Grain Farming Industry Profile

The US grain farming industry includes about 200,000 farms with combined annual grain revenue of about $68 billion. No major companies dominate the industry.

Farms in the industry generate at least half of their revenue from field corn, wheat, or rice. Producers of sweet corn, a vegetable, are included in the Vegetable & Melon Farming industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by government policies and consumer trends in eating grains, meat, and corn-based 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.

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 field corn (about 80 percent of revenue), wheat (15 percent), and rice (5 percent). Half of all field corn is used for livestock feed. Field corn is also used in industrial applications like biodegradable plastic; processed foods like breakfast cereal, salad dressing, margarine, soft drinks, and syrup; and ethanol fuel production.

Corn, the nation's largest crop, is grown on about one-fourth of the cropland harvested in the US. Each year, farmers produce ...