Crop Production
Description
Companies in this industry grow crops mainly for food and fiber. Major companies include Chiquita Brands International, Dole Food Company, Fresh Del Monte Produce, and Sunkist Growers (all based in the US); along with AMAGGI (Brazil) and Dole PLC (Ireland).
Global crop production increase reached about 10 billion tons in 2024, according to the Food and Agriculture Organization's Agricultural Production Statistics. Cereals, sugar crops, and oil crops are some of the most highly produced crops by volume. China, India, the US, and Brazil are some of the top food producing countries, according to Investopedia.
The US crop production industry includes about 2 million farms with combined annual revenue of about $250 billion, with corn and soybeans accounting for about 50% of all US crop receipts.
COMPETITIVE LANDSCAPE
Demand is driven by federal agricultural policy programs, global and national food consumption trends, and the grain and oilseed export market. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. Large companies have advantages in highly automated technologies and access to the latest in seed and crop technologies. Small operations can compete effectively by harvesting heirloom, non-genetically modified (GM), organic, or specialty products.
US exports, which include oilseeds and grains, were valued at about $180 billion in 2024, according to Agricultural Trade of Economic Research Services (ERS). Canada, Mexico, China, Taiwan, and Germany are major trade partners of the US.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are corn (about 30% of US industry revenue), soybeans (about 20%), fruits and nuts (about 20%), vegetables and melons (about 10%), and wheat (about 5%). The remaining crops account for about 25%. The production of hemp, a form of cannabis with lower THC levels than marijuana, was legalized under the 2019 farm bill, presenting potential lucrative new markets for farmers.
Crop farming operations consist of soil preparation; planting; application of fertilizer, pesticides, and water; and harvesting. Most farmers concentrate on one or a few crops, depending on local soil, weather, and water conditions. Many farms harvest multiple crops multiple times during the year. Corn for grain is planted in spring after the danger of frost has passed, while wheat is planted in fall to allow its root system to develop over the winter.
Grain and oilseed farmers commonly practice crop rotation, typically alternating between plantings of grain corn and soybeans. Planting these two crops in succession improves weed control, lowers pest and disease risk, and requires less fertilizer.
Farmers must accurately measure the number of seeds per acre: crowded seeds can delay maturity and stunt growth, while low plant populations result in poor yields. Farmers closely monitor crop yield per acre, which is affected by weather, fertilizer, and pesticide applications and proper crop and seed selection. Yields can fluctuate yearly. For most crops, plants are harvested when moisture content drops to a certain level.
Common inputs include seed, fertilizer, chemicals for weed control, fuel, electricity, machinery, and repairs. The average grain or oilseed farm is 790 acres. Vegetable and melon farms average 230 acres; fruit and nut farms, 125.
Most crop farms are highly mechanized for activities like tilling, planting, and applying fertilizer. Harvesting is often done using specialized machinery, but also may require large amounts of manual labor, depending on the crop. One-third of all grain and oilseed farms require farm labor beyond the operator's own contribution.
Global crop production increase reached about 10 billion tons in 2024, according to the Food and Agriculture Organization's Agricultural Production Statistics. Cereals, sugar crops, and oil crops are some of the most highly produced crops by volume. China, India, the US, and Brazil are some of the top food producing countries, according to Investopedia.
The US crop production industry includes about 2 million farms with combined annual revenue of about $250 billion, with corn and soybeans accounting for about 50% of all US crop receipts.
COMPETITIVE LANDSCAPE
Demand is driven by federal agricultural policy programs, global and national food consumption trends, and the grain and oilseed export market. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. Large companies have advantages in highly automated technologies and access to the latest in seed and crop technologies. Small operations can compete effectively by harvesting heirloom, non-genetically modified (GM), organic, or specialty products.
US exports, which include oilseeds and grains, were valued at about $180 billion in 2024, according to Agricultural Trade of Economic Research Services (ERS). Canada, Mexico, China, Taiwan, and Germany are major trade partners of the US.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products are corn (about 30% of US industry revenue), soybeans (about 20%), fruits and nuts (about 20%), vegetables and melons (about 10%), and wheat (about 5%). The remaining crops account for about 25%. The production of hemp, a form of cannabis with lower THC levels than marijuana, was legalized under the 2019 farm bill, presenting potential lucrative new markets for farmers.
Crop farming operations consist of soil preparation; planting; application of fertilizer, pesticides, and water; and harvesting. Most farmers concentrate on one or a few crops, depending on local soil, weather, and water conditions. Many farms harvest multiple crops multiple times during the year. Corn for grain is planted in spring after the danger of frost has passed, while wheat is planted in fall to allow its root system to develop over the winter.
Grain and oilseed farmers commonly practice crop rotation, typically alternating between plantings of grain corn and soybeans. Planting these two crops in succession improves weed control, lowers pest and disease risk, and requires less fertilizer.
Farmers must accurately measure the number of seeds per acre: crowded seeds can delay maturity and stunt growth, while low plant populations result in poor yields. Farmers closely monitor crop yield per acre, which is affected by weather, fertilizer, and pesticide applications and proper crop and seed selection. Yields can fluctuate yearly. For most crops, plants are harvested when moisture content drops to a certain level.
Common inputs include seed, fertilizer, chemicals for weed control, fuel, electricity, machinery, and repairs. The average grain or oilseed farm is 790 acres. Vegetable and melon farms average 230 acres; fruit and nut farms, 125.
Most crop farms are highly mechanized for activities like tilling, planting, and applying fertilizer. Harvesting is often done using specialized machinery, but also may require large amounts of manual labor, depending on the crop. One-third of all grain and oilseed farms require farm labor beyond the operator's own contribution.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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