The average variable cost of producing a bushel of soybeans was $2.11 in 1990. Individual farm costs ranged from 50 cents to more than $10 per bushel. Regional differences in production practices and growing conditions influenced production costs. Soybean growers in the North had a significant cost advantage over producers in the South. Variations in acreage and yield were also important in distinguishing among individual farm costs, but were closely related to regional differences.