Two ND farmers appointed to STC board

By By DALE HILDEBRANT, Farm & Ranch Guide
Thursday, December 27, 2007 9:04 AM CST

Two North Dakota farmers, Dennis Feiken of LaMoure, and Scott Gauslow of Colfax, have been named to the recently established Soy Transportation Coalition Board of Directors.

The Soy Transportation Coalition (STC) is an organization established by the North Dakota Soybean Council and six other state soybean organizations, the American Soybean Association, United Soybean Board, National Grain and Feed Association and the National Oilseed Processors Association.

The main goal of the group is to position the soybean industry to benefit from a transportation system that delivers cost effective, reliable and competitive service to the soybean industry.

During a meeting held earlier in December in Chicago, the 13 member board elected Feiken to serve as vice-chair of the new organization.

“I am honored to have been nominated and elected to serve as the first vice chair of the Soy Transportation Coalition,” Feiken said. “The organization exists to help improve the transportation system on behalf of soybean farmers, not only in North Dakota, but across the country. This is an issue of growing importance to the soybean industry, and I’m looking forward to working toward tangible solutions to these challenges.”

Feiken and his wife, Tammy, operate a soybean and wheat farm. He is a member of the N.D. Soybean Council and serves as vice chair of that organization as well. He is also active in the N.D. Farm Bureau and has served on the NDFB board of directors.

Gauslow’s farm dates back to 1887, and he and his family currently grow soybeans, corn, spring wheat and sunflower. He is a member of the board of directors of the ND Soybean Council and is a Farm Bureau member. In addition, he serves on the Colfax city council.

“I would like to welcome Dennis and Scott to the STC board,” said Mike Steenhoek, STC executive director. “Their willingness to serve in this capacity highlights their commitment to their fellow soybean farmers. Dennis, as vice chair, together with Scott, will bring their rich experiences in production agriculture to supply capable leadership and direction to the STC board.”

Study shows widening soybean basis

In a separate announcement, the Soy Transportation Coalition announced the results of a recent study that indicates the soybean basis has “gradually, yet consistently, become wider and more negative during the last five years.”

“Soybean basis has been widening in recent years, meaning that many producers are getting a smaller share of the Chicago Board of Trade price, said Mark Newman, president of Market Solutions LLC, the organization that did the analysis of the soybean basis issue for the STC.

“Soybean prices are currently relatively high, so many producers may not notice the money they are losing to increased basis,” Newman continued. “If and when overall price levels fall, there is no reason to think that basis will narrow, especially if the widening is because transportation costs have increased.”

The STC study shows that basis levels can be as high as $1.80 per bushel for growers living in North and South Dakota, resulting in some of the lowest soybean prices paid to growers in those areas.

“This study gives us a better understanding of the negative growth in basis levels,” Steenhoek said. “The next step will be to identify the degree to which transportation inefficiencies are a contributing factor.

“Our transportation system in this country should make it easier for soybean producers to be profitable; it should not be an obstacle. Our goal is to help ensure that farmers receive as much value for their soybeans as possible,” he continued.

“Studying basis growth and the cause of it will allow the STC to focus attention on those transportation challenges that have the greatest impact on a farmer’s bottom line.”

The full study on soybean basis, including individual state data, can be accessed at the STC website: http://www.soytransportation.org.

Work by the STC is funded by soybean checkoff funds.

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