By JORDAN STRICKLER

Kentucky Correspondent

CHESTERFIELD, Mo. — In a time of dwindling exports, soybean growers are getting the chance to sell their crop in a new market. By 2020, European Union member states are required to fulfill at least 20 percent of their total energy needs with renewable sources, and at least 10 percent must be attributed directly to transport fuels – specifically, biodiesel.

To take advantage of the new policy, the U.S. Soybean Export Council (USSEC), with support from the United Soybean Board, has created a new program called the Soy Sustainability Protocol-Renewable Energy Directive (SSAP-RED). The program is a voluntary arrangement which aims to use SSAP-RED-verified soybeans as feedstock for the production of biodiesel.

“SSAP-RED is specific to U.S. beans and is an industry-based system that the U.S. soy industry was able to come together and create, something that the soy industry as a whole can commit to,” says Rosalind Leeck, senior director of Market Access for USSEC.

“It is a great opportunity for the U.S. soybean industry to increase our market share in Europe and to be a little more of a preferred supplier with this designation as meeting the requirements for the renewable energy directive.”

Farmers in several states, including Kentucky, Louisiana, Arkansas, Mississippi, Illinois, Missouri, Iowa, and Tennessee, can participate in the program. Those who are interested must deliver their soybeans to a certified elevator and sign a “self-declaration” that attests to their compliance with the requirements of the Renewable Energy Directive (RED), as well as the application of “Good Agricultural Practices.”

RED sustainability requirements restrict cultivation of biofuel feedstock from land that has been converted, since 2008, from any of three protected land categories: grasslands, forest, and wetlands, including peatland. It also has requirements on auditing and compliance, including an independent, third-party review.

Currently, only the White Plains, N.Y.-based company Bunge has completed all of the audits and certifications needed to begin exporting beans overseas for the program; however, Leeck expects that to change shortly.

“This is a bit of a process because in order to meet the requirements for the program, the exporter and the elevator facility have to go through an audit process and have to become certified to be able to participate in the program. Bunge was the first to go through the process and receive their certificate,” she explained.

“However, there are other companies, which are in various stages of the process, and we do expect that we will see other qualified exporters come online. Our big obstacle right now is to get the elevators through the audit process and to get the farmers to get the self-declaration.”

Eight percent of soybeans shipped to the EU are processed for soybean meal, which is used for livestock feed. The other 20 percent is turned to soybean oil, used in foodservice, food manufacturing, and industrial purposes such as biofuel and energy.

So far in 2019, the United States shipped has 260 million bushels of soybeans to the EU – an increase of 125 million compared to last year.

“Right now, we are trying to educate the farmers so that they understand that this is a good market opportunity for them in a time when we see some demand destruction from other parts of the world,” explained Leeck. “This makes Europe, which has been a very good market for us, an even more appealing market, and makes the U.S. a more appealing supplier.”

Farmers interested in participating in the SSAP-RED program or learning more should visit www.ssap-red.org