The Power of the Bean

Soybean economics goes well beyond the field

BY JEFF HUTTON

From multiple applications and uses, the soybean is a juggernaut; food, fuel, fiber — this little bean is powerful. But beyond the bean’s usefulness is the impact it has on the economy. In Iowa, that’s worth a lot.

Tales of success

Ask those in the know and they’ll tell you the economic influence soybeans has goes well beyond the farm field.

“The approximately 600 million bushels of soybeans harvested annually in Iowa makes our state a national leader in production and those soybeans are used to make hundreds of products enjoyed by consumers all over the globe,” says Iowa Agriculture Secretary Mike Naig. “Whether it’s feed for livestock, biofuels for transportation, oil for cooking, or even biopolymers for asphalt, Iowa soybeans and the diverse and innovative products made from them are essential to the continued strength of Iowa’s economy.”

Iowa Soybean Association President-elect Brent Swart agrees.

“Soybeans provide a valuable resource for the entire state and obviously, jobs and opportunities in rural Iowa, elevators, coops, seed companies, crushers and more,” he says. “There are so many uses for soybeans — and it’s not just oil and animal feed. Soybeans provide jobs and resources in the state. It’s all interconnected.”

Fellow ISA board members and producers are in lockstep with Swart.

“Soybeans are critical to the Iowa economy,” says ISA District 2 Director

Sam Showalter. “I like to say that agriculture as a whole is the backbone of the Iowa economy and soybeans play a crucial role in that. With an annual crop that exceeds $4 billion in value, upon selling their crop, farmers then spend that money in their local communities.”

“Iowa soybean production is very important to the Iowa economy,” says ISA District 7 Director Lee Brooke. “Soybeans are a renewable source of fuel, feed, food, oil, fiber and other products. Because of these important usages of soybeans and their value to Iowa farmers, it boosts the Iowa economy. Soybean farmers contribute about $11.5 billion to the state’s economy each year. Many occupations in the state are directly related to agriculture and more recently the new soybean crush facilities for renewable diesel fuel.”

Interconnected

Brian Waddingham, executive director of the Coalition to Support Iowa’s Farmers, says soybeans are a critical piece of Iowa’s economic fortunes, including the connection between those beans and the state’s livestock industry.

“There is no doubt that soybeans have a major impact on Iowa’s economy. Animal agriculture is the No. 1 customer of soybean growers. Livestock and poultry add value to grain,” he says. “Livestock is bringing young families back to the farm and making local economies thrive. It puts people back in the seats at church, it helps the grocery store on main street stay open and puts

children back in the schools. Increasing Iowa’s livestock and poultry numbers will increase the amount of soybeans needed to feed them — which is a good thing for both livestock farmers and soybean producers.”

The Coalition to Support Iowa’s Farmers was created by farmers in 2004 with the mission of working with farmers to advocate and help implement on-farm best-management practices that assist Iowa’s farm families in raising livestock responsibly and successfully.

The Coalition is a partnership involving the ISA, Iowa Beef Industry Council, Iowa Cattlemen’s Association, Iowa Corn Growers Association, Iowa Farm Bureau Federation, Iowa Pork Producers Association, Iowa Poultry Association, Iowa Turkey Federation and Midwest Dairy.

Waddingham points to the results of the 2024 Iowa Agriculture Economic Contribution Study which indicates that agriculture remains a vital part of Iowa’s economy. The study shows that more than 22% of Iowa’s total economic output came from Iowa agriculture in 2022:

• Nearly one in every five Iowans are employed in agriculture and ag-related industries, accounting for more than 385,000 jobs.

• The study also noted that crop farming and processing account for 99,271 jobs and $16.2 billion in value-added contributions to Iowa, up from $11.1 billion in 2017.

• More than 96% of farms in Iowa are family owned and operated with farm size averaging 345 acres.

Grant Kimberley, the executive director of the Iowa Biodiesel Board and ISA’s senior director of market development for demand and advocacy, knows soybeans continue to be an important part of the state’s overall economic future.

“Iowa is the largest producer of biodiesel in the country,” he says. “Biodiesel adds 13% to the net market value of soybeans. Iowa is also the largest soy crusher. We export meal and soybeans all over the world. Fifty percent or more of the U.S. soy grown is exported in one form or another. These two market segments, along with domestic livestock, add massive value to U.S. soybean farmers’ bottom line.”

Iowa is a key player when it comes to U.S. soybean exports, according to the Iowa Economic Development Authority (IEDA). Total U.S. soybean exports for 2023 were $28 billion. Of that, Iowa soybean exports totaled $3.9 billion.

In addition to the more than 40,000 soybean farms, IEDA says there are 1,147 soybean processing jobs and 425 biodiesel jobs within the state.

“Soybeans and soybean-related industries contribute approximately 7 percent to Iowa’s GDP,” says Debi Durham, executive director of IEDA and the Iowa Finance Authority. “From biofuels to animal feed, soybeans are integral to Iowa’s agriculture and manufacturing industries and ultimately the state’s overall economic prosperity.”

‘Pillar’ of strength

In the final analysis, Showalter says there’s isn’t enough attention paid to Iowa soybean production and its overall impact.

“Tens of thousands of people in Iowa work in agriculture in addition to the farmers. From retail service to equipment maintenance and manufacturing to crushing facilities and transportation; all of these provide countless, nice paying jobs for Iowa citizens,” he says. “Soybean production and processing are a pillar that help hold up the Iowa economy.”

Soybeans are a boon to Iowa communities, notes ISA At-Large Director Aimee Bissell.

“Soybean farmers in Iowa may only make up a small percentage of the population but their impact on the state’s economy is huge,” she says. “As an agricultural state, Iowa soybeans are a commodity that helps connect the rural and urban communities. This connection drives our economy in a positive direction.”

Contact Jeff Hutton at jhutton@iasoybean.com