From Field to Future: Reimagining Soy Beyond Food, Farm Bill and Tariffs-toll on Industry

The economic powerhouse of Ohio's agriculture takes center stage as Kirk Merritt, Executive Director of both the Ohio Soybean Association and Ohio Soybean Council, reveals the remarkable impact of the state's soybean industry. With 25,000 farmers generating $3-4 billion in direct revenue and contributing approximately $8 billion to Ohio's economy, soybeans are far more than just another crop.

Facing a perfect storm of challenges, farmers are navigating historically low crop prices alongside stubbornly high input costs. Meanwhile, the critical Farm Bill—legislation that provides essential safety net programs for farmers—remains two years overdue. Merritt details how these programs only activate when truly needed, serving as crucial protection against unpredictable market and weather conditions. The conversation explores how trade tensions affect soybean farmers, with more than half their crop destined for export markets. Both Canada and Mexico, Ohio's first and second largest soybean customers, feature prominently in current trade negotiations, raising significant concerns about potential retaliatory tariffs similar to those that damaged exports in 2018-2019.

Particularly fascinating is Ohio's innovative approach to creating new markets for soybeans. Through partnerships with Ohio Wesleyan University and Shawnee State University, the Airable Research Lab develops commercial soy-based products like biodegradable chainsaw oil, which is now sold through major retailers nationwide. This forward-thinking strategy drives additional demand while offering environmentally sustainable alternatives to petroleum-based products.

Weather extremes continue testing farmer resilience, with last year bringing excessive spring rainfall followed by record-breaking drought in southern Ohio that decimated yields. As agriculture evolves, Merritt highlights the growing importance of technology and reliable rural broadband connectivity to optimize operations and remain competitive. Whether you're concerned about food security, environmental sustainability, or rural economic development, this eye-opening conversation reveals why soybeans matter to all Ohioans.

Discover how this humble bean impacts everything from your local economy to global trade relations. Subscribe now and join the conversation about Central Ohio's agricultural future!

Ohio Soybean Council 

Ohio Soybean Association

Transcript

Introduction to Central Ohio Matters

Speaker 1 0:01

Welcome to Central Ohio Matters, the podcast where we delve into the issues that shape Central Ohio's future. Each episode features in-depth conversations with local leaders, visionaries and changemakers driving progress in our region. These conversations offer insights into the challenges our communities face and the solutions being crafted to move them forward. Here are your hosts, michelle Gatchel and Ryan Rivers.

Speaker 2 0:24

All right, everybody, we have a great show for you. Today we are going to talk to Kirk Merritt. He is the executive director of the Soybean Association, the Ohio Soybean Association and the Ohio Soybean Council. Kirk, thank you so much for joining us.

Speaker 3 0:39

My pleasure, Michelle. Good to see you.

Speaker 2 0:41

Pleasure, michelle. Good to see you, you too. So, gosh, you know, farming in Ohio has been here, for, you know, centuries, and we're really good at it. I mean, that's something that we are really good at, but it's a challenging lifestyle these days. So how is the Soybean Association?

Farming Challenges and the Farm Bill

Speaker 3 1:02

working with the farmers to help balance that, with the farmers to help balance that. Yeah, our soybean association works really hard to represent soybean farmers and to do the things that will benefit them at the state house and in DC on a policy front. We have approximately 25,000 soybean farmers in Ohio, many part-time but quite a few full-time as well and, as you mentioned, soybean farming and agriculture in general is a big industry in Ohio. Soybeans alone generate anywhere from generally $3 to $4 billion of direct revenue for farmers from the soybeans that they raise and grow in Ohio, and the indirect economic impact of the soybean industry and soybean farming in Ohio adds up to about $8 billion. So soybeans alone are a significant boost to our economy and farmers, you know, contribute a lot to their communities and to the state overall kind of help me understand.

Speaker 2 2:22

You're helping soybean farmers in general by lobbying for them. You know being legislative leaders in the different areas from the state to the federal. But if I'm a soybean farmer out there, how do I find out? How is this helping me? Do I come to you and complain? Hey, these things are crushing me because of the prices from you know taxes.

