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Grain Farming Industry Profile Excerpt
| SIC Codes: 0111, 0112, 0115 NAICS Codes: 11114, 11115, 11116 Page Length: 10-12 Last Quarterly Update: 9/15/2008 View Sample Industry Profile |
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The grain farming industry includes about 240,000 farms with combined annual grain revenue of $70 billion. No major farms dominate. Major grain seed production companies include Monsanto, Syngenta, and DuPont. The average annual total revenue per grain farm is $300,000. The industry is highly fragmented: the top 10 percent of farms generate one-third of total industry revenue.
Grain farming is the growing and harvesting of wheat, corn, rice, and other grains. The industry also includes grain seed production and farms that grow grains in combination with oilseed crops. Field (also known as grain or feed) corn is not to be confused with sweet corn, an edible variety not included in this industry.
COMPETITIVE LANDSCAPE
Demand is driven by government policies and consumer trends in eating grains, meat, and corn sweeteners, like high-fructose corn syrup. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. Large companies have advantages in highly mechanized operations and access to the latest in genetically modified (GM) grains. Small operations can compete effectively by specializing in organic or non-GM grains. The industry is highly labor-intensive: average annual revenue per employee is $85,000.
Grain farms compete against oilseed and vegetable crops for farm acreage, as farmers tend to plant and harvest crops with the highest yield and payout. Field corn competes against crushed oilseed as a livestock food source.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include corn (75 percent of the market) ...
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