Soybean backgrounder
Ash, M.; Livezey, J.; Dohlman, E.
Electronic Outlook Report from the Economic Research Service (OCS-2006-01): 43 pp.
2006
Document Number: 275537
US soyabean plantings peaked at 75.2 million acres in 2004, pushing output and use to record levels. Future increases in acreage and production, however, could be limited by competition for area from other US crops, possible constraints on yield growth from changing rotations and new diseases, and increasing foreign competition. The US share of global soyabean and soyabean product exports has steadily diminished due to the phenomenal growth of foreign soyabean output and exports, particularly by Brazil and Argentina. The development of non-traditional soyabean uses (such as biodiesel) and growth in demand for food use could provide some support to the US soyabean sector. In 2004, at least three-quarters of all soyabean-producing farms had farm operations that were considered profitable. Since 2002, government payments to the soyabean sector have been relatively small, consisting primarily of fixed direct payments. Domestic market conditions, Federal budget deficits, and multilateral trade negotiations will be important considerations for new farm legislation.