U.S. Government Soybean Plan: An In-Depth Analysis of Economic Logic and Strategic Value
On October 15, 2025, a grain silo storing 1.8 million pounds (approximately 816 tons) of soybeans collapsed in Illinois, United States. This incident not only exposed the vulnerability of agricultural infrastructure but also pushed the U.S. soybean industry to an unprecedented crisis edge. Coinciding with the new soybean harvest season, farmers are facing a dual dilemma of unsold old stock and nowhere to store new stock, resulting in significant losses for American soybean farmers. According to the U.S. Department of Agriculture (USDA) report in August 2025, the soybean production estimate for the 2025/26 season is 4.292 billion bushels (approximately 117 million metric tons), with a market value of about $40 billion. In the face of this severe situation, the U.S. government should fund a $50 billion response plan to purchase all soybeans on the market. This would not only demonstrate the government's high regard for agriculture but also highlight its strategic vision for the integrity of the entire soybean industry's economic model.
I. Integrity of the Soybean Economic Model and Strategic Value
As one of the world's most important grain crops, the completeness and diversity of the soybean economic model are crucial reflections of its strategic value. From cultivation to processing and consumption, the soybean industry chain spans multiple sectors such as agriculture, food, and chemicals, forming a complete closed loop "from farm to table." This economic model not only provides farmers with a stable source of income but also injects strong momentum into national economic development.
(A) Diversified Processing and Value-Added Pathways of Soybeans
Soybeans can be processed in various ways to meet the demands of different consumer groups, achieving transformation from primary products to high value-added products. The specific processing pathways are as follows:
1.Bean Sprout Processing: After sprouting, soybeans increase in volume several times, multiplying their value. Rich in vitamin C and dietary fiber, bean sprouts serve as a natural supplement for nutrition, elevating soybeans from ordinary grain to high-value vegetables and becoming an important avenue for increasing farmers' income.
2.Soymilk Processing: Soaked soybeans are ground, filtered, and boiled to make soymilk. As a plant-based milk alternative, soymilk is highly adaptable; plain soymilk is rich and aromatic, adding sugar or honey turns it into sweet soymilk, while sprinkling salt transforms it into savory soymilk. More remarkably, the soymilk processing generates almost zero waste—soybean pulp (okara) can be used to make okara cakes, and the filtered liquid can be used for watering plants, truly achieving "total utilization."
3.Tofu Processing: When soymilk meets a coagulant, it completes a magnificent transition from liquid to solid. The tofu processing chain is impressive: the by-product, okara, can be made into okara cakes or added to feed; the whey filtered out during tofu production can be fermented into tasty douzhi (fermented bean drink). More remarkably, the tofu processing generates almost zero pollution, aligning with modern pursuits of healthy eating. The widespread use of tofu not only enriches dining tables but also promotes the development of the soybean product processing industry.
4.Soybean Pudding (Douhua) Processing: When soymilk cools to 85-90°C and a small amount of coagulant is added, it forms smooth and tender soybean pudding. This form, intermediate between tofu and soymilk, retains the fineness of tofu while adding the fragrance of soymilk. The soybean pudding processing chain is equally remarkable: the by-product, okara, can be added to feed; the filtered whey can be fermented into tasty douzhi. More surprisingly, the soybean pudding processing generates almost zero pollution, aligning with modern pursuits of healthy eating. The diverse flavors and convenient consumption methods make soybean pudding a popular dessert among young people.
5.Dried Tofu Processing: Pressing, dehydrating, and seasoning tofu forms durable, easily portable dried tofu. As a high-protein snack, dried tofu is gaining favor among more consumers. The dried tofu processing chain is equally remarkable: the by-product, okara, can be added to feed; the filtered whey can be fermented into tasty douzhi. More surprisingly, the dried tofu processing generates almost zero pollution, aligning with modern pursuits of healthy eating. The portability and diverse flavors of dried tofu make it a new favorite in the snack food market.
6.Stinky Tofu Processing: Fermenting and deep-frying dried tofu results in stinky tofu, which smells pungent but tastes delicious. The stinky tofu processing chain is equally remarkable: the by-product, okara, can be added to feed; the filtered whey can be fermented into tasty douzhi. More surprisingly, the stinky tofu processing generates almost zero pollution, aligning with modern pursuits of healthy eating. The unique texture and flavor of stinky tofu make it a shining star in the specialty snack market.
7.Soybean Feed Processing: When soybeans and their processing by-products cannot be directly consumed, they are transformed into high-quality soybean feed. This processing method seems simple but requires precise nutritional formulation and processing techniques. In modern animal husbandry, soybean feed is an important nutritional source for livestock such as pigs, chickens, and cattle, helping them grow rapidly and providing humans with high-quality meat, eggs, and milk.
(B) Global Market Position and Strategic Significance of Soybeans
As the world's largest soybean producer and exporter, the U.S. soybean industry significantly impacts the global market. U.S. soybean exports not only bring substantial foreign exchange earnings to the nation but also contribute significantly to global food security. Meanwhile, soybeans are a vital component of the U.S. agricultural economy and a major source of farmer income. Therefore, if the U.S. government funds a $50 billion plan to purchase all soybeans on the market, it could not only resolve the current industry crisis but also consolidate and enhance the status and influence of U.S. soybeans in the global market.