Speaker 3 2:54

How does the interaction happen? Yeah, good question. We interact directly with many soybean farmers from across Ohio, so we really try to listen to and understand what farmers need. Understand what farmers need. Some of that is at the state level, so we're very active in Columbus and represent soybean farmers and try to do things that benefit them.

Speaker 3 3:17

And then there's also significant activity at the federal level that we're trying to work on and influence to benefit farmers. One example of that, michelle we are currently working on and have been for quite a while now the next farm bill. As you may know, the farm bill is passed by Congress, and generally every five years. The farm bill runs five years. The last farm bill was passed in 2018. So we should have gotten a new farm bill two years ago, and we still don't have one. There have been extensions of the current farm bill, which is certainly better than nothing. I'm not saying that, but farming is a lot different in 2025 than it was even in 2018.

Speaker 3 4:09

And so the Farm Bill is a significant source of the safety net, if you will, for farmers. There's crop insurance. There are programs that only kick in when a farmer really needs them, so that's why we call it the safety net. These are not the situation where where you know farmers are getting payment whether they need them or not. These are only through the farm bill. You're only getting support if you need it. So it's the the kind of situation where, when farmers need support to be able to, to make it from one year to the next and, and uh, plant the crop the following year. We really need it, and so it's a little bit outdated. Now there's a lot of improvements that could be made to it. Uh, so that's a. That's an important part of the farm bill.

Speaker 3 5:03

Another part of the Farm Bill which is very timely in all the discussions we're having around trade today in policy is the Farm Bill also includes programs to support export promotion and diversifying our export markets, not just for soybeans. For all of agriculture, exports are really important. Soy specifically, more than half of our crop gets exported. For example, the corn crop about a third. Even our livestock farmers rely on exports. 25% of the pork that's produced in the United States gets exported. So the Farm Bill also has programs that support promoting and diversifying our export markets and opening new markets.

Speaker 4 6:10

Kirk, right now, especially with all the news with tariffs and these trade negotiations going on, how is that affecting exports and the current import-export market?

Speaker 3 6:15

Yeah, really good question, Ryan, and I'll start by saying farming is in a challenging place right now. It's for crop farmers in Ohio and across the country. Prices are as low as they've been for several years and input costs are still relatively high. The income, the revenue that farmers get from growing a crop, has gone down and has decreased, but the cost of planting and raising and harvesting a crop is still relatively high. As I mentioned earlier, more than half the soybean crop gets exported. So it's a real success story over the years for us and I think it's a part of the success story of ag in general that our farmers are productive enough that we can grow all the food we need domestically and still be able to feed the world. So exports have really, I think, been part of our success story. Have really, I think, been part of our success story.

Speaker 3 7:29

So, to your question about the current trade tensions, our concern would be that we get into a situation where there are retaliatory tariffs going back and forth and it results in a situation where prices go down even further and our export volumes decrease.

Speaker 3 7:48

Using 2018, 2019 as a guide, we certainly saw prices go down and export volumes go down during the situation where we had the trade tensions in 2018, 2019. So to your question, Ryan, we would be concerned that that would happen again and it would be a negative impact for farmers. The other aspect of the current situation that's a little different than it was seven years ago is that in the past it was generally the trade and the tariffs were generally focused on China, and China is still our number one market. It's not as big as it was back then, but still our top export market. But the other wrinkle this time is that Mexico has been brought into the situation and Mexico's our number two market for soybean exports. So Our hope would be that the trade tensions could be resolved soon and that any sort of negative impact on farmers would be very limited.

Speaker 4 9:21

Farm Bill put together. I'm sure some of this is being addressed, and what are the issues that are kind of at the top of the list for our new Farm Bill that the association is focusing on or of most important?

Speaker 3 9:30

Yeah, good question. Probably at the top of the list would be. At the top of the list would be updating and enhancing the safety net that helps farmers in situations where they have a challenging year. So that takes two forms. One I mentioned earlier is the crop insurance, where a farmer could actually buy a policy, pay a premium and if the crop that they raise isn't a good one, they would be able to file a claim and recover some of the cost. The farmer's not going to make money, not going to profit, off of crop insurance, but it would be a situation where they'd be able to keep farming from one year to the next and one bad year wouldn't put them out of business. That's one aspect where we're at least looking to maintain, if not enhance, the farm bill. Another area of the farm bill that's very important for farmers is also part of the safety net the price protection, revenue protection plans that farmers can benefit from. So those, in a somewhat similar way, when a farmer has a difficult year you know isn't kind of up to what the average would be, what their usual year would be there would be some support for them.

