Farm Support Services
Description
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.
Worldwide production of crops and animals drives demand for farm support services. China, India, the US, and Brazil are among the top agricultural producers, according to Investopedia. Production of crops and livestock is expected to expand as rising populations and incomes in developing countries drive demand for food.
The US industry includes about 2 million farms in 2024, with an average annual income of about $240,000. The sector consists of 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.
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 (or neighboring farmers) that specialize in these critical stages. While many farms have expertise in pre- and post-harvest activities, outsourcing these can help maximize yield and lower farm labor costs.
Immediately following harvest, water retention and temperature control are the most critical concerns. Fresh products can quickly become damaged due to excessive hot or cold temperatures, direct sunlight, or desiccation (water loss). Uneven temperatures can lead to excessive browning, uneven ripening, softening, and off-flavors. Many fruits, vegetables, and flowers shrivel after losing only a small percentage of their ideal moisture content. For example, lettuce won't spoil for 10 days when picked at temperatures less than 60 degrees and cooled within two hours, but if picked at 75 degrees and not cooled until after 10 hours, spoilage begins after two days.
To make the most of a harvest, farms, particularly large farms, often use third-party services that can quickly pick and/or transfer harvested crops into the processing stage. Depending on the crop, key tasks include force-air-cooling, drying, cleaning, threshing, grading, and sorting.
Inputs vary depending on the support services provided. Common inputs include diesel fuel, electricity, machine repairs, chemicals, water, and hired farm labor.
Worldwide production of crops and animals drives demand for farm support services. China, India, the US, and Brazil are among the top agricultural producers, according to Investopedia. Production of crops and livestock is expected to expand as rising populations and incomes in developing countries drive demand for food.
The US industry includes about 2 million farms in 2024, with an average annual income of about $240,000. The sector consists of 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.
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 (or neighboring farmers) that specialize in these critical stages. While many farms have expertise in pre- and post-harvest activities, outsourcing these can help maximize yield and lower farm labor costs.
Immediately following harvest, water retention and temperature control are the most critical concerns. Fresh products can quickly become damaged due to excessive hot or cold temperatures, direct sunlight, or desiccation (water loss). Uneven temperatures can lead to excessive browning, uneven ripening, softening, and off-flavors. Many fruits, vegetables, and flowers shrivel after losing only a small percentage of their ideal moisture content. For example, lettuce won't spoil for 10 days when picked at temperatures less than 60 degrees and cooled within two hours, but if picked at 75 degrees and not cooled until after 10 hours, spoilage begins after two days.
To make the most of a harvest, farms, particularly large farms, often use third-party services that can quickly pick and/or transfer harvested crops into the processing stage. Depending on the crop, key tasks include force-air-cooling, drying, cleaning, threshing, grading, and sorting.
Inputs vary depending on the support services provided. Common inputs include diesel fuel, electricity, machine repairs, chemicals, water, and hired farm labor.
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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