What Work Is Being Done On The Top Soybean Challenges?
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ISA's impact on issues critical to farmer profitability

Iowa soybean farmers are navigating a rapidly shifting landscape marked by trade uncertainty, elevated input costs, evolving biofuels policy and the ongoing need for effective economic support.

This page provides an overview of the most pressing challenges affecting the soybean industry and details the Iowa Soybean Association’s efforts to address them. Each section breaks down what’s at stake and how ISA is working to safeguard opportunities for growers and strengthen the future of U.S. soy.

Key Events Timeline

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November 12, 2025
ASA Pushes for Final Biofuel Policy Decisions
The American Soybean Association urges the administration to finalize key biofuel policies to boost domestic soy demand. Priorities include approval of record 2026–2027 RFS volumes, full reallocation of waived RVOs and timely Treasury guidance on the updated 45Z credit to ensure strong support for U.S. agricultural feedstocks.
November 01, 2025
Market Reaction Deepens
China is expected to buy under 20 MMT of U.S. soybeans, well below recent averages. Larger South American purchases reduce China’s remaining needs. U.S. basis and port prices rise slightly, nearing Brazilian levels, yet China has not signed any new U.S. contracts since the announcement.
October 30, 2025
Leaders Announce Major Soy Deal
Trump and Xi unveil commitments including 12 MMT of near-term Chinese purchases and 25 MMT annually through 2028. Iowa Soybean Association leaders welcome the move, saying it restores momentum after months of stalled trade and helps rebuild long-term confidence for farmers seeking dependable access to China.
October 29, 2025
Pre-Meeting Purchase Rumors Swirl
Anticipation grows as rumors indicate China may pre-buy three soybean cargoes ahead of a possible 5–10 MMT purchase for 2025–26. These volumes remain below historical norms, highlighting continued uncertainty and intensifying focus on the upcoming Trump–Xi meeting for clearer guidance on future trade patterns.
October 24, 2025
USTR Launches Phase One Review
The USTR opens a Section 301 investigation into China’s adherence to the Phase One Agreement, examining whether commitments were fully met. The review will shape potential U.S. responses and underscores ongoing scrutiny of bilateral trade obligations during a period of heightened economic and geopolitical tensions.
October 02, 2025
ISA Presses for Federal Action
ISA leaders urge expedited China trade progress, immediate producer support, and finalization of RVO decisions to stabilize soybean markets. They warn that delays during the crucial October–February selling window risk undermining long-standing global relationships and limiting farmer confidence as 2026 planting decisions approach rapidly.
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October 01, 2025
Harvest Brings Strong Yields
Producers across Iowa report strong soybean yields, frequently reaching the 60–70 bushel range, with many surpassing 80 bushels per acre. The robust crop offers welcome optimism as farmers navigate significant trade uncertainty and shifting international purchasing patterns affecting long-established export channels.
September 24, 2025
Argentina Aid Alters Soy Trade
A U.S. economic assistance package enables Argentina to suspend a 26% export tax, leading China to increase Argentine soy purchases. The shift reduces U.S. market opportunities during peak demand months and allows China to maintain supply continuity until Brazilian harvest volumes become available in early 2026.
June 01, 2025
ASA Raises Alarm on China Buyers
With no new-crop U.S. soybean commitments from China, national and state associations intensify pressure on the administration to prioritize soybeans in broader negotiations. They highlight risks of prolonged market exclusion as other issues dominate the U.S.–China agenda, urging renewed focus on maintaining agricultural competitiveness.
April 15, 2025
Planting Begins Across Iowa
Iowa farmers begin planting 9.6 million soybean acres and 13.5 million corn acres, as reported by USDA NASS. Despite market uncertainty, growers prepare for the season with cautious optimism, balancing production needs with evolving global demand and ongoing trade tensions that shape price expectations.
April 02, 2025
Trade Liberation Day Launched
President Trump initiates a new tariff framework, including a 10% baseline on most imports, aiming to address trade imbalances and strengthen U.S. leverage in global negotiations. The policy marks a significant shift in trade strategy and signals heightened emphasis on reshaping long-term economic relationships.
January 01, 2020
Phase One Agreement Signed
The U.S. and China sign the Phase One Agreement, targeting structural trade issues and establishing major Chinese agricultural purchase commitments. The deal becomes a central reference point for future trade expectations and a benchmark for assessing compliance amid fluctuating geopolitical and economic conditions.
Trade

U.S. soybean farmers rely heavily on global markets, with nearly half of all soybeans exported each year. Iowa’s crop is high-quality and abundant, but ongoing trade tensions—especially with China—are limiting access to key buyers during the most critical sales window (October–February). Without renewed trade relationships, U.S. soy risks losing long-held market share to global competitors, threatening farm revenue, local communities and the state’s broader economy.

