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| Look beyond
crude protein to measure
Minnesota soybean quality |
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Look beyond
crude protein to measure
Minnesota soybean quality | |
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Ag News Wire
By Seth Naeve, University of Minnesota Extension
ST. PAUL, Minn. - Today, most soybeans are processed to separate the oil from the high-protein meal fraction. These two ‘co-products’ make the seed valuable to the end user and make the soybean a profitable crop for U.S. producers.
The protein content of the soybean impacts the protein content of the soybean meal, and end users pay a premium for high-protein meal. Because these premiums get passed down through the value chain, higher-protein soybeans command a premium at the first point of sale, the local elevator. Normally, producers don’t see this price differential because long-term variation in soybean quality is built into the local price as a part of the basis.
Occasionally, local protein levels can dip low enough that grain handlers begin docking for low-protein soybeans delivered to local elevators. This occurred in an area in south central Minnesota in the fall of 2011. There, many farmers accepted a 15-cent per bushel penalty for low-protein soybeans.
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