LUBBOCK, TX – Expanding domestic soybean crush capacity is reshaping where U.S. soybeans are processed and creating additional demand for oil used in renewable fuels, according to Clean Fuels Alliance America.
Vice President of Federal Affairs Kurt Kovarik told the Agribusiness Report that recent biofuel policy has helped support investment in new and expanded crush plants. He pointed to projects in Wisconsin and Illinois and new soybean-oil shipments from the Midwest to the West Coast.
Kovarik said the industry has shifted from crushing roughly 40% of U.S. soybeans and exporting 60% to crushing about 65% and exporting 35%. Those figures are his assessment of the changing market structure.
More domestic crushing keeps additional soybean value inside the United States while producing soybean oil for renewable diesel and meal for livestock feeding and export markets.
Future expansion will depend on biofuel demand, crush margins, export competition and regulatory certainty. Kovarik said stable Renewable Fuel Standard policy is important for companies considering large processing and fuel investments.
Farm-Level Takeaway: Expanding domestic crush could strengthen soybean demand while producing more oil for renewable fuels and meal for livestock markets.