Farm Support Services

First Research, Inc.
September 29, 2014
10 Pages - SKU: FRRS5335362
Countries covered: United States

Farm Support Services

Brief Excerpt from Industry Overview Chapter:

Companies in this industry provide support services for production of crops, such as planting and harvesting, and support services for production of animals, such as breeding. No major companies dominate the industry.

About 8,400 farm support services companies operate in the US, generating annual revenue of about $13 billion.

This industry includes companies that support crop and animal farming operations but don't themselves produce crops, raise farm animals, or own farmland.

COMPETITIVE LANDSCAPE

Demand is driven by domestic trends in crop and livestock production. The profitability of individual companies depends on establishing a value-added benefit to farms and keeping wages low. Large companies have advantages in vertical integration and in offering a wide range of services. Small companies can compete effectively by specializing in a niche industry or service.

PRODUCTS, OPERATIONS & TECHNOLOGY

Among all US farm support service providers, half specialize in crops and half in livestock; crop-related activities account for the majority of revenue. Major services include post-harvest crop activities like drying, cleaning, shelling, sorting, grading, and packing; and animal support activities like breeding livestock and pets, boarding and training horses, spraying cattle with insecticides, and stud services. Other offerings include soil preparation services like plowing and fertilizing; planting, cultivating, and protecting crops; machine-harvesting crops; cotton ginning; and farm labor contracting.

Crops are at their most delicate and fragile at initial planting and just after harvest. To minimize crop loss, farms often outsource planting, harvesting, and post-harvest tasks to companies...



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