Speaker 3 11:05

Another area of the Farm Bill that has been important over the years is conservation programs Farmers in Ohio have especially embraced and farmers across the country, but especially in Ohio, have embraced conservation practices on their farm that are good for the soil, good for the environment and reduce the amount of runoff that would be coming from fertilizer or nutrients off the farmland.

Speaker 3 11:31

So, for example, cover crops are a good example of that where the Farm Bill would have support and we would hope that that could be maintained or enhanced for farmers to grow cover crops. Cover crops generally don't pay for themselves but they are very good for the soil, very good for the prevention of erosion. So it's kind of a win-win if, if uh farmers can get support for that Um and there are other many other conservation practices that that uh farmers have embraced uh that that uh, for example, the the um specific precise uh variable rate, uh application of nutrients. Nutrients you know farmers very generally today, very unusually today, would they just spread fertilizer at the same rate over the whole field? Many farmers have implemented what's known as variable rate application, where only the part of the field that needs the nutrient actually gets it. So reduce the amount of fertilizer that we use, reduce the amount of input costs for farmers as well. That's also an important part of the farm bill the conservation programs and then the other thing.

Speaker 3 12:59

I would highlight in the Farm Bill would be the export promotion, the opportunities to diversify markets, specifically through programs that are known as the Market Access Program and the Foreign Market Development Program, so both designed to help agricultural organizations on behalf of farmers to open markets, build those relationships that would lead to more export opportunities for soy and corn livestock and other agricultural commodities.

Speaker 4 13:36

Commodities when does? As far as workforce goes and farming labor, is that something? In Ohio, I mean, there's different industries that've struggled as far as labor. How is the farming industry right now as far as labor and having enough hands on deck to have these farms functioning and producing like they should?

Speaker 3 14:01

Yes, really good question. It's an important issue for all of agriculture. Soybean farming tends not to be as labor intensive as some other aspects of farming, so it's not as big an issue. It's still an issue for soybean farmers to find good workers and retain good workers. Workforce is extremely important, but you also see significant labor issues and, in some cases, challenges in those parts of agriculture that are much more labor intensive, and some of that production does happen in Ohio. Agriculture that are much more labor intensive and some of that production does happen in Ohio. Dairy farming is one case where you know there would be significant labor needs. We have tomato production in Northwest Ohio. That's a very labor intensive crop, so there would be labor challenges in Ohio that farmers are definitely dealing with.

Speaker 2 15:03

Just kind of wrapping up the farm bill Projected. What are you guys supposed to be talking about? This and putting it out there on the floor?

Speaker 3 15:12

So the goal would be to get a farm bill done this calendar year. We were actually in Washington last week, several of our farmers and several of our staff making hill visits and meeting with members of Congress and staff members going to happen in the first half of the year. There are just too many other priorities for Congress that are higher on the list than the Farm Bill but that the hope would be. The Farm Bill is a high enough priority that it could be on the floor and considered and you know our fingers crossed maybe even passed by the end of the year. I think the most optimistic projection would be the end of the third quarter, so by September 30th, but probably a more likely but still optimistic timeline would be by the end of the year.

Speaker 2 16:18

Um, you mentioned how about fertilization and how they're doing a bunch of conservation things. I've done several stories through the years of using technology, using satellites, to monitor their fields so that they can do that better. How have, how has technology really helped the industry?

Speaker 3 16:40

Technology has has played a significant role in increasing productivity and reducing the amount of inputs that are required in crop farming. Today is amazing the planters, the tractors, the combines, in most cases not all farmers have adopted, but in most cases are guided by GPS. It's very precise the management and application of nutrients in many cases is guided by GPS and by mapping and soil tests, and so the the amount of technological savvy that a farmer needs today is quite high. Actually, farmers are very, very adept at deploying and understanding technology and you know, they're out in the field, they got to fix it. So they really need to understand it and they do. The technology has been a real, you know, a real boon to crop farming.

