USDA- Economic Research Service Report Highlights U.S. Soybean Production

Last week, the USDA’s Economic Research Service (ERS) released a report titled, “Characteristics and Trends of U.S. Soybean Production Practices, Costs, and Returns Since 2002.”  Today’s update includes highlights from the report, which was authored by Kate Vaiknoras and Todd Hubbs.

The ERS report indicated that,

Over the past two decades, U.S. soybean acreage, yields, and exports increased while prices trended upward.

“Soybean planted acreage grew 18 percent between 2002 and 2022.

“While planted acreage lagged that of corn in most years, soybean acreage grew at a faster rate than corn during the period.”

Vaiknoras and Hubbs pointed out that, “U.S. soybean exports increased over time as a share of total U.S. production but fell in 2018 due to trade restrictions.

“In the 2017/18 marketing year, which runs each year from September to August, exports were 48.4 percent of production, but the following year fell to 39.6 percent.

“Soybean prices and acreage also fell that year. Soybean exports quickly rebounded, and in 2020/21, equaled 53.7 percent of production.”

With respect to yields, the ERS report noted that, “Yield trended upward but was affected by pest and weather events, including aphid infestations in 2003 and a drought in 2012.

“Prices trended upwards over the past two decades but there was fluctuation between years. Nominal soybean prices peaked in 2012 at $14.40 per bushel.”

Last week’s report also stated that, “Genetically engineered seed varieties became commercially available in 1996. Adoption of herbicide-tolerant genetically engineered soybean varieties was nearly universal by 2006. The most common type of seed is tolerant to glyphosate, a widely used herbicide.

“Demand for other herbicides, such as dicamba, has grown due to the spread of glyphosate-resistant weeds. Dicamba-tolerant soybean varieties became commercially available in 2016. By 2018, 43 percent of soybean acres in the United States were planted with dicamba-tolerant seed, though the acres were not all treated with dicamba.”

Vaiknoras and Hubbs added that, “Changing soybean production practices contributed to an increase in the cost of producing an acre of soybeans, as well as yields, and productivity. The unit cost of producing a bushel of soybeans, adjusted for inflation, fell from $10.21 in 2002 to $9.07 in 2018. Of the years 2002, 2006, 2012, and 2018, this cost was lowest in 2006 at $8.93 per bushel.

“From 2002 to 2022, net financial returns were highest in 2012—a major drought year when soybean prices were relatively high, and lowest in 2019, a year when soybean prices were relatively low. Net soybean returns were positive in more years than for corn and wheat, which may explain the growth in soybean acreage relative to those crops.”