Economic Impact of Soybeans in the U.S., and GE Percentage
It has long been assumed that the production and processing of soybeans has had and is having a significant impact on the U.S. economy. Now comes an Aug. 2023 report from LMC International titled “The Economic Impact of U.S. Soybeans and End Products on the U.S. Economy–2023 Update” {commissioned by the National Oilseed Processors Assoc. [NOPA] and the United Soybean Board [USB]} that confirms this. Pertinent points from the report follow.
• Over the 2019/20-2021/22 period, the total contribution of the soybean sector to the U.S. economy averaged $124 billion annually.
• In the 2021/22 period, a sharp rise in the price paid for soybeans resulted in a contribution of $160 billion to the U.S. economy. This is equivalent to 0.6% of the U.S. Gross Domestic Product [GDP].
• The share of the economy contributed by the soybean sector varied by state. In Arkansas and Mississippi, the average share of each state’s GDP was >3% and >2%, respectively, over the 3-year period.
• In Arkansas, Louisiana, Mississippi, and Tennessee, the direct economic impact averaged an estimated 1,958, 1,778, 1,315, and 946 million dollars, respectively.
• Soybean production or farming [includes all inputs used in soybean farming] represents about 70% of the economic impact of the soy value chain, and about 50% of the total paid jobs in the soybean sector.
• The results reported in this publication indicate the substantial importance of the soybean sector to the U.S. economy.
An Oct. 2023 USDA-ERS report titled “Adoption of Genetically Engineered Crops in the U.S.” provides the following information.
• Genetically Engineered [GE] seeds of crop plants became commercially available in 1996 in the U.S., and adoption rates of GE crops increased rapidly in the following years through 2023.
• GE crops are classified as herbicide-tolerant [HT], insect-resistant [Bt], or stacked varieties that have resistance to both herbicides and insects.
• The vast majority of GE soybeans are HT, but Bt soybeans could be in the offing.
• U.S. acreage planted to GE soybeans rose from 17% in 1997 to 95% in 2023. In Ark. and Miss., HT soybean varieties were planted on 98% and 99% of the acreage, respectively, in 2023.
• Clearly, the use of HT soybean varieties has been accepted by producers who use them to simplify and enhance weed control in the crop.
New and/or forthcoming technologies such as Renewable Diesel and Bt soybean varieties will likely result in an increased economic impact from U.S. soybeans in the future.
Composed by Larry G. Heatherly, Oct. 2023, larryh91746@gmail.com