Oilseed Farming Industry Profile

The US oilseed farming industry includes about 300,000 farms with combined annual oilseed revenue of $21 billion. No major companies dominate the industry, which is fragmented.

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.

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 risk, and requires less fertilizer.

In summer, soybeans flower and produce 60 to 80 pods, each holding three pea-sized beans. Beans are harvested in late September or October, when the ...