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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.”
High-Oleic Soybeans Gain Ground
Consumer demands are also shifting soybean production needs. As consumers become more health conscious, high-oleic oils have gained popularity within the food industry.
High-oleic oils are high in monounsaturated fats, making them more appealing to consumers invested in heart-healthy choices. “Food manufacturers and restaurants are transitioning to oils that can meet that consumer demand without sacrificing performance,” said Roger Theisen, a marketing manager for Pioneer specialty crops.
While high-oleic soybeans have been on the market since the early 2010s, price premiums driven by increased demand have made them a more viable option. In 2023, nearly 20% of soybean acres in Indiana were dedicated to high-oleic varieties, according to the Indiana Soybean Alliance.
Companies Offer Options
High-oleic soybeans are available through Pioneer (Plenish) and Beck’s Hybrids (Soyleic). To bring its Vistive Gold Xtend soybeans to market, pending global regulatory approval, Bayer has entered into a commercial agreement with Perdue Agribusiness. Upon that approval, Bayer plans to make Vistive Gold Xtend soybeans commercially available for 2026 planting, focusing initially on the Mid-Atlantic region.
Theisen said Corteva offers 19 Pioneer brand Plenish high-oleic soybean varieties as part of the Pioneer A-Series product line, ranging from 1.9–4.3 maturity groups. “With this broad germplasm library, we can bring a lot of products that meet growers’ needs,” he said. “We can offer a product in their growing region that matches yields of their commodity counterparts, but also agronomic concerns they may have on their farm, like brown stem rot, soybean cyst nematode, or white mold.”
New for the 2025 season, Corteva will offer three Pioneer brand Plenish high-oleic soybean varieties with the Enlist E3 trait, which widens weed management options. “They will be offered in very limited quantities and geographies,” Theisen said. “It is still a stewarded product, and because of that, it will be kept in a closed-loop system domestically until we have global regulatory approval.”
When looking for a premium and selling to processors, growers will need a contract with a processor to sell high-oleic soybeans. For farmers raising Plenish soybeans, those contracts happen through Pioneer when purchasing their seed. “In September of 2025, we’re expecting processors will start to offer contracts in the marketplace for the 2026 crop year,” Theisen said.
Beck’s Hybrids added Soyleic as a high-oleic offering in 2024. Soyleic is a non-GMO, high-oleic trait developed by the University of Missouri and licensed by the Missouri Soybean Merchandising Council (MSMC). Beck’s Hybrids offers four Soyleic varieties, with maturity groups ranging from 2.3–3.3. Unlike Corteva, Beck’s leaves contracts in the individual grower’s hands. “We just try to be the seed company, because that’s what we know we’re good at,” said Trek Murray, Beck’s quality traits market manager. “We help push these programs and make them available to our customers, but we are not doing the contracting.”
For those interested in raising their own high-oleic soybeans for on-farm use in dairy rations, no contracts are needed, regardless of seed company. However, they must be kept separate from conventional soybeans.
Optimizing Dairy Rations With High-Oleic Soybeans
For years, soybean meal has been a staple in dairy rations as a source of high-quality protein and
energy from fat. However, conventional soybeans contain high levels of polyunsaturated fatty acid (PUFA), which can be detrimental to rumen microbes, disrupt normal rumen function, alter rumen fermentation, and lead to milk fat depression, said Dr. Adam Krull, dairy veterinarian and senior nutritionist with Pioneer.
While conventional and high-oleic soybeans have similar protein and fat content, they differ in their fatty acid profiles. “In conventional soybeans, less than 25% of the fat is oleic acid, and the remainder is mostly of linoleic acid,” Krull said. “In high-oleic soybeans, the percentage of oleic acid is closer to 75%, and less than 10% is linoleic acid.”
These differences have a direct impact on the dairy cow, as oleic fatty acids are more readily utilized to enhance milk fat synthesis, whereas PUFAs, when present at high levels, can significantly decrease overall milk fat production. “Linolelic acid can actually decrease the amount of fat a cow produces,” Krull said. “Dairies are paid on pounds of milk fat and milk protein and not just the volume of milk.”
A 2020 study conducted at Penn State compared normal soybeans with high-oleic-acid roasted soybeans fed at 5% and 10% of a cow’s diet. Soybean type and level had no effect on milk yield, but high-oleic-acid soybeans resulted in 0.17 units higher milk fat concentration and 0.2 pounds higher milk fat yield.
