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Oilseed Farming Industry Profile Excerpt
| SIC Codes: 0116, 0119 NAICS Codes: 11111, 11112, 11113 Page Length: 10-12 Last Quarterly Update: 11/3/2008 View Sample Industry Profile |
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The oilseed farming industry includes about 350,000 farms with combined annual oilseed revenue of $21 billion. No major companies dominate. The average annual total revenue per farm is $125,000, which may include some non-oilseed revenue. The industry is highly fragmented: the top 10 percent of farms generate one-third of total industry revenue.
Oilseed farming is the growing and harvesting of soybeans, dry peas, beans, and lentils; and oilseed-producing plants such as sunflower, safflower, flax, rape, and sesame. Farms with less than half of total revenue coming from oilseed aren't included in this industry, nor are farms that grow fresh beans or peas.
COMPETITIVE LANDSCAPE
Demand is driven by consumer trends in food oil and meat consumption, and the federal push for corn-based ethanol. 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 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 ...
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