STC Study: Dollars Bypassing a Farmer’s Wallet. A study underway by the Soy Transportation Coalition (STC) highlights the potential loss of revenue for soybean farmers across the country. The study, funded by the soybean checkoff program, identifies how the soybean basis has gradually, yet consistently, become wider and more negative during the last five years. Soybean basis is the difference between the local cash price and the nearby futures price on the Chicago Board of Trade (CBOT). The difference between the local cash price and futures price is due to transportation costs, storage costs, interest accrued, local supply and demand conditions, speculative investment activity and other factors. The STC report showed that soybean basis differed by as much as $1.80 per bushel among the states studied. For example, the cash price at local elevators in North Dakota and South Dakota were some of the lowest paid to growers. “This study gives us a better understanding of the negative growth in basis levels,” says Mike Steenhoek, executive director of the Soy Transportation Coalition. “While much attention is currently devoted to the impact of speculative investment activity on basis levels, the focus of the STC analysis is to identify the degree to which transportation inefficiencies are also a contributing factor. “Our transportation system in this country should make it easier for soybean producers to be profitable; it should not be an obstacle. Our goal is to help ensure that farmers receive as much value for their soybeans as possible. “Studying basis growth and transportation’s role in it will help in translating these complex, macro infrastructure challenges into terms that are tangible and conceptual to individual farmers and the rural communities in which they reside. This national problem has an economical ripple effect impacting a farmer’s wallet and, by extension, cash registers on Main Street.” The basis study used price data from more than 2,600 locations collected by Cash Grain Bids Inc. to provide a national overview of basis change during the month of October for 2006 and 2007 compared to averages for the last five and 10 years. Similar analysis is also presented for February and June. The full study on soybean basis, including individual state maps and data, can be accessed at the STC Web site, www.soytransportation.org. Click on “Soybean Basis Developments.”
	The Soy Transportation Coalition is comprised of seven state soybean boards, the American Soybean Association, and the United Soybean Board. The National Grain and Feed Association and the National Oilseed Processors Association serve as ex-officio members of the organization.