Oilseed Farming

The US oilseed farming industry includes about 350,000 farms with combined annual oilseed revenue of $21 billion. No major companies dominate. The industry is fragmented: the top 10 percent of farms generate one-third of total industry revenue.

Oilseed farming is the growing and harvesting of soybeans and oilseed-producing plants such as sunflower, safflower, flax, and canola (also known as rapeseed). Farms that generate less than half of their total revenue from oilseed aren't included in this industry.

COMPETITIVE LANDSCAPE

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 highly mechanized operations and access to the latest in oilseed research. Small operations can compete effectively by specializing in organic and heirloom oilseeds. The industry is highly labor-intensive: of all farms that grow oilseed, average annual revenue per employee is $50,000.

Oilseed farms compete with producers of crops used to make other food oils, especially palm tree oil. Since crushed oilseed is an important livestock food source, the industry also competes with corn and other feed crops. Oilseed competes with corn and other major crops for farm acreage, as farmers tend to plant and harvest crops with the highest yield and payout.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include soybeans (90 percent of the market). Other products include sunflower seed, ...