This can have an impact on a dairy’s bottom line. A June 2024 article in the Journal of Dairy Science found an increased profit when substituting 5% roasted whole high-oleic soybeans for conventional in a ration. The study compiled economic data from five studies on the use of high-oleic soybeans and found increased profit under all economic conditions from 2014–2020. In their analysis, a 2,000-cow dairy could realize a difference of $130,000 a year in profit given typical butterfat prices over that period.
Dennis Underwood, a dairy farmer in central New York state, said he has saved 70¢ per cow per day on purchased bag fat and bypass protein by feeding roasted high-oleic soybeans to his 1,700-cow dairy herd. Underwood grows 650 acres of his own high-oleic soybeans, as well as purchases them from three neighboring farms. “The guys we’re buying from get a $1.70 premium on their soybeans,” he said. “If I could raise them all myself, I’d save $1 per cow per day.”
Making the Switch
High-oleic soybean seed sells at a price comparable to normal seed and does not differ in yield, said Dennis Underwood, who feeds roasted high-oleic soybeans to his 1,700-cow dairy herd in central New York state. “In 2022,” he said, “we averaged 83 bushels per acre and won the regional yield contest for central New York.”
Matthew Chapman has converted all his soybean acres to high-oleic on the farm he operates with his brother in east-central Indiana. “We’re always looking for a niche product to separate ourselves from regular commercial corn and soybeans,” Chapman said.
Weed management is a top concern cited when considering the switch to high- oleic. The first year of weed management was a learning curve, Chapman said. “It was our fault,” he acknowledged. “We needed to plan ahead the previous fall, with tillage and herbicides right after corn harvest. As the soybean trait technology improves, it will just make it easier for other operations to adopt high-oleic soybeans.”
Mike Koehne said he has grown Plenish soybeans for six years and will plant them again in 2025. Koehne said he was drawn to growing high-oleic soybeans for premium, as well as their Roundup Ready 2 trait. “We were having weed issues we couldn’t control anymore in our non-GMO soybeans,” Koehne said. “High-oleic soybeans was a specialty niche that offered a premium, as well as other modes of action for weed control.”
Navigating Premium Variability
While the increased availability of local processing facilities may open opportunities to grow high-oleic soybeans, farmers may also experience turbulent premiums. As with any new or expanding market, it can take time to find the balance between supply and demand.
“It’s especially difficult when you can only create the supply once a year,” ISU’s Hart said. “You only get one shot for the crop, but the demand for the product is year-round. There’s already significant price swings for traditional soybeans. We will likely see even larger price swings for these more- sought-after varieties, like [high-oleic].”
Contract prices have fluctuated from 80¢ to more than $2 per bushel over the board price. “The premium is going to be something each farmer has to measure for their operation,” Chapman said.
Chapman delivers to ADM, with the end purchaser being Frito-Lay and Nestlé. He said he has seen a drop in premiums, from $2.20 to $1.75, in 2024. Koehne said he has also noted a drop in premiums, with 2024 at $1.25, and a drop to 80¢ per bushel for the coming 2025 season.
Increased acreages and high yields for the 2023 crop coupled with strong yields in 2024 have influenced premiums, said Ed Ebert, senior director of market development for the Indiana Soybean Alliance and the Indiana Corn Marketing Council. “You can get ahead of the demand if you have significant acreage coupled with really good yields,” he said. “With any product that is starting to gain traction in the market, it’s always a careful balance between supply and demand. And that’s certainly where we’re at right now in the evolution of this product.”
Identity Preservation
Premiums help cover the cost of identity preservation requirements. Since high-oleic soybeans have distinct genetic differences compared with commodity beans, they must be kept separate all along the value chain. “We store them in a separate bin, and use a separate auger, and we have to flush the combine out,” Koehne said. “But with the prices of the markets the way they are, anytime you can make a little bit more, it sure helps.”
Chapman said he has simplified identity preservation requirements by raising only high-oleic soybeans. “The cleaning of equipment can be an obstacle,” he said. “The first year, we chose an early variety, so we could harvest it first and didn’t have to clean out our equipment as we transitioned.”
Chapman said he has high hopes for the future of high-oleic soybeans. “As the market matures, we’re constantly finding new uses for high-oleic,” Chapman said. “Anytime we can use these bushels domestically and add value, it helps our overall soybean demand, and helps every farmer improve their bottom line.”
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