Key Facts

  • Nearly 50% of U.S. soybeans (4.3B bushels in 2024) are exported.
  • Soybeans are the top U.S. food export, representing 14% of all farm goods exported.
  • China buys 60% of global soybean exports, but U.S. market share has fallen from 41% (2016) to ~20% (2024).
  • China suspended U.S. soybean purchases from June–August 2025 due to tariff tensions.
  • U.S. agricultural exports to China are projected to fall to $17B in 2025 (down 30%) and $9B by 2026, the lowest since 2007.
  • Chinese soybean imports from the U.S. dropped 80% from 2024 to 2025.
  • Iowa could lose up to $1.5B from reciprocal tariffs.
  • Global competitors are filling the void left by the U.S., increasing risk of becoming a residual supplier.

What ISA Is Doing

  • Engaging USDA, congressional agriculture committees and appropriators to elevate soybean trade priorities.
  • Rebuilding and expanding trade relationships through farmer-led missions to Korea, India, Japan, Mexico, Vietnam, EU, China, Morocco, Philippines, Guatemala, Chile, Costa Rica, Thailand and others.
  • Advocating aggressively on the impacts of tariffs on Iowa farmers and U.S. ag exports.
  • Sharing real-world farmer stories with legislators to underscore lost income and shrinking markets.
  • Promoting expansion of domestic soybean meal use via growth in Iowa’s poultry, dairy, egg, aquaculture and livestock sectors.
Economic Assistance

Federal economic assistance is not a substitute for trade—but it is a crucial bridge that helps farmers withstand income losses caused by stalled markets and global trade disputes. With declining cash prices, historically weak basis, and rising production costs, timely support is necessary to maintain farm solvency and rural economic stability.

Key Facts

  • Economic assistance and trade agreements are not mutually exclusive; both are needed.
  • Assistance serves as a bridge, not a replacement, for lost markets.
  • Ongoing trade disputes are creating long-term risk of permanently reduced market share.
  • Farmers need revenue now to offset low prices amid high input costs.
  • U.S. soybean competitors are benefiting while U.S. access remains constrained.

What ISA Is Doing

  • Calling for expedited federal economic assistance to offset near-term losses caused by unresolved trade conflicts.
  • Coordinating with national soybean and commodity partners to communicate urgent needs to USDA and congressional decision-makers.
  • Ensuring farmer voices are heard by policymakers about the financial pressure created by lost markets and rising costs.
Biofuels

Biofuels—particularly biodiesel and renewable diesel—are critical drivers of soybean value, energy security, and environmental benefit. Federal biofuels policy decisions directly influence soybean prices and long-term demand for soybean oil. Strengthening the Renewable Fuel Standard (RFS) and ensuring robust Renewable Volume Obligations (RVOs) are essential to supporting farmers and the state’s biofuels industry.

Key Facts

  • Biodiesel and renewable diesel reduce GHG emissions by 50% or more compared to petroleum diesel.
  • EPA has proposed 5.61B gallons of biomass-based diesel for 2026 RVOs—a 65% increase over 2025.
  • EPA also proposes including 5.95B gallons of exempted gasoline and diesel in RVO calculations for 2026–27.
  • Biofuels production supports 10% of the value of every U.S. bushel of soybeans.
  • Making federal RVOs permanent would strengthen demand, stabilize prices, and reinforce Iowa’s national leadership in biodiesel.

What ISA Is Doing

  • Urging the administration to finalize and make permanent the proposed 2026 RVO levels.
  • Advocating for reallocation of Small Refinery Exemptions (SREs) to maintain integrity of the RFS.
  • Pushing for swift implementation of federal biofuels policies to boost soybean oil demand.
  • Continuing to promote domestic growth in soybean meal utilization tied to expanding livestock industries.
Input Costs

Farmers are facing the highest production costs in decades. Fertilizer, fuel, seed, and interest rates have all surged since 2020, while soybean prices have remained flat and basis levels have reached historic lows. This widening cost-price gap is squeezing farm margins and threatening profitability across the soybean sector.

Key Facts

  • Since 2020: Seed costs up 18%, fuel and oil up 32%, fertilizer up 37% and interest expenses up more than 70%.
  • Fertilizer prices remain elevated after the 2022–23 spike.
  • Cash soybean prices have fallen sharply due to weak basis.
  • Consolidation in agriculture may be influencing input pricing—USDA examination is warranted.

What ISA Is Doing

  • Advocating for passage of the Fertilizer Research Act, requiring USDA to analyze competition and pricing trends in the fertilizer market.
  • Pushing for deeper scrutiny into the causes of rising input costs across the agricultural supply chain.
  • Supporting legislation such as the MARA Act to expand U.S. aquaculture, increase demand for soy-based feed, and create new domestic markets.

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