Soybean Farmers Provide $1.3 million Ceremonial Check for Soybean Meal Export Expansion

Soybean farmer leaders on July 30^th presented the Port of Grays Harbor a ceremonial check in the amount of $1.3 million for the port's Terminal 4 Expansion and Redevelopment Project. The Soy Transportation Coalition held its summer board meeting in Vancouver, Washington, on July 29-30, in order to visit soybean and grain export facilities within the greater Pacific Northwest region that accounts for 25% of U.S. soybean exports. On July 30^th, the group traveled to the Port of Grays Harbor in Aberdeen, Washington, in order to tour the Ag Processing, Inc. (AGP) soybean meal export terminal and receive an update on its future expansion.

AGP, the Omaha-based cooperative that owns and operates ten soybean processing facilities in the Midwest, announced in March of 2022 a major expansion and upgrade to its export terminal at the Port of Grays Harbor. AGP plans to construct additional storage at its Terminal 2 facility and develop a new ship loader at Terminal 4. These investments - scheduled to be operational in late 2025 to early 2026 - will ultimately allow the AGP terminal to increase annual soybean meal exports from 3 million to over 6 million metric tons. In order to accommodate this growth and investment, the Port of Grays Harbor will add 40,000 ft. of railroad track, build a new fendering system and stormwater collection and treatment facility, and create more than 30 acres of additional cargo storage area. These investments will allow the port to efficiently handle the increased volume of soybean meal while mitigating the surface traffic impact to the local community.

Given the significant benefit these planned investments will provide to U.S. soybean farmers, the United Soybean Board, the Soy Transportation Coalition, the Iowa Soybean Association, the Kansas Soybean Commission, the Nebraska Soybean Board, the North Dakota Soybean Council, and the South Dakota Soybean Research and Promotion Council committed $1.3 million to help offset some of the pre-engineering, design, and site development costs of the Port of Grays Harbor Terminal 4 Expansion and Redevelopment Project. The funding commitment was announced in the fall of 2022. The Soy Transportation Coalition's summer 2024 board meeting provided the opportunity for the farmer leaders to visit the export facility and present the port with the ceremonial check.

During the check presentation ceremony, speakers included Phil Papac, President of the Port of Grays Harbor Commission; Mike Steenhoek, Executive Director of the Soy Transportation Coalition; Chris Brossart, a soybean farmer from Wolford, North Dakota and Chairman of the Soy Transportation Coalition and the North Dakota Soybean Council; Lowell Wilson, Chairman of the Board of AGP; and Leonard Barnes, Executive Director of the Port of Grays Harbor.

"As stewards of the funding through the soybean checkoff program, my fellow soybean farmers and I are constantly exploring any opportunity to increase the profitability of our industry," said Chris Brossart. "One of the most effective ways of achieving this is to invest in the supply chain that connects what we produce with our international customers. The AGP soybean meal export facility at the Port of Grays Harbor is excellent example of this. It is for this reason that farmer leaders from the United Soybean Board, the Soy Transportation Coalition, the Iowa Soybean Association, the Kansas Soybean Commission, the Nebraska Soybean Board, the North Dakota Soybean Council, and the South Dakota Soybean Research and Promotion Council decided to invest $1.3 million toward this important project."

One of the more profound developments within the soybean industry in recent history has been the proliferation of current and planned expansion of soybean processing throughout the United States - largely inspired by the demand for soybean oil as one of the primary feedstocks for the expanding renewable energy market. These current and planned investments present a challenge and opportunity to effectively access markets for the increased soybean meal. The farmer leaders of the Soy Transportation Coalition and other organizations are demonstrating their commitment to increasing U.S. soybean meal exports through this strategic investment.

"Soybean farmers have recognized that infrastructure can either be an impediment to farmer profitability and success, or it can be a facilitator of farmer profitability and success," explained Mike Steenhoek. "It all depends upon the degree to which we maintain and invest in our supply chain. We are therefore very excited to support significant improvements to our supply chain like the investment at the Port of Grays Harbor."

"This contribution aided this transformative project during a critical point," shared Leonard Barnes. "But this project isn't just about Grays Harbor. This project is about all of you - the farmers - and the transportation of a global food source. And we can't thank you enough for having the confidence in AGP, our Port, and this project to step up and be willing to play such a role."

In October of 2022, the U.S. Maritime Administration announced the approval of the Port of Grays Harbor's Port Infrastructure Development Program grant application. The port received $25.5 million for their Terminal 4 Expansion and Redevelopment Project. There were two motivations for soybean farmer organizations to provide funding for this important project: 1.) To provide meaningful investment to a project that will enhance U.S. soybean meal exports in the near future and 2.) For the Port of Grays Harbor and AGP to be able to highlight the funding commitment from farmer organizations, which would enhance the viability and competitiveness of their grant application. Soybean farmers have a long history of seeing their funding leveraged - thereby helping accelerate project completion and increasing its scale and scope. The investment by soybean farmers for the Port of Grays Harbor project is another terrific example of this.

"Over the years, AGP has developed a very strong relationship with customers in southeast Asia," explained Lowell Wilson. "This project at the port will significantly improve speed, capacity, and product availability for the benefit of our current and future customers. In short, the work being done here will ensure the direct link from the farmer to the international customer grows ever stronger."

"The financial contribution the Soy Transportation Coalition and the supporting associations have committed to this important infrastructure project does not go unnoticed by the Port and our community," stated Phil Papac. "We are incredibly proud of the role the Port plays in exporting the crops that you grow, that AGP processes, and that help feed millions of people throughout the world."

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Established in 2007, the Soy Transportation Coalition is comprised of fourteen state soybean boards, the American Soybean Association, and the United Soybean Board. The goal of the organization is to position the soybean industry to benefit from a transportation system that delivers cost effective, reliable, and competitive service.

This photo features the presentation of the $1.3 million ceremonial check from farmer leaders to officials representing the Port of Grays Harbor and AGP. The current AGP soybean meal export terminal is in the background of the photo. Photo credit: Joe Murphy.

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