Soybean Farming in the US

The production of soybean meal grows alongside the livestock industry

Soybean meal is made from ground soybeans with oil extracted, serving primarily as animal feed. The USDA anticipates a record soybean crush of 2.6 billion bushels for the 2025/26 marketing year, an increase from 2.4 billion the previous year. This growth positions US soybean meal to meet the rising demand, which is reflected in a 3.4% forecast increase in domestic use for the 2025/26 MY, driven by an expected rise in pork and poultry production. Additionally, soybean meal remains competitively priced at $300.0 per short ton, presenting an economical choice for feed manufacturers as its price declines more swiftly than soybean oil.

Heightened biofuel production drives soybean oil sales

Soybean oil, a versatile soybean product, is widely used in biofuel production and food ingredients. The estimated production for the 2025/26 marketing year will reach 30.2 billion pounds, down slightly from last year's 31.2 billion pounds, as domestic demand, particularly for biofuels, continues to grow. Biofuel production is expected to consume around 14.0 billion pounds of soybean oil, and although the rise in demand is somewhat tempered by the shift toward lower carbon-intensity feedstocks, increased production will lead to lower prices for soybean oil, but the overall demand will enhance revenue from this segment despite health concerns about seed oils limiting its use in human food products.

Soybean hulls maintain a small share of soybean revenue

Soybean hulls, the fibrous outer coating of soybeans and a byproduct of soybean meal and oil extraction, mainly serve as a nutritious addition to animal feed. Despite their small contribution to overall soybean revenue, they remain consistently in demand in the livestock feed market due to their ability to support rumen function in ruminants like cattle, sheep and goats while substituting for more costly ingredients. Their stable sales can be attributed to their affordability, allowing producers in cost-sensitive areas to optimize feed costs while ensuring sufficient nutritional value.

The production of soybean meal grows alongside the livestock industry

• Soybean meal includes ground soybeans that have had their oil extracted and are mainly used for animal feed. The USDA reports that soybean crush is expected to reach a record high of 2.6 billion bushels in the 2025/26 marketing year (MY), up from 2.4 billion in 2024/25. This production growth makes US soybean meal well-positioned to meet growing domestic and international demand, supporting the expansion of the livestock and poultry sectors.
• Domestic disappearance, which refers to the total amount of soybean meal consumed within the US for purposes like feeding livestock, is forecast to increase by 3.4% between the 2024/25 and 2025/26 MYs. This steady growth mirrors the expected rise in pork and poultry production, with the USDA projecting gains in domestic meal use alongside record soybean crush and rising meat production.
• Competitively priced at $300.0 per short ton for 2025/26, down from $384.1 in the 2023/24 season and at a similar level to the 2024/25 season, soybean meal offers a budget-friendly option for feed manufacturers, boosting its domestic relevance. Though the price of soybean oil has also dropped, the price of soybean meal has declined more quickly, preventing its share of industry revenue from growing more dramatically.

Heightened biofuel production drives soybean oil sales

• Soybean oil is a versatile product derived from soybeans. It is used extensively as a feedstock in biofuel production and as an ingredient in food, feed and industrial products.
• US soybean oil production is estimated to reach 30.2 billion pounds in the marketing year 2025/26, up from 31.2 billion pounds the previous year. This increase has been driven by expanded domestic soybean oil demand, particularly as a biofuel feedstock.
• Domestic US soybean oil consumption is on the rise, fueled by biofuel production, which alone is estimated to use 14.0 billion pounds in the 2025/26 MY. Growth has been tempered by the use of lower carbon-intensity feedstocks. As production rises, soybean oil prices are pushed down, but overall increased demand has boosted revenue share from this product segment. The use of soybean oil in human food products has also been limited by health concerns surrounding seed oils.

Soybean hulls maintain a small share of soybean revenue

• Soybean hulls are the fibrous outer coating of soybeans, produced as a byproduct during the extraction of soybean meal and oil, and are primarily used as a nutritious component in animal feed. Although soybean hulls represent a small fraction of overall soybean revenue, their consistent market presence stems from their value in the livestock feed industry. They are widely used in ruminant diets because their digestible fiber content supports rumen function and can substitute for more expensive grain or forage ingredients without compromising animal performance in cattle, sheep and goats.
• The stability in soybean hull sales reflects their ongoing demand in feed formulations. They offer an economical alternative to other feed ingredients, especially in cost-sensitive industries such as cattle and sheep farming, where fiber is essential. This allows producers to optimize feed costs while maintaining nutritional value.

