The soybean industry is unique in its rate of growth, which has made soybeans a major factor in world trade and in the agricultural and economic sectors of the United States. Soybeans are now second in value and second or third in production area among crops produced in the United States.
Many factors account for the unprecedented rise in importance of soybeans. These include the shift in agriculture from animal power to mechanization, the development of synthetic fibers, shortage of vegetable oils, and a growing appreciation for the importance of well-balanced protein in human and animal diets.
Soybeans were grown to a small-extent for hay in many parts of the United States during the 19th century. Many states and the USDA had soybean production trials by the early 1900s. Breeding research and extension increased gradually. In 1936 a formal agreement for cooperation in research on soybean production and utilization was made between USDA and several state (university) agricultural experiment stations.
Meanwhile, several companies had encouraged farmers to produce soybeans by offering a guaranteed market. This led to the development of the soybean processing industry which now includes many large mills well-distributed over soybean production areas.
Throughout the last several decades there has been close cooperation between research groups, producers, and marketers which has made it possible to develop markets for the ever-increasing soybean production. Soybean interests have been active internationally for many years, including both research and market development.
The present soybean industry is the culmination of the efforts of many people and economic interests. Soybeans provide a vital alternative to farmers because of the strong market demand. Domestically, soybeans are the main source of dietary vegetable oils and of protein meals in animal feeds. Internationally, they are important components in the food and feed systems of many countries, and an important source of foreign currencies.