TH
4 NATTO SUMMIT
FUTURE OF NON-GMO NATTO
SOYBEAN PRODUCTION
November 2022

SPECIALTY SOYA AND GRAINS ALLIANCE

Agenda• Industry changes• Production challenges• Crop Insurance effects• Producer attitude

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Industry Changes

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Grain Handling and Crush Plant Expansion for 2022 – 2024

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What does this mean for soybean production?
• Demand will be strong for acres….Industry projection is toneed 20% more soybeans planted by 2024. All GMO.
Ex.: North Dakota….2 new facilities means 50% ofproduction will move to crushing facilities. Can expect
higher cash prices (tighter basis) compared to CBoT mkt.
• Can large grain handling facilities survive?
• Tightening crop rotations….corn & soybeans acrossMidwest?
• Farmers always have freedom to choose!
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Production Challenges

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Weed Control• No. 1 challenge for producers. Old herbicide
chemistry means minimal choices. No
longer effective and weed resistancecontinues to grow. No new herbicide
chemistry available.
• Pre-emergence herbicides are mosteffective, but must have rain within 24-36
hours to insure control.
• Must still apply post-emergent herbicides
prior to plant flowering & hope for good
control environment• Smaller natto plant canopy allows later
season weed emergence• Weeds rob yield potential -- farmers do NOT
like weeds and pressure from landowners
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Weed Control – New Technologies•••••••••

John Deere See & Spray Ultimate Sprayer
Autonomous sprayers – Swarm Farm & Monarch
Carbon Robotics -- Laser technology
Verdant Robotics – Laser technology
Nexus – Farm Forward – Pulling weeds
University & other private industry efforts
DronesKate Warpeha – National Science Foundation
Grand Farm – global innovation platform

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Grand Farm➔➔

Grand Farm Research and Education Initiative (Grand Farm), isa North Dakota organization facilitating collaboration andresearch into agriculture technology.
Grand Farm brings together researchers, growers, industry,
startups, and government to collaborate and develop
innovations impacting agriculture including equipment
advancements, automation, soil health, carbon, connectivity,cybersecurity, and traceability.

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Genetics• Supplier investments
A. Higher yield -- difficult with small seed size
B. More dense and wider plant canopy
C. Disease resistance• Lack of knowledge on what’s important internal composition criteriathat can improve natto quality.
A. TasteB. Texture
C. Shelf life
• What do we know about Hikiwari as it relates to above?
• Grower’s perception is our natto soybean genetics are inferior
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Production Costs• Labor shortage & lack ofavailable experience• Input costs
A. Fertilizer & Fuel – 2-3 times higher
B. Land cash rents• Equipment costs andavailability• Interest rates for operatingloans• Crop storage management &delivery
A. Producer investments
B. Climate advantages
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High CBoT Prices• Incentive and passion to participate reduced• Crop premiums must compete• Each producer has their own production calculations andvariables to consider for participation.
• Not only about competition from GMO soybean production• Education is important

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Crop Insurance
Effects

SPECIALTY SOYA AND GRAINS ALLIANCE• Crop insurance protection is based on yield history• Lower yielding varieties reduce proven yield history and affectdecision to participate.
• Insurance claims are based on local market price, not premiumvalue.
• Ex. 5 year proven yield history = 50 bus/acre
A. Farmer buys insurance to protect 80% -means that if production drops below 40
bus/a, he collects.
B. If 5 year proven yield history drops due to 1-2years of natto soybean production, then the relative
yield protection also drops, causing farmer to reconsider participating.
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Producer Attitude

SPECIALTY SOYA AND GRAINS ALLIANCE• Profitability is critical – producers haveoptions• Corn is still King – will this change?
• Desire to get closer to the food industry-- Production with a Purpose – getting toknow food manufacturer• Producers concern about planting
soybean varieties with more production
risk – ROI stability?
• Producers realize need to invest into
improved handling & storage• Baby Boomer vs Millennial producers

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SUMMARY

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THANK YOU!
Questions?

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New Technology Videos• Nexus Robotics• https://www.deere.com/en/sprayers/see-spray-ultimate/• https://vimeo.com/laserweeder/carbonrobotics

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