Soybeans add to state's economy
Raising and crushing soybeans and refining soybean oil contributes $17.65 billion in sales output within the Illinois economy, according to the Economic Contribution of the Illinois Soybean Industry.
The report from Informa Economics IEG, funded by the Illinois Soybean Association (ISA) checkoff program, describes the critical importance of soybeans to the state’s economy based primarily on 2016 data.
Illinois consistently ranks as a top soybean-producing state. The record 2016 crop yielded nearly 593 million bushels and led the U.S., according to USDA data.
“Illinois excels at raising soybeans, which add value to the Illinois economy,” says Craig Ratajczyk, ISA CEO. “The soybean value chain contributes $7.48 billion to gross state product (GSP), which measures value added through economic processes. For Illinois soybeans, that value is added when whole soybeans are crushed and the oil is refined within the state.”
The values in the report capture the economic contribution of the soybean industry by accounting for multiple impacts:
- Direct economic impacts from soybean farming, crushing and oil refining.
- Indirect impacts to upstream industries, including farm inputs like seed and equipment.
- Induced impacts from spending labor income and profits generated by the direct and indirect impacts, such as benefits to housing, medical and grocery industries.
“The soybean industry also creates a strong economic ripple effect in Illinois,” Ratajczyk says. “The value chain has a 2.75 multiplier effect, meaning that for every $1 in gross product generated by the Illinois soybean industry, another $2.75 is created. The job multiplier is even stronger. Every job within the soybean value chain supports another 5.53 jobs elsewhere in the state’s economy.”