The Importance of the U.S. Grain Standards Act for Soybean Farmers

Strategic Insights -

The U.S. Grain Standards Act, which has been in place since 1916, is crucial for the success of U.S. soybeans in the international marketplace. The act authorizes the Agricultural Marketing Service's (AMS) Federal Grain Inspection Service (FGIS) to establish official marketing standards for grains and oilseeds, including soybeans. FGIS's standards and services have created a high level of trust among international customers, who rely on the quality and impartiality of U.S. grain inspections.

Key Takeaways:

  • The U.S. soybean industry has a profound, positive impact on the U.S. economy, with $124 billion in economic impacts, including $4 billion in wages and over $80 billion in economic impacts.
  • The U.S. soybean industry is the largest agricultural export in the U.S., with 86 million acres of soy harvested in 2024 and production of 4.4 billion bushels.
  • The Federal Grain Inspection Service (FGIS) provides trusted and reliable grain inspection and marketing efforts, which have created a high level of trust among international customers.
  • The simplicity and consistency of FGIS's standards have allowed for the development of extensive futures markets for U.S. products, promoting price discovery and liquidity.
  • The removal of "soybeans of other colors" (SBOC) as a grade-determining factor for U.S. soybeans in July 2023 was a win for soybean farmers and an example of industry collaboration.
  • Reauthorization of the U.S. Grain Standards Act is vital for the continued success of U.S. soy in the international marketplace.

Statistics:

  • 86 million acres of soy were harvested in 2024.
  • Production of 4.4 billion bushels in 2024.
  • The U.S. soybean industry has over $4 billion in wages and over $80 billion in economic impacts, according to a study by the United Soybean Board (USB)/Soy Checkoff and National Oilseed Processors Association (NOPA).
  • The total economic impact of the soybean value chain is $124 billion.
  • 26 affiliated state soybean associations represent nearly 500,000 farmers in the 30 primary soybean-producing states.
  • The U.S. soybean industry has a strong relationship with FGIS, and when issues arise, they can be addressed in a manner that meets the needs of U.S. farmers while maintaining the integrity of the standards.

Sources:

  • United States Department of Agriculture (USDA), Agricultural Marketing Service, (2022). "Study of Soybeans of Other Colors and the Impact on End-Use Functionality in 2021-2022 Market Samples."
  • Brandon Wipf, testimony before the Senate Agriculture, Nutrition and Forestry Committee, July 29, 2025.
  • American Soybean Association (ASA), (2020). Letter to the Senate Agriculture Committee regarding reauthorization of the U.S. Grain Standards Act.
  • United Soybean Board (USB)/Soy Checkoff and National Oilseed Processors Association (NOPA), (no date). Study on the economic impact of the U.S. soybean industry.