Markets are heating up for soybean oil. Much like the ethanol boom of the early 2000s, the United States has seen a rapid expansion of soybean-crushing facilities and growing demand for soybean production.
By 2027, the U.S. soybean crush capacity is expected to increase by 23%, according to a report by CoBank. The expansion is largely driven by the growth of the food processing and biofuels industries.
“When you build these processing facilities, you create a local demand for the crop,” said Chad Hart, an economist with Iowa State Extension. “That boosts the local economy and creates an incentive to produce more crops to meet that demand.”