America’s Farmland Resources Drive American Agriculture’s Exceptionalism

The United States’ highly fertile and abundant soils, coupled with extensive infrastructure and technological advantages have made the United States the low cost producer globally of the Big Five commodity crops.

The notion of American exceptionalism stands out when examining the nation's farmland resources. While ingenuity, technological advancement, and hard work are undeniable components of American farming success, a significant and often understated factor lies in the sheer abundance and quality of the natural resources the United States inherently possesses. From fertile soils and expansive cropland to unparalleled access to global markets via its waterways, these natural advantages provide a powerful foundation for American farmers to not only feed a nation but also thrive on the international stage due to favorable production costs.

One of the fundamental pillars of American agricultural strength is the exceptional quality of its soils in key farming regions. The Midwest, often referred to as the "Corn Belt," boasts some of the most fertile and productive soils on the planet. Formed by glacial deposits and centuries of prairie grass decomposition, these Mollisols are rich in organic matter, deep, and possess excellent water-holding capacity. Similarly, the Mississippi Delta region benefits from alluvial soils deposited by the world’s 4th longest and arguably most navigable river, creating fertile land ideal for crops like rice, cotton, and soybeans.

These inherent advantages extend beyond the heartland. The Columbia Basin in Washington and the Snake River Basin in Idaho and Oregon, stand as agricultural powerhouses due to a unique combination of climate and abundant water resources for irrigation. These regions, characterized by fertile volcanic soils and a dry climate ideal for controlling pests and diseases, have been transformed by extensive irrigation projects drawing water from these major river systems. This access to reliable water in an otherwise arid environment allows for the production of high-value crops like potatoes, onions, sugar beets, fruits, and grains with remarkable efficiency, further bolstering America's agricultural output and its ability to compete globally. Finally, California's Central Valley, while requiring irrigation, features nutrient-rich soils and a favorable climate that supports a wide array of specialty crops. For example, the Central Valley of California alone provides over ⅔ of the world’s almonds and pistachios.

Figure 1 - Cultivated Acres of the United States

Source: USDA NASS (2025), AcreTrader

When comparing these prime agricultural lands to those in other major farming nations, the American advantage becomes apparent. While countries like China and India have extensive agricultural land, the average soil quality is often less fertile and requires more intensive management and fertilization. Even in Europe, where agricultural practices are highly advanced, the naturally occurring soil fertility in regions like the North European Plain, while productive, generally doesn't match the inherent richness found across vast stretches of the American Midwest. According to the USDA NRCS, the United States contains more Class I agricultural soils than any other country.

Figure 2 - USDA NRCS Inherent Land Quality Assessment

Source: USDA NRCS (1996)

This natural soil fertility translates directly into higher yields with potentially lower input costs for American farmers. As the University of Illinois’ Farmdoc highlights in the chart below, soybean costs per acre in Illinois have consistently been below that of the Corn Belt’s closest global competitor, Mato Grosso, Brazil.

Figure 3 - Soybean Average Total Direct Costs (US$ per acre)

America is considered the low-cost producer of corn, soybeans, wheat, cotton, and rice. The United States is the world’s leading and lowest cost producer of corn due to the Corn Belt’s fertile land, scale, efficiency, advanced machinery, and high-yield seed varieties. In addition, the United States has a strong cost advantage in growing hard red winter wheat, is a global leader in cotton exports, and remains a low-cost producer of rice in the Mississippi Delta and Central Valley of California.

According to the USDA NRCS, only a quarter of the world’s population lives on land with a high potential for grain production, while roughly half of the global population inhabits land with significant agricultural constraints, and a quarter of the world’s population must survive on lands that are considered unsuitable for grain production.

Beyond soil quality, the sheer amount of cropland available per capita in the United States provides another significant advantage. While population density varies greatly across the globe, the U.S. possesses a relatively high amount of arable hectares per capita when compared to other countries, particularly densely populated countries such as Mexico, China, the European Union, Japan, South Korea, Taiwan, the Philippines, Vietnam, and India, among others. According to data from the World Bank, the United States ranks in the top 15 countries in terms of arable land per capita. This abundance of land allows for economies of scale in farming operations, enabling American farmers to adopt large-scale, efficient practices that drive down production costs per unit.

Figure 4 - Arable Land Per Capita

Source: World Bank Group (2021)

A final, key reason for the United State’s low cost advantage on a global scale is transportation costs. The United States is uniquely blessed with an extensive network of navigable inland waterways and well-developed ports that provide unparalleled access to global markets. The Mississippi River system, a vast network of rivers and canals, acts as a crucial artery for transporting agricultural commodities from the heartland to the Gulf of Mexico for international shipping. This efficient and relatively low-cost transportation system connects key farming regions in the Midwest and Mississippi Delta to global demand centers. For example, the cost per ton-mile of shipping via barge on the Mississippi River is in the range of $0.01 - $0.03 per ton-mile, while rail freight is $0.15 - $0.20 per ton-mile, and shipping via truck is the highest cost per ton-mile. Similarly, the Great Lakes and the extensive coastline with numerous deep-water ports facilitate the movement of agricultural products both domestically and internationally.

Figure 5 - The U.S. Inland Waterway Navigation System

Source: Knight, K.P. (2023). Shipper Response Surveys and their Importance in the Evaluation of U.S. Inland Waterways.

Figure 6 - Gage-adjusted Average Annual Flow (CFS)

Source: Heberger, Matthew. 2013. American Rivers: A Graphic. Oakland, Calif.: Pacific Institute.

Consider the journey of soybeans grown in Iowa. They can be efficiently transported via barge down the Mississippi River to New Orleans, where they are then loaded onto cargo ships destined for markets across the world. This seamless and cost-effective access to global transportation networks reduces logistical hurdles and lowers the overall cost of getting American agricultural products to international buyers. In contrast, farmers in landlocked regions of other countries often face significantly higher transportation costs to reach international ports, impacting their competitiveness. For example, soybeans grown in Mato Grosso, Brazil typically must be trucked 600 - 1,200 miles to reach ocean export terminals.

Tying these elements together demonstrates how America's inherent natural resources contribute to the competitive global edge of its farmers. The combination of high-quality soils leading to potentially higher yields with lower input costs, the abundance of cropland allowing for efficient large-scale operations, and the strategic access to global markets via navigable waterways and ports all contribute to lower per-unit production costs. This cost advantage allows American farmers to compete effectively with producers from other nations, even in the face of fluctuating global commodity prices.

While factors like technological innovation, government policies, and farmer expertise are undoubtedly important contributors to American agricultural success, the foundation of this strength is deeply rooted in the nation's exceptional natural endowments. The fertile soils, expansive croplands, and unparalleled access to global markets provide a natural advantage that continues to play a crucial role in allowing American farmers to compete and win in the global agricultural landscape. This inherent advantage is underpinned by a fundamental real asset that drives America's position as a leading agricultural producer and exporter in the 21st century.

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