The American soybean industry is shifting its focus from traditional international markets like China toward a domestic infrastructure fueled by renewable energy and industrial innovation.
As export demand from China, once accounting for 30 percent of U.S. bean shipments, continues to soften, industry leaders are looking toward “crush” expansion. This process, which extracts oil from soybeans, is being fueled by the renewable diesel sector. But growth is hitting a regulatory wall, explains American Soybean Association Chief Economist Scott Gerlt. The EPA has yet to finalize blending levels for the current and upcoming years, leaving a gap in the policy support necessary to sustain market stability.
The industry is also facing a new cultural challenge: the “Make America Healthy Again” (MAHA) movement. Influencers within this movement have targeted seed oils and specific pesticides, though Gerlt notes that the science often tells a different story.
“MAHA claims that (seed oils) are unhealthy. The science is really on the opposite side… soy carries a qualified heart-healthy label from the FDA.”
Beyond the frying pan and the fuel tank, the pivot for soy includes a suite of new bio-based products. From high-oleic soybeans to soy-based firefighting foams, the search is on for the next major market driver. While the path forward requires navigating state-level legislative fights and federal blending mandates, the outlook remains cautiously optimistic.
“I do not think anyone knows exactly where the next silver bullet is. But I really think there is one out there on the horizon,” Gerlt says.
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