What Work Is Being Done On The Top Soybean Challenges?
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Critical Issues Hub

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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March 27, 2026
Record Renewable Volume Obligations Announced
The Administration announces record Renewable Volume Obligations for biomass-based diesel of 5.4-5.5 billion gallons, a 60+% increase from 2025 volumes. The rule also reallocates 70% of retroactive 2023-2025 small refinery exemption volumes EPA took action on last year in addition to the 2026-2027 compliance years. Both actions are heralded by national and state soybean associations that long advocated for larger obligations to boost soybean oil demand and prices.
Learn More
March 13, 2026
Ag Groups Urge Fertilizer Duty Withdrawal
ISA joins the American Soybean Association and 64 ag groups urging fertilizer makers Mosaic and J.R. Simplot to withdraw support for duties on phosphate imports from Morocco and Russia, arguing the policy inflates costs and undermines fertilizer price stability for U.S. farmers.
March 12, 2026
Lawmakers Urge Farmer Incentives in 45Z Rule
Republican lawmakers, including Sen. Ernst and Rep. Miller-Meeks, sent a letter to Treasury, USDA and DOE thanking the Trump administration for advancing the 45Z rule and urging the final rule to reward farmers for conservation practices. ISA supports the effort and encouraged Iowa’s congressional delegation to sign on.
Read the letter here
March 02, 2026
Global Fertilizer Trade Disrupted as Strait of Hormuz Closes
Virtually all commercial shipping has been halted through the world's most critical energy and fertilizer corridor.
February 18, 2026
Soybean Acreage Projection Increases
CoBank projects soybean acreage up nearly 6% to 86 million acres amid prospects better relative returns and renewable fuel demand prospects; rice faces the steepest acreage decline.
February 09, 2026
Federal Aid Won't Offset Losses
Texas A&M economists Dr. Joe Outlaw and Dr. Bart Fischer say average losses total roughly $300 per acre for corn and soybeans. Federal aid offsets just 35%–45% of losses, leaving balance sheets under water and producers choosing between equity erosion, additional borrowing, or exiting the business.
February 04, 2026
Additional Chinese Purchase Commitments
President Trump visits with Chinese President Xi; China agrees to buy 8 additional metric tons of U.S. soy; soybeans rally 35 cents on the news.
February 03, 2026
45Z Clean Fuel Production Credit Updates
U.S. Department of the Treasury releases updated proposed guidance implementing critical improvements to the 45Z Clean Fuel Production Credit, including changes supporting domestic feedstocks like U.S. soybean oil.
January 12, 2026
USDA Releases Unexpected Soybean Supply Outlook
USDA’s latest World Agricultural Supply and Demand Estimates report shows higher-than-expected soybean supplies, with national yield holding at 53 bpa while increased acreage boosts 2025 production by 9 million bushels to 4.26 billion. Ending stocks rise to 350 million bushels and the 2025/26 season-average price forecast declines 30 cents to $10.20 per bushel.
December 31, 2025
USDA Announces Farmer Bridge Assistance Payment Rates
USDA released payment rates for the Farmer Bridge Assistance Program, advancing a one-time relief effort to stabilize farm finances ahead of the 2026 planting season. The initiative will deliver $11 billion in direct assistance, including $30.88 per acre for soybean farmers, as part of a broader $12 billion support package.
December 31, 2025
ASA Seeks Immediate Biofuel Policy Action
The American Soybean Association says the $30.88 per-acre Farmer Bridge Assistance Payment is insufficient to offset trade losses and urges the administration to take immediate action to support domestic soybean markets. Priorities include finalizing EPA’s biofuel blending requirements, applying RIN credit adjustments for imported feedstocks and issuing timely 45Z tax guidance.
December 08, 2025
USDA Announces Farmer Bridge Assistance Program
The program provides $11 billion in targeted, one-time economic assistance to row crop farmers impacted by continued disruptions to global export markets and input suppliers.
Learn More
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.
Learn More
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. 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.

 

Tracker

Water Quality

Water quality is a growing priority for Iowa soybean farmers and rural communities. Farmers across the state are implementing conservation practices and management strategies to reduce nutrient loss, improve soil health and protect Iowa's water resources while maintaining productive and profitable operations. Click here to view the water quality impact report.

Through investments in cover crops, wetlands, saturated buffers, bioreactors and other conservation practices, farmers are making measureable progress toward improving water quality.

ISA believes incentive based conservation programs, technical assistance and collaboration among farmers, communities and policymakers is the most effective way to advance water quality goals.

 

Cover Crop Guide

Key Facts

  • More than 4 million acres of cover crops are planted annually in Iowa.
  • Conservation practices such as cover crops, bioreactors, saturated buffers, wetlands and reduced tillage help improve water quality.
  • Farmers continue to expand participation in watershed projects and conservation partnerships across the state.
  • Voluntary, incentive-based conservation programs help accelerate adoption of proven water quality practices.

What ISA Is Doing

  • Advocating for increased conservation funding and technical assistance programs.
  • Support farmer-led adoption of proven conservation practices such as cover crops.
  • Building partnerships with farmers, local communities, conservation organizations and policymakers to advance practical water quality solutions.

 

Biofuels

Biofuels have become one of the most significant drivers of soybean value. Since the advent of the renewable fuel standard, the value of soybean oil has grown to nearly half the value of the bushel and is directly responsible for the recent expansion of soybean crush capacity in Iowa and across the Midwest. Federal, state and international biofuels policy decisions directly influence soybean prices and long-term demand for soybean oil. Strengthening the Renewable Fuel Standard (RFS), reducing small refinery exemption and ensuring that soybeans are not saddled with high land use change penalties are key levers in ensuring that soybean oil can remain a viable, long-term feedstock in these markets.

Key Facts

  • In 2026, the EPA finalized the largest renewable volume obligation on record. This represents nearly a 65% increase over 2026.
  • Iowa crushes approximately 85% of our soybean crop, positioning the state as a key supplier of feedstock to the growing biofuel industry.
  • Growing the RFS renewable volume obligation is the single most effective way to increase demand for soybean oil and thus remains a core priority of the Iowa Soybean Association.
  • Biofuels production supports 10% of the value of every U.S. bushel of soybeans.
  • Soy-based biodiesel, renewable diesel and jet fuel reduce GHG emissions by more than 50% compared to petroleum diesel according to the U.S. EPA.

What ISA Is Doing

  • Urged the administration to finalize the 2026-27 RVO levels.
  • Advocating for reallocation of Small Refinery Exemptions (SREs) to maintain integrity of the RFS.
  • Pushing for swift implementation of federal biofuels policies, like 45Z, to boost soybean oil demand.
  • Promoting alternative carbon intensity calculations for soybeans that would boost the value of climate smart agriculture by 5x under programs like 45Z.
  • Developing alternative carbon footprint calculation methods for used cooking oil, a feedstock that is being widely imported and has grown as a key competitor with soybean oil.
  • Developing and advocating for new indirect land use change methods that reduce the penalty on soy, improving the crops carbon footprint score and helping grow market share.
  • Leading a cross-supply chain effort to reduce the cost of compliance with new traceability requirements passed by the California Air Resources Board which could require field level traceability when the crop is used to produce biofuel that is being sold to California.
  • Collaborating with other commodity and biofuel production organizations to create more opportunities for the biofuel market to incentivize infield and edge of field conservation practices.
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

  • Urging fertilizer manufacturers Mosaic and J.R. Simplot to withdraw support for countervailing duties on phosphate imports from Morocco and Russia.
  • 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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