Soybean: Facts and Agricultural Value in U.S.

The United States remains a global leader in soybean production, with around 90 million acres dedicated to the crop annually. This vast cultivation underscores the soybean’s vital role in American agriculture, both as a major cash crop and as a primary export.

Every year, farmers rotate soybeans with corn and wheat, enriching the soil and optimizing yields. But what makes the soybean plant so essential to the U.S. agricultural landscape?

Soybean Plant: Key Facts

Before delving deeper into its significance, let’s go over some key facts about the soybean plant:

• Legume Family: Soybeans belong to the legume family, making them related to peas, clover, and alfalfa.
• Versatility: The crop is used for human food, animal feed, biodiesel production, and numerous industrial products.
• Production Numbers: In 2018, U.S. farmers harvested 4.39 billion bushels of soybeans, with an average yield of 49.1 bushels per acre.
• World Record Yield: Alex Harrell holds the record for the highest soybean yield, 218.29 bushels per acre, using Pioneer brand Z-Series variety P49Z02E.
• Soybean Yield: A single bushel of soybeans produces about 11 pounds of oil and 48 pounds of protein-rich meal.
• State Leaders: Illinois is the top soybean-producing state in the U.S.

Soybean Production by the Numbers

In 2023, the total value of the U.S. soybean crop reached $60.7 billion, with 4.27 billion bushels harvested. The U.S. retained its position as the world’s leading producer, just behind Brazil, which harvested 5.95 billion bushels. In 2017, U.S. farmers planted 83.6 million acres of soybeans, accounting for 31% of total crop acreage, with corn leading at 35%. This upward trend in soybean acreage, growing from 58.8 million acres in 1988 to 75.7 million in 2008, continues to reflect the crop’s importance.

Soybean exports have also seen significant growth. In 1988, 527 million bushels were exported; by 2017, this number reached 2.065 billion bushels. The largest market for U.S. soybeans has been China, with annual imports valued at over $12 billion, followed by Mexico and the Netherlands. Notably, 82% of the soybeans exported are sold whole, with soybean meal and oil accounting for 15% and 3%, respectively.

Price of Soybeans: Market Fluctuations and Regional Impact

Soybean prices have experienced considerable fluctuations. In 1988, the price was $7.42 per bushel, dropping to $4.93 in 1998, peaking at $9.97 in 2008, and reaching $14.20 in 2023. Despite these price shifts, rising production costs have remained a significant challenge for growers.

Leading soybean-producing states in 2023 included Illinois (648.9 million bushels), Iowa (573 million), and Minnesota (349.4 million), with each state contributing heavily to the overall production.

The Many Uses of Soybeans

One of the driving factors behind the robust production of soybeans is their numerous uses across industries.

• Biodiesel: Soybean oil is a key feedstock for biodiesel production. U.S. biodiesel production has grown dramatically, from 2 million gallons in 2000 to 1.83 billion gallons in 2017.
• Animal Feed: A significant portion of U.S. soybeans, 18.9 million short tons, goes into animal feed. Soybeans are used to feed poultry (18.9 million tons), swine (8.6 million tons), beef (2.8 million tons), dairy (2.5 million tons), and even pet food (0.8 million tons).
• Industrial Applications: The industrial uses of soy oil are expanding. From roofing and flooring materials to cleaning agents and resins, soy oil is also used in environmentally friendly products like soy ink and soy-based building materials.
  

Technological Advancements in Soybean Cultivation

Soybean production has greatly benefited from technological innovations in agriculture. The optimal planting temperature for soybeans is around 50°F, but delayed planting in cool, damp conditions can reduce yields by 8 to 10 bushels per acre. Seed genetics has also played a pivotal role, with advancements allowing farmers to select hybrids suited to specific climates and regions, balancing higher yields against production costs.

Additionally, precision farming technologies and innovations in soil health management continue to improve efficiency and productivity, ensuring the sustainability of soybean farming in the U.S.

Future of Soybeans: Growth, Innovation, and Market Potential

Soybeans will undoubtedly continue to be a cornerstone of U.S. agricultural production for decades to come. The crop’s adaptability, combined with ongoing innovations in genetics, farming technologies, and industrial applications, means the future of soybeans holds even more potential. With new markets emerging and production methods becoming more efficient, the soybean industry is set to remain a critical part of the global agricultural landscape.