August 30, 2023

 

New study finds US soybean industry has US$124 billion impact on US economy

 

 

The National Oilseed Processors Association (NOPA) and the United Soybean Board (USB) in the United States have announced the availability of a new study, "The Economic Impact of the U.S. Soybeans & End Products on the U.S. Economy," that examines the value of the US soybean industry.

 

To develop the study, NOPA and USB commissioned LMC International Ltd., an independent economic consulting firm specializing in global agricultural commodity and agribusiness sectors.

 

NOPA president Thomas Hammer said: "As indicated by this study's findings, the economic contributions of the soybean processing and refining sectors to the US economy are substantial, connecting soybean farmers with end users. Soybean processors convert soybeans into meal and oil. These value-added products are used in food, feed, industrial products and biofuels, supporting billions of dollars in domestic wages and tens of thousands of good paying jobs in the United States."

 

The 33-page study analyses the soybean value chain's impact on the US economy based on data from crop years 2019/20 to 2021/22. As highlighted in the report summary, during this period:

 

    - The total economic impact on the US economy from the soybean sector averaged US$124 billion, including US$85.7 billion from soy production and US$9.8 billion from soybean processing — the US soy sector accounts for approximately 0.6% of the US gross domestic product;

 

The total wage impact of the sector averaged US$10 billion.

 

"It's reaffirming to see that the US soybean industry has such a tremendous impact on US farmers and the economy overall," says USB chair Meagan Kaiser. "When we think about soy's role in food security, renewable energy and more than 1,000 products on the market, it may be surprising to the everyday consumer how our product extends across multiple sectors. This report, funded by our US soybean farmers, allows soy as an often invisible ingredient to become a visible contribution and sustainable solution for our future."

 

Economic impacts highlighted in the study are quantified in terms of revenue, wages, jobs and the number of people dependent on the sector — all focused on the production, distribution and use of soybeans and soybean products, spanning across the value chain, from soybean farming and production to consumers and exports. Findings are presented, with educational intent, at the national and state level and by congressional district. The study also includes one-page summaries for key states where the soybean industry primarily operates.
 

- USB