Speaker 2 18:17

There is a program Well, the let's let's. The Ohio soybean council has the checkoff program. Can you give us a little explanation of what that is for people?

Speaker 3 18:27

Yeah, I'd be happy to. So we had talked earlier about the activities of our association, more policy oriented, more member driven in terms of the agenda. The council is the organization in Ohio that's responsible for investing what's known as the soybean checkoff. The checkoff is a concept that was introduced into agriculture many years ago, decades ago, and it's the recognition that farmers will do better if they can pool their funds and do activities that benefit themselves. So the checkoff is a very small percentage in the case of soy, a very small percentage that farmers contribute out of their revenue. So it's one half of 1%.

Soybean Innovation and New Products

Speaker 3 19:18

Currently, soybeans are priced at about $10. So it'd be about a nickel on a bushel. And our board, the the ohio soybean council board, which is made up of all farmers. So I'm on the staff, I work for the farmers. Our farmers make the decisions on how to invest those funds and the members of our board they're elected by their peers, by district, and so it's a very bottom-up kind of a process, and then the farmers on our board make the decisions on how to invest those funds.

Speaker 2 19:55

What are some of the areas that they tend to invest in?

Speaker 3 19:59

Yep. So we are able to invest in any area that would benefit farmers, except for policy. There's a very clear line the association is policy, the checkoff is not policy. So what's that mean? The checkoff can invest in research, in building demand and marketing, in education and communication things that our board think will drive a return on investment for farmers. We really try to look at the checkoff and those funds and our board views those funds as investments and we're looking for an ROI. We don't always have a quantifiable. Sometimes we do have a quantifiable ROI, but always, no matter what it is we're looking for, how does this benefit the farmer? How can we generate an ROI on the research or the marketing or the educational programming that we do?

Speaker 2 21:10

And one of those things that I have reported on is the connection and partnership that you guys have made with Ohio West and utilizing their physics labs to come up with new ways to use soybeans so that Ohio farmers can, you know, can sell to different kinds of companies that we aren't normally selling to. Can you tell us a little bit about that?

Speaker 3 21:29

We're very excited about that. I'd be happy to tell you more about that. For many years, the Ohio Soybean Council Board has invested in what are informally known as new uses, so looking for opportunities to drive and for soy through new consumer and industrial products that are made from soy. So we worked for many years with Patel Memorial Institute in Columbus, ohio-based global company, and built a portfolio of products and concepts and several years ago the board said well, how can we take that to the next level? So, long story short, taking it to the next level was forming our own small lab. We call the lab Arable Research Lab and, as you mentioned, michelle, the lab space we didn't want. We didn't think it was a good investment to buy all the equipment, all the lab equipment, spend millions of dollars outfitting our own lab. But we partner with the Ohio Wesleyan University, as you mentioned, in Delaware, ohio. They have some lab space that we're able to rent. So it's very sophisticated equipment that we wouldn't be able to afford to buy, but we can rent it. And so our staff. We have a small staff and literally all they do the chemists and engineers and lab technicians who are all day, every day, looking for ways to incorporate soybeans into new products.

Speaker 3 23:21

I'll give you a couple of examples, recent success stories. We've partnered with a technology company that works directly with Stanley Black Decker and we've developed a new soy-based bar and chain oil for, uh, for um, chainsaws. So, uh, if, if, uh, a farmer owns a chainsaw or uh you know commercial forestry company owns a chainsaw or uh, you know a lawn care company, they uh maintain part of maintaining that chainsaw is using a bar and chain oil to keep it lubricated and keep it functioning correctly. In the past that was a fairly toxic material and, you know, wasn't good for the operator, wasn't good for the environment, you know would get into the topsoil. That's not good for the environment. We have developed a soy-based barn chain oil that is essentially biodegradable. So it's not bad for the operator, it's not bad for the environment and it's really selling well.

