Globally the U.S. is the number one producer, consumer and exporter of soybeans. Nationally, U.S. soybean production value ranks second among all agricultural bulk commodities, having a significant impact on U.S. farm incomes. U.S. soybeans have been a subsidized commodity since 1941 and the 2002 Farm Bill provides soybeans for the first time direct government and counter-cyclical payments. Using welfare economics, this research explores the political economy of U.S. soybean subsidy policies. Results indicate that in aggregate terms consumer interests dominate and in per capita terms producer interests dominate in the U.S. soybean industry. 4