By LINDA McGURK
Indiana Correspondent

COLUMBUS, Ind. — Ever since genetically modified (GMO) Roundup Ready soybeans were introduced in 1996, they’ve claimed a larger share of the nation’s acreage, making up 92 percent of the total soybean acres last year.

That could change this year, as strong demand for non-GMO soybeans is generating attractive premiums and more farmers are looking for ways to cut input costs.

“The demand for our non-GMO soybean seeds has doubled from last year,” said Trevor Glick, a director of the Indiana Soybean Alliance (ISA) who runs Columbus, Ind.-based L&M Glick Seed with his family. “Right now my availability (of non-GMO seeds) is running pretty tight but I think I can still find some. The last two to three years it has really expanded. It’s been a great opportunity for us.”

Despite declining commodity prices, Glick said the premiums for non-GMO soybeans have risen “dramatically” compared with last year, resulting in a greater willingness among farmers to grow them. Soybean buying facilities are offering premiums ranging anywhere from $1.30-$1.75 per bushel this year, more than twice as much as last year, Glick said.

In addition, non-GMO seeds cost significantly less than the biotech varieties, providing another incentive for farmers who don’t mind the extra work.

“All farmers are used to these soybeans, because everybody used to grow them before (19)96. They take a little more management, but the returns are significant,” Glick said.

The demand for non-GMO soybeans is mainly driven by Japan and other southeastern Asia nations, where they are used in tofu, miso, soymilk and other products. John Schillinger, founder of Schillinger Seed, Inc. and eMerge Genetics, expects the market for non-GMO soybeans to continue to grow.

“In Japan, people are very conservative and they are opposed to having any GMO soybeans in their tofu,” he said. “Here in the U.S., we have a ‘green’ trend. More young people are choosing organic food, and all the soybean varieties that we sell are eligible for organic (certification).”

Schillinger recently sold his Schillinger Seed brand to Dow AgroSciences in order to focus on eMerge Genetics, a research company dedicated exclusively to the development of non-GMO seeds. He started eMerge last fall, as he saw opportunities arise in the market for high-quality non-GMO soybeans, both in the U.S. and abroad.

The company specializes in developing high-quality beans with traits such as higher protein content, healthier oil and better taste. “Not too many companies work in this area,” Schillinger said. “We’re picking up a lot of new dealers and one reason why they come onboard is that they can’t find non-GMO beans elsewhere.”
He said premiums this year range from $1.50-$2.75 for highly specialized beans, and combined with the lower seed cost some farmers claim to make as much as $50 more per acre by growing the non-GMO beans.

“But you have to take that extra step of managing the weeds, and you have to have a bin where you can keep the (non-GMO) beans isolated,” he said. “If you have a lot of acres, it’s probably not going to be really popular.”

Schillinger added farmers like having alternatives, and some are concerned about having more than 90 percent of the soybean acres tied up in one technology. According to The Organic and Non-GMO Report, concerns about glyphosate resistance is also helping spur demand for non-GMO seeds. The Report expects non-GMO plantings to reach 10 percent of soybean acreage this year.

Emily Otto-Tice, ISA’s director of grain marketing, said most non-GMO seeds are sold by smaller or regional suppliers, although some varieties are still produced by major seed suppliers such as Pioneer and Monsanto.

“But these larger companies have concentrated efforts on biotech varieties over recent years, which has allowed smaller seed companies to take advantage or fill the void left in these markets by offering and continuing development of non-GMO varieties,” she said.

More information for farmers interested in growing non-GMO beans is available at www.soybeanpremiums.org online. The website lists premium soybean markets and links farmers, elevators and grain companies.