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Oilseed Farming

  • ID: 1052460
  • May 2016
  • Region: United States
  • 10 pages
  • First Research
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Brief Excerpt from Industry Overview Chapter:

Companies in this industry grow and harvest soybeans and other oilseed-producing plants, such as sunflower, safflower, flax, and canola (also known as rapeseed). No major companies dominate the industry.

Worldwide, oilseed production totals about 420 million metric tons. Soybeans are by far the largest oilseed crop, accounting for about 75% of global production. Soybean production is concentrated in the Americas. Top soybean exporters include Brazil, the US, and Argentina.

The US oilseed farming industry includes about 310,000 farms, about 90,000 of which generate the majority of their revenue from oilseeds, with combined annual revenue of about $41 billion.

Competitive Landscape

Demand is driven by trends in food consumption. The profitability of individual companies depends on efficient operations. Large companies have advantages in purchasing land and equipment. Small operations can compete effectively by specializing in organic and heirloom oilseeds. The US industry is concentrated: the top 15% of farms account for about 65% of revenue.

Products, Operations & Technology

Major products include soybeans (90% of the market). Other products include sunflower seed, canola (also known as rapeseed), flaxseed, and safflower.

Soybeans are bushy, green legumes related to clover, peas, and alfalfa. Farmers plant seedlings in late spring after the danger of frost has passed. Most oilseed is grown on dry land in a crop rotation with corn. Planting the two crops in succession improves weed control, lowers pest and disease risk, and requires less fertilizer.

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Industry Overview
Quarterly Industry Update
Business Challenges
Business Trends
Industry Opportunities
Call Preparation Questions
Financial Information
Industry Forecast
Web Links and Acronyms

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US

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