A novel and energy-efficient biochar kiln that can be operated in the field with few requirements has been developed. The generated syngas are recirculated into the combustion chamber to heat biomass. This study optimized the feedstock parameters, biochar yield, and economics of producing biochar from soybean straw using the Response Surface Methodology (RSM) based on Central Composite Design (CCD). The biochar kilns had an energy conversion efficiency of 47.02% and an overall kiln efficiency of 41.03% at steady-state operation over 500 °C. It produced an average of 29.43 ± 1.42% biochar with a minimal fuel-to-biochar ratio of 0.19 ± 0.02 and a payback period of 4.02 months. The statistical analysis confirmed that the characteristics of the feedstock affect the biochar output and economic aspects of the biochar production process. Based on the optimization studies, it was concluded that the feedstock's moisture content should be 8% and particle size should be 15 mm for higher biochar yield with maximum energy efficiency and benefit-cost ratio. Biochar produced at optimal conditions obtained from the optimization process was also characterized. Physical-chemical analysis reveals that biochar has a higher carbon content (79.38 ± 1.04 %) and a lower atomic ratio of H/C (0.696), O/C (0.14), and (N + O)/C (0.08), indicating higher carbon stability and aromaticity. The TGA analysis demonstrated the high thermal stability of biochar by showing a lower (2.15%) mass loss between the 343.8 and 407.1 °C temperature range. The SEM and TEM micrographs showed the microporous structure of the soybean straw biochar with a worm-like pattern and a cylindrical shape.