The U.S. soybean sector is undergoing a quiet revolution, driven by the growing demands of the renewable diesel market. Rather than simply increasing the volume of soybeans crushed, processors are focusing on getting more oil out of every bushel. This shift toward greater extraction efficiency is transforming how the industry meets demand while maintaining processing margins and managing meal oversupply.

Since the initial biodiesel boom in the late 2000s, soybean oil production in the U.S. has grown at a steady pace. But a more significant change began around the 2020/21 marketing year, when oil extraction rates began to climb beyond loestablished norms. Traditionally, about 18.3% of a 60-pound bushel of soybeans yielded oil. That figure has now reached 20%, a seemingly small shift that represents a major transformation in output efficiency.

These gains are being achieved in two primary ways: through enhanced crush efficiency, which means processors are reducing waste and increasing yields of both oil and meal per unit of input; and by adjusting crush composition, prioritizing a higher ratio of oil relative to meal. Together, these changes have accounted for approximately 40% of the increase in U.S. soybean oil production since 2020.

In July 2025, for example, processors achieved an oil extraction rate of 20.0%, exceeding the expected trendline of 19.6%. With 11.7 billion pounds of soybeans crushed that month, the higher extraction rate generated an additional 43.9 million pounds of soybean oil beyond what would have been expected from historical trends. This type of performance shows how innovation at the processor level is delivering tangible results, even before new crush facilities come online.

Although total soybean oil production has increased steadily-by more than 47% since 2008-much of the recent growth is not due to crushing more soybeans but to extracting more oil per unit. Industry data suggests that roughly 30% of all above-trend oil production since 2020 is due to improved extraction rates alone. That number was even higher in the early years of the renewable diesel boom when crush capacity was limited and processors had no choice but to innovate within existing infrastructure.

Now, with new and expanded crush plants beginning operations across key agricultural states, the balance between volume and efficiency will be critical. While additional capacity allows for higher total output, crush composition adjustments remain a vital tool, especially as soybean meal demand does not always rise in tandem with oil demand. Without sufficient market pull for meal, increasing crush volumes can depress prices and hurt margins.

Looking ahead, several factors will determine how much further the industry can push oil extraction rates. These include the physical limitations of soybeans, the potential for high-oil soybean varieties, and technological improvements in crushing equipment. At the same time, policy developments-such as the expansion of renewable fuel standards and tax credits like 45Z-will influence the economics of biofuel production and, by extension, demand for soybean oil.

The ability to extract more oil per bushel not only helps meet renewable fuel goals but also supports supply chain resilience, co-op planning, and price stability in a volatile commodity landscape. For U.S. farmers, agronomists, and agribusiness leaders, the shift in soybean crush dynamics is more than a technical adjustment-it's a strategic evolution witfah loterm implications for sustainability and profitability.

As renewable diesel demand continues to rise, the soybean industry will need to continue walking the fine line between volume growth and value maximization. The success of this approach so far signals strong potential for continued adaptation, but it also raises important questions about how much further efficiency can stretch and what that means for the broader U.S. agricultural economy.