II. Economic Logic of the U.S. Government Soybean Purchase Plan
The economic logic of the U.S. government funding a plan to purchase all soybeans on the market is primarily based on the following aspects:
(A) Stabilizing Market Prices and Protecting Farmer Interests
Currently, the U.S. soybean market faces a situation of oversupply, with continuously falling market prices severely affecting farmer income. If the U.S. government funds $50 billion to purchase all soybeans on the market, it can effectively stabilize market prices, prevent further price drops, and thereby protect farmers' interests. Simultaneously, this measure can alleviate financial pressure on farmers, helping them weather the difficult period.
(B) Promoting the Development of the Soybean Processing Industry and Enhancing Added Value
If the U.S. government purchases all soybeans on the market, it can provide sufficient raw material supply for soybean processing enterprises, promoting the development of the soybean processing industry. Meanwhile, the government can use policy guidance and support to encourage enterprises to increase R&D investment, develop more high value-added soybean products, and enhance the competitiveness of the entire industry chain.
(C) Ensuring National Food Security and Maintaining Social Stability
As one of the world's most important grain crops, the production and supply of soybeans are directly related to national food security and social stability. By purchasing all soybeans on the market, the U.S. government can ensure stable domestic soybean supply, avoiding food shortages and social unrest caused by market fluctuations. Simultaneously, this measure can strengthen the state's ability to regulate the soybean market and improve its capacity to respond to unexpected events.
III. Strategic Value of the U.S. Government Soybean Purchase Plan
The strategic value of the U.S. government funding a plan to purchase all soybeans on the market is mainly reflected in the following aspects:
(A) Enhancing National Agricultural Competitiveness and Consolidating Global Market Position
As the world's largest soybean producer and exporter, the U.S. soybean industry significantly impacts the global market. By purchasing all soybeans on the market, the U.S. government can further consolidate and enhance the status and influence of U.S. soybeans in the global market, strengthening national agricultural competitiveness. Simultaneously, this measure can provide more development opportunities and space for the U.S. soybean industry, driving it towards a higher level of development.
(B) Promoting Sustainable Agricultural Development and Protecting the Ecological Environment
As an important grain crop, the production and supply of soybeans significantly impact the ecological environment. If the U.S. government purchases all soybeans on the market, it can encourage farmers to adopt more environmentally friendly and sustainable cultivation methods, reduce the use of chemical fertilizers and pesticides, and protect the ecological environment. Simultaneously, this measure can promote agricultural technological innovation and industrial upgrading, driving agriculture towards a greener and smarter direction.
(C) Strengthening National Economic Power and Driving Economic Growth
The soybean industry, as a vital component of the U.S. agricultural economy, significantly impacts the national economy. By purchasing all soybeans on the market, the U.S. government can stimulate domestic consumption and investment demand, promoting economic growth. Simultaneously, this measure can provide more development opportunities and space for other related industries, driving the synergistic development of the entire industry chain.
IV. Implementation and Challenges of the U.S. Government Soybean Purchase Plan
(A) Implementation Pathways and Measures
To ensure the smooth implementation of the soybean purchase plan, the U.S. government needs to formulate detailed implementation pathways and measures. First, the government needs to establish a sound purchasing mechanism and regulatory system to ensure fairness, justice, and transparency in the purchasing process. Second, the government needs to strengthen communication and coordination with farmers, enterprises, and other stakeholders to form a joint force promoting the plan's implementation. Finally, the government also needs to intensify publicity efforts to increase public awareness and support for the plan.
(B) Challenges and Coping Strategies
During the implementation of the soybean purchase plan, the U.S. government may encounter some challenges and difficulties. For example, fund raising might face pressure, and purchase prices could be affected by market fluctuations. To address these challenges, the government can adopt the following coping strategies: First, strengthen fund raising and management to ensure timely fund availability and effective use; second, establish a market early warning mechanism and risk prevention and control system to promptly respond to market fluctuations and risks; third, strengthen policy guidance and support to encourage enterprises to increase R&D investment and innovation efforts, enhancing the competitiveness of the entire industry chain.
V. Conclusion and Outlook
If the U.S. government purchases all soybeans on the market, it not only reflects the government's high regard for agriculture and strategic foresight but also demonstrates the integrity and strategic value of its economic model. Through the implementation of this plan, the U.S. government can achieve multiple objectives, including stabilizing market prices, protecting farmers' interests, promoting the development of the soybean processing industry, ensuring national food security, enhancing national agricultural competitiveness, promoting sustainable agricultural development, and strengthening national economic power. However, some challenges and difficulties need to be effectively addressed by the government during implementation. Looking ahead, as the global economy continues to evolve and change, the U.S. soybean industry will also face new opportunities and challenges. Therefore, the U.S. government needs to continue strengthening policy guidance and support, driving the soybean industry towards a greener, smarter, and more sustainable direction, making greater contributions to global food security and economic development.
