Subsidies for soybean farming

In 2025, subsidies for soybean farming are estimated to total $66.3 million, rising from the prior year. Volatility has characterized recent outlays, as policy makers continue to balance fluctuating global crop prices and domestic support programs. In the wake of pandemic-era stimulus and additional support measures following the Ukraine conflict, government budget allocations for soybean subsidies have moderated. In 2025, falling soybean prices are set to increase the need for supplemental payments.

Over the five years to 2025, subsidies for soybean farming declined at an annualized rate of 18.5%. This period encompassed significant policy and market changes. After the 2018 Farm Bill, soybean farmers had the ability to select annually between the Price Loss Coverage (PLC) and Agricultural Risk Coverage (ARC) programs for crop insurance purposes. The flexibility to update PLC payment yields offered enhanced risk management, but generally high commodity prices limited the frequency and magnitude of government payouts.

Macroeconomic factors played a role during this period. High global demand, supply chain disruptions and geopolitical conflicts increased commodity prices, limiting the activation of support programs based on price or revenue shortfalls. Environmental volatility and trade policy uncertainty—exacerbated by international sanctions and tariffs—also influenced subsidy disbursement. However, these factors failed to offset the downward pressure on outlays brought by strong market prices and policy reforms that capped or reduced direct support.

Overall, the contraction in government outlays for soybean subsidies over 2020-2025 reflected the combined influence of high farmgate prices, evolving federal policy mechanisms and external market shocks, with net payments decreasing from $184.0 million in 2020 to $66.3 million in 2025.