|Last Quarterly Update:||11/25/2013|
|SIC Codes:||0116, 0119|
|NAICS Codes:||11111, 11112|
|Industry Overview||Trends & Challenges||Industry Forecast|
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|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry grow and harvest soybeans and oilseed-producing plants such as sunflower, safflower, flax, and canola (also known as rapeseed). No major companies dominate the industry.
The US oilseed farming industry includes about 300,000 farms, 65,000 of which specialize in oilseeds, with combined annual revenue of about $31 billion. Key growth drivers include industrial uses for soybeans, soy biodiesel, and increasing exports to China.
Farms that generate less than half of their total revenue from oilseed aren't included in this industry.
Demand is driven by consumer trends in food oil and meat consumption, and the federal push for production of biofuels. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. 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: about 15 percent of the farms account for about 60 percent of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include soybeans (90 percent of the market). Other products include sunflower seed, canola (also known as rapeseed), flaxseed, safflower, and peanuts grown for oil.
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 ...
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