct research to develop

management strategies for proper

weed control.

COMMUNICATIONAND EDUCATIONOSC supports many programs to help tell the story of Ohio soybean farmers to those who are unfamiliar with agriculture, as well as to influence and educate the next generation.

12 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 13

OSC SUPPORTED THE NIGHT FOR YOUNG PROFESSIONALSAT BOTH WILMINGTON COLLEGE AND THE OHIO STATE UNIVERSITY REACHING OVER 200 STUDENTS.

REACHED OVER10,000 USERSTHROUGHGROWNEXTGEN.ORG

EDUCATION CONTINUES TO BE A PRIORITY FOR OSC, AND INVESTING IN GROW NEXT GEN HAS CERTAINLY PAID OFF.

THE TEACHERNETWORK GREW BY

31 PERCENT.

THEY COMPLETED

36 EVENTSREACHING OVER

665,000STUDENTS.

WATER QUALITYCONTINUES TO BE

A PRIORITYThe goal of this initiative is to change the conversation

about grain farmers’ role in water quality and to ensure

people understand the commitments and investments

grain farmers have made to positively impact the issue.

TO COMMUNICATE DIRECTLY WITH CONSUMERS, OSC WAS

PRESENT AT THE OHIO STATE FAIR, MEETING THOUSANDS

OF VISITORS OVER THE COURSE OF THE 12-DAY FAIR.

SATURDAY, AUGUST 6, WAS SOYBEAN DAY AND OHIO SOYBEAN

FARMERS LOCATED AT THE ENTRANCE GREETED MANY OF THE

105,000 VISITORS ENTERING THE FAIR.

THIS YEAR, OSC INVESTED IN THEDEVELOPMENT AND IMPROVEMENT OF THE

SOYBEAN REWARDS SITEdesigned to keep farmers up to date on the latest information and

data from OSU researchers. Ads were also developed informing

farmers of the latest information in research and were placed in

the Ohio Soybean News magazine. soybeanrewards.org.

Foundation Ohio Soybean Council

The foundation supports agricultural education and scientific research with an eye toward career opportunities in the soybean industry.

OHIO SOYBEANCOUNCIL FOUNDATION

THE FOUNDATION CO-SPONSORED THE

AG BIOTECH ACADEMY,DESIGNED TO HELP TEACHERS UNDERSTAND

BIOTECHNOLOGY. IT IS ESTIMATED THAT OVER

14,000 STUDENTSWILL BE IMPACTED BY THEIR TEACHERS’

PARTICIPATION IN THE ACADEMY.

OSCF awarded $5,500 IN SCHOLARSHIPS to students participating in the state and district science fairs.

OSCF AWARDED OVER$5,000 IN SCHOLARSHIPS TO THE

INVENTIONCONVENTION,A PROGRAM DESIGNED TO HELPK-8 STUDENTS FOSTER CURIOSITYAND ENGAGE IN THE INVENTION PROCESS.

OSCF AWARDED A TOTAL OF

$36,500IN SCHOLARSHIPSINCLUDING SCHOLARSHIPS FORGRADUATE AND UNDERGRADUATESTUDENTS FOR THE 2016-2017 SCHOOL YEAR.

14 | OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT OHIO SOYBEAN COUNCIL 2016 INVESTOR REPORT | 15

SOYBEANASSOCIATION

This year, the Ohio Soybean Association (OSA) is celebrating its50th anniversary of providing leadership for Ohio’s soybeanproducers in promoting effective policies and legislation to ensurea growing and profitable soybean industry.

OHIO SOYBEANASSOCIATION

ACTIVELY LOBBIED AND SUPPORTED THE

RENEWABLEFUEL STANDARDAND TAX CREDIT.

Worked diligently to decrease trade barrierswith Cuba to increase soybean exports.

LOBBIED IN SUPPORT OF THE

TRANS-PACIFICPARTNERSHIPTO KEEP TRADEOPPORTUNITIES OPEN FOR OHIO SOYBEANS.

PUSHED FOR THEPASSAGE OF THE

WATERRESOURCESDEVELOPMENT ACT, WHICH WILL FUND NECESSARY

INFRASTRUCTURE

UPGRADESVITAL TO AMERICAN LOCKS AND DAMS.

OSA HELD MEETINGS WITH NUMEROUS STATE AND NATIONAL LEGISLATORS AND VISITED

WASHINGTON, D.C.FOUR TIMES OVER THE COURSE OF THE YEAR,

LOBBYING ON BEHALF OF FARMERS.

WORKED TOGETHER WITH OTHER AGRICULTURE GROUPS TO PREVENT TAX HIKES ASSOCIATED WITH CURRENT AGRICULTURAL USE VALUE.


2016 OFFICERS

ChairmanTERRY MCCLUREDistrict 4

Vice ChairmanSTEVE REINHARDDistrict 6

TreasurerBILL BATESONDistrict 5

SecretaryGRETCHEN MOSSBARGERDistrict 14

TODD HESTERMANDistrict 1

NATHAN ECKELDistrict 2

JEFF MAGYARDistrict 3

PATRICK KNOUFFDistrict 7 BILL BAYLISSDistrict 8

BRET DAVISDistrict 9

SCOTT DENLINGERDistrict 10

CHARLIE TROXELLDistrict 11

DAVE DOTTERERDistrict 12

AMY DAVISDistrict 13

DALE PROFITEx-Officio

DAN CORCORANEx-Officio

KEITH KEMPEx-Officio

JOHN MOTTEREx-Officio

4

12

6

3

12

1413

1011

987

5

Ohio Soybean Council

918 Proprietors Road,

Suite A

Worthington, OH 43085

888-SOY-OHIO

Phone: 614-476-3100

Fax: 614-476-9576

soyohio.org

The Ohio Soybean Council (OSC) was founded in 1991 to manage the Soybean Promotion and Research Program, more commonly known as the soybean checkoff. OSC is governed by a volunteer farmer board, which directs the investments of the checkoff. The program’s primary goal is to improve soybean profitability by targeting research and development, education and promotion projects.

To learn more about the Ohio Soybean Council

and its programs to support Ohio soybean farmers,

please visit our website: SOYOHIO.ORG.

Documents

Celebrating 25 years of maximizing farmer …...through huge technological advances, ups and downs in the farm economy and a changing global market. The original farmer-leaders had