Grain Farming
Description
Farms in this industry grow field corn, wheat, or rice crops and seeds. No major companies dominate the industry.
Worldwide production of corn, wheat, and rice production is about 2.5 billion metric tons, according to Statista. The most important grain was corn, based on a production amount of over 1.2 billion metric tons. The United States accounting for nearly a 20% of total corn exports worldwide, according to the USDA Economic Research Service.
The US Crop industry, which includes the grain farming industry, with combined annual cash receipts of about $270 billion.
Producers of sweet corn, a vegetable, are included in the Vegetable & Melon Farming industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by government policies and trends in eating grains, meat