Speaker 3 24:39

That's a Stanley Black Decker product. So that's one good example. It's in, you know, it's in Home Depot stores all over the country. You can buy it on Amazon. It's an actual commercial product. So that's driving demand for soybeans. So that's what we're trying to do and really trying to work in partnership with corporations who are looking to provide a more sustainable product be more environmentally friendly, and so we're really excited about the opportunities there. In fact, our board is so excited that we have committed to establishing a satellite lab at Shawnee State University just within the last month or so. So another opportunity to partner with an Ohio University and, you know, make it a win-win. Shawnee State has different equipment than Ohio Wesleyan does, so it's not a duplication, it's an extension of what we've been trying to do with our with our arable lab.

Speaker 2 25:45

Plus, you have like a ready, like filter of students that can be interns for you right there.

Speaker 3 25:54

Yes, yes, definitely.

Weather Challenges and Future Outlook

Speaker 2 25:56

Yeah, so what's next? What are some areas you know I will. I kind of want to ask you so, Farmer's Almanac, I mean, we've been seeing some crazy weather Did the Farmer's Almanac predict all this crazy stuff that's been happening in the last year or so, and what are the farmers looking forward to now?

Speaker 3 26:34

months in Ohio. You know, a year ago at this point we thought, okay, we're going to have a perfect planting season and great crop, and then it started raining a little too much and so farmers were really challenged. And I'm being very general here. Pockets of the state were perfect, pockets of it weren't good, but generally it was a challenging spring because it was a little too wet so it was hard for farmers to get the crop in in a timely manner. And then about well, heading into June, july 1st, in a lot of the state the rain just shut off and we had the worst drought in, especially in Southern Ohio that we've ever had. You know you talk with meteorologists and climate experts who track this stuff. The drought that we had in Southern and Southeastern Ohio in particular was as bad as on record, so that was really challenging. Most of the rest of the state also had drought, not as severe, but still you know bad enough that it did limit the yield on the soybean crop and the corn crop to some extent.

Speaker 3 27:46

So back to you know some of the earlier conversation that we had. That's an example of why we need that farm bill, that farm safety net. You know, especially in parts of Southern Ohio, the soybean crop was, you know, a third, a quarter of what it usually is. So there's no way that without crop insurance or without the safety net programs, that a farmer would be able to keep going. So a good example of why we need those programs. Looking forward, as you well know, farmers are eternally optimistic and are looking forward to a good planting season followed by a good growing season. This year, farmers in the southern part of our state will be looking at starting their planting, probably within the next two or three weeks. In a lot of cases, the northern part of the state, you know, where it's a little cooler, it's probably more like a month away. But you know, if we get the right weather over the next two, three months, farmers will be excited about getting the crop into the ground.

Speaker 4 29:07

And looking forward in the future. A lot of rural areas in Ohio struggle with internet connectivity, high-speed internet. Do you feel as far as efficiency and, I'm sure, profitability, that if some of these areas could have that potentially equipment automation, that that could help as far as the future of farming in Ohio?

Speaker 3 29:40

Yes, it's a great point, ryan. Rural broadband is a significant challenge, and access to the internet at the speeds and the levels that we need could hold back farming if we don't get it right. That's a big priority for us. Fortunately, both the state and the federal government have made that a priority. It's better than it used to be, but it's still not where it needs to be for the future. We what drives decision-making from technology is data and data needs. You know internet capacity and storage. So rural access to the internet is important and will only get a lot more important for the success of farmers.

Speaker 2 30:31

Well, unfortunately we're out of time because I think we could probably sit here and talk for a whole other hour at least. But I want to thank you, kirk, for coming on and filling us in about the soybean industry here in Ohio the challenges we're facing and the successes that we're having.

Speaker 3 30:50

My pleasure, michelle and Ryan, and happy to talk with you, and I think the future is bright.

Speaker 4 31:04

Our farmers will always find a way and we'll keep moving forward.

Speaker 3 31:05

Thank you.

Speaker 1 31:06

Thank you. Thank you for listening to this episode of Central Ohio Matters. Be sure to like, share and download. We cover government policies, health care challenges, housing and business developments, transportation solutions, education and innovation. If you know of a good story we should be talking about, go to the radio station website and fill out a contact form Directed to Michelle Gatchel, host of Central Ohio Matters. Thank you.