Biden’s Biofuel Push Risks Dethroning Corn as King of US Crops

American farmers will plant more corn than soybeans in 2024 – as they have in most years for over a century. But beyond that, a green diesel boom threatens to dethrone the king of all crops.

President Joe Biden’s decarbonization plan and the huge subsidies it offers to green energy are boosting demand for soybean oil, key to renewable diesel production. That means the old adage that the U.S. farmer likes to plant corn could become history, with soy taking the No. 1 spot in the future.

“Most would see a future where that would be the case,” said Paul Maass, chief executive officer of Omaha, Nebraska-based crop handler Scoular Co.

The biofuels push has already unleashed a race to build soybean processing plants, with companies including Cargill Inc. and Bunge Global SA planning to expand capacity. The U.S. currently has more than 20 projects to increase the so-called crush, which produces soy oil and meal used in animal feed.

“When you look at all the crush facilities that have been announced and are being built, you’re going to need more acres,” Maass said in an interview at the National Grain and Feed Association’s annual event in Orlando last week.

In addition to booming demand for soybean oil, corn demand has been jeopardized by the proliferation of electric vehicles. More EVs mean less grain ethanol is needed in transportation.

American farmers have planted more soybeans than corn only in two out of over 100 years. The last time that happened was in 2018, when the soy area exceeded that of corn by a mere 500,000 acres. The other occasion was in 1983, near the beginning of a farm crisis.

Tags: corn, soybean, USA