The soybean market has been bolstered by robust poultry feed demand

• The demand for poultry feed has remained resilient, with integrators steadily expanding or maintaining flocks to meet strong consumer preferences for chicken and other white meats. This persistence in poultry production supports heavy, ongoing use of soybean meal in broiler and layer rations, keeping US domestic soybean meal disappearance on a modest growth path rather than allowing any major pullback. The USDA's agricultural projections through 2035 show the consistently high production levels of recent years continuing into the medium-term.
• Strong US soybean crops in the current period have helped keep soybean meal relatively affordable for poultry producers, even as labor, energy and housing costs remain elevated. Meal prices have eased from their sharp peaks in 2022, easing feed-cost pressure for chicken companies while still underpinning solid demand for soybeans from crushers and feed manufacturers who serve the poultry sector.

Resilient hog, dairy and beef herds quietly anchor soybean demand

• This market segment includes rations for hogs, dairy and beef cattle, aquaculture and specialty livestock that use soybean meal as a high-protein ingredient alongside grains and byproduct feeds. Hog and cattle sectors have faced supply tightness, disease risks and shifting export demand in the current period, which has tempered herd growth and kept soybean meal use in these channels growing more slowly than in poultry.
• China remains the largest single importer of US soybeans for crushing into animal feed, but its import growth has slowed, and competition from Brazil has intensified. After a period of sharp import cuts, a late-2025 trade framework committed China to sizeable US purchases through 2028, yet these volumes are still below pre-trade-war highs and remain vulnerable to policy and price shifts. This reinforces the need for US farmers and exporters to deepen relationships in other growth markets and diversify feed-driven demand beyond China to sustain overall soybean exports.

Food use demand has diversified across traditional and modern soy foods

• Food use covers traditional soy products such as tofu, soy milk and soy sauces, as well as modern applications like plant-based meat analogs and fortified packaged foods that incorporate soy protein. Demand is underpinned by health-conscious consumers and customers looking to cut meat out of their diets as well as general interest in low-cost plant proteins, even as the early surge in plant-based meat sales has cooled.
• Growth is now more balanced, with steady expansion in mainstream soy foods offsetting slower momentum in highly processed meat substitutes. This leaves food use as a mid-sized but relatively stable demand channel that supports value-added processing and offers some insulation from commodity feed and fuel cycles.

Biofuels market reshapes soybean oil demand through policy and capacity

• Biofuels encompass biodiesel, renewable diesel and related advanced fuels that use soybean oil as a key feedstock under federal and state low-carbon fuel policies. Rapid investments in renewable diesel capacity and supportive policies have driven a marked increase in soybean oil use for fuel, though growth has become more volatile as obligated parties seek lower-carbon alternatives like used cooking oil and tallow.
• The USDA's early 2026 projections show soybean oil use for biofuel rising to historically high levels, anchoring demand and helping lift crush volumes even when export demand for whole beans softens. However, evolving sustainability rules and feedstock credit structures mean this market remains exposed to policy risk, which can quickly alter the economics of soy-based biofuels.

Industrial uses expand soy's role beyond food and fuel

• Soybeans support a growing portfolio of industrial products that use soy products as renewable substitutes for petroleum-based inputs. Key applications include biobased lubricants, hydraulic fluids, solvents, coatings, inks, adhesives and foams, where soy-derived components improve biodegradability and help users meet internal sustainability goals or procurement standards for bio-based content.
• In the lubricant and coatings space, soy-based esters and resins are gaining ground in niches like chainsaw oils, metalworking fluids, concrete release agents and traffic paints, where performance is comparable and environmental regulations or worker-safety concerns favor less toxic, low-volatile organic compound (VOC) formulations. Public-sector purchasing policies and corporate ESG commitments are encouraging wider trials of soy-based products in municipal fleets, construction and manufacturing, which gradually deepens industrial demand for soybean oil even when biofuel markets are volatile.

The soybean market is currently thriving due to strong demand for poultry feed, with producers maintaining or expanding flocks to cater to the growing preference for chicken and white meats. Despite challenges in the hog, dairy, and beef sectors, soybean meal usage continues, albeit at a slower pace than for poultry. Expanding into diverse food applications and the rising biofuels market also play significant roles in shaping soybean demand, while industrial uses for soy products are growing steadily, showcasing their versatility beyond food and fuel.

The soybean market has been bolstered by robust poultry feed demand

The demand for poultry feed remains strong, with integrators actively expanding or maintaining flocks to meet consumer preferences for chicken and other white meats. This continuity in poultry production drives steady use of US domestic soybean meal usage. Looking ahead, the USDA's agricultural projections anticipate that high production levels seen in recent years will persist into the medium-term. Additionally, strong soybean crops in the present day help keep meal prices affordable for poultry producers, easing feed-cost pressures as labor and energy costs stay high.

Resilient hog, dairy and beef herds quietly anchor soybean demand

Market segments for hogs, dairy, and beef cattle, as well as aquaculture, utilize soybean meal as a high-protein ingredient. However, the hog and cattle sectors deal with challenges such as supply tightness, disease risks, and fluctuating export demand, which impact herd growth and slow down soybean meal usage compared to poultry. While China is still the largest importer of US soybeans for animal feed, its import growth is slowing and competition from Brazil is increasing. A recent trade agreement commits China to substantial US soybean purchases through 2028, although these amounts remain below pre-trade-war levels and are susceptible to changes in policy and pricing. This situation underscores the necessity for US farmers and exporters to build stronger connections in additional growth markets to sustain soybean export levels.

Food use demand diversifies across traditional and modern soy foods

Food use encompasses both traditional soy products like tofu and soy milk, along with contemporary applications such as plant-based meat alternatives and fortified packaged foods that include soy protein. The demand is supported by health-conscious consumers keen on reducing meat intake and those interested in affordable plant proteins, despite a slowdown from the initial surge in plant-based meat sales. Growth in this sector is becoming more balanced, with steady expansions in mainstream soy foods countering the deceleration in processed meat substitutes, making food use a stable demand channel that supports added-value processing.

Biofuels market reshapes soybean oil demand through policy and capacity

Biofuels, including biodiesel and renewable diesel, are increasingly utilizing soybean oil as a primary input, driven by federal and state low-carbon fuel policies. Significant investments in renewable diesel capacity have led to a notable rise in soybean oil demand for fuel, although this growth has experienced volatility as companies explore lower-carbon options like used cooking oil. By early 2026, USDA projects that soybean oil use for biofuels will reach historic levels, providing a stable demand source and encouraging higher crush volumes even as whole bean export demand weakens. Nevertheless, changing sustainability regulations and credit structures expose this market to policy risks that could shift the economics surrounding soy-based biofuels.

Industrial uses expand soy's role beyond food and fuel

Soybeans are increasingly being used in a variety of industrial applications, serving as renewable alternatives to petroleum-based materials. Key uses include biobased lubricants, hydraulic fluids, solvents, coatings, inks, adhesives, and foams where soy components enhance biodegradability and help companies meet sustainability goals. In the lubricant and coatings sectors, soy-based esters and resins are becoming more common in specific niches like chainsaw oils and traffic paints, where their performance can compete with environmental regulations. Growing public-sector procurement policies and corporate commitments to ESG standards are encouraging more trials of soy-based products, progressively boosting industrial demand for soybean oil even amidst fluctuating biofuel markets.

The United States relies on Canada for a limited but essential supply of soybeans, particularly in times of regional shortages. This relationship allows US farmers and processors to mitigate risks associated with local demands without undermining their export competitiveness. Meanwhile, non-GMO and food-grade soybean imports from various origins cater to specific domestic markets, presenting both challenges and opportunities for US growers seeking to expand their presence in this niche sector.

Canada anchors limited US soybean import needs

The United States exports a significant amount of soybeans, but its total import needs are relatively small. Canada consistently ranks among the top suppliers, providing soy oilcake, whole beans, and processed soy products that move efficiently across a well-integrated North American supply chain. These shipments effectively help cover local shortfalls and meet specific processing needs without altering the US's position as a net exporter of soybeans. With shared standards, rail connectivity, and strong commercial relationships, Canada serves as a dependable source when domestic logistics or harvest conditions create gaps. For US farmers and processors, supplies from Canada act as a flexible solution to quickly fulfill specific demands, influencing their procurement strategies more than displacing large volumes of US-grown beans, while keeping the focus on maintaining export strength.

Non-GMO and food-grade soy imports fill key US niches

While the US is a big exporter of commodity soybeans, domestic buyers of non-GMO and food-grade varieties occasionally look beyond national borders to sources like Canada and specific regions in South America. These imported soybeans are often identity-preserved, adhering to stricter standards for protein content, seed size, color, and traceability than typical US soy exports. Consequently, even during years of large domestic production, specialty users may rely on overseas contracts to meet their precise needs. Non-GMO acreage in the US remains limited, and competition from higher-yielding GM varieties can restrict the supply of the exact food-grade types required by certain buyers. When domestic contract volumes or quality fall short, importers supplement their needs with additional non-GMO beans, especially in regions with high Asian food demand. This reliance on imports presents both challenges and openings for local producers; those who engage in identity-preserved contracts may compete directly with overseas imports, while others may find themselves at a disadvantage if they can't meet specialty demands at competitive prices.

China's demand for US soybeans has decreased recently, affecting export prospects for American farmers. This shift requires US exporters to adapt by diversifying their markets and focusing on regions where they can compete effectively. As Brazil continues to dominate the soybean market, US suppliers will need to highlight their unique qualities and services to maintain their presence in the global market.

China's cooler appetite reshapes export outlook for US soybeans

In recent years, China has been the largest buyer of US soybeans, but its purchasing trends have become less predictable and have declined since 2023 due to stabilized hog inventories and improved feed efficiency. As Chinese processors increasingly rely on better productivity and alternative feed sources, factors like tariffs, policy changes, and reduced state reserve stockpile further suppress the demand for US soybeans. Consequently, US exporters are expanding their reach by targeting new clients in Mexico, the EU, Egypt, and Southeast Asia to soften the impact of these changes, though this often leads to smaller, more intricate sales and escalated marketing costs, emphasizing the importance of quality assurance and relationship-building.

Brazil's edge forces US soybeans to compete on more than volume

Over the last decade, Brazil has significantly increased its soybean acreage and yields while enhancing its export infrastructure, establishing itself as China's primary soybean supplier. With this edge, Brazil typically influences the pricing in China, leaving US soybeans to fill in when there are seasonal shortages or when Brazilian supplies run low. Although projections suggest modest growth in US exports over the next decade, they will operate from a more competitive environment shaped by fluctuations in price, freight costs, and currency values, prompting US exporters to focus on geographical advantages and to highlight attributes like reliability and sustainability certifications to differentiate themselves from Brazil.

The Plains states lead the US in soybean production thanks to their rich farmland and extensive agricultural infrastructure. Access to abundant water from the Great Lakes and the Mississippi River further supports growers, ensuring that irrigation needs are met and enabling consistent yields. In contrast, other regions face challenges in soybean cultivation due to unfavorable soil, climate conditions, and high land values, steering farmers towards alternative crops.

Plains states dominate US soybean production with vast fertile farmland

The Plains region, comprising states such as Iowa, Indiana, and Nebraska, serves as the core of US soybean production because of its expansive and fertile fields along with robust agricultural infrastructure. The rich soil and flat landscape facilitate large-scale farming, allowing growers to cultivate soybeans effectively. The favorable climate, which ensures adequate rainfall during critical growing periods, along with irrigation systems that draw from aquifers, further enhances the region's productivity. Generational farming practices bolster the availability of skilled labor. Despite rising farmland prices, the established scale of operations helps keep production costs competitive, supported by a strong network of processors, transporters, and other industry structures. Additionally, land-grant universities like Iowa State University and the University of Nebraska–Lincoln play a key role by providing research-based resources and support to help farmers adapt to new technologies and improve their agricultural practices.

The Great Lakes and the Mississippi River provide growers with ample water

Regions neighboring the Great Lakes and Mississippi River are advantageous for soybean production due to plentiful freshwater supplies, ensuring reliable irrigation sources that help manage risks posed by droughts and erratic rainfall. The climate, moderated by the Great Lakes, can extend growing seasons, while the fertile alluvial soils of the Mississippi River Valley suit soybean cultivation well. The river systems also serve as efficient transportation routes, facilitating the movement of soybeans to processing plants and export terminals. Farmers in the Great Lakes region benefit from extension services offered by universities like Michigan State University and the University of Wisconsin at Madison, which focus on sustainable agriculture. For instance, Michigan State's Center for Regenerative Agriculture conducts vital research to help farmers enhance their operations while adopting eco-friendly practices, including improved soil carbon sequestration.

Climate, soil and land use limit soybean cultivation in other US regions

In various regions of the US, soil composition, climate challenges, and land availability hinder soybean farming. The arid Southwest experiences insufficient rainfall and lacks affordable irrigation options, making it more feasible to cultivate alternative crops or rangeland. Meanwhile, mountainous regions like the Appalachians have terrains unsuitable for mechanized farming due to steep slopes and fragmented fields, reducing efficient equipment usage. Coastal and urbanized areas, particularly in the Northeast and parts of California, contend with high land values and strong competition for residential and commercial development, which limits the potential for large soybean farms. In the Southeast, certain soil types present additional difficulties for soybean success, alongside increased pest and disease risks driven by local climate conditions, prompting farmers to focus on other crops that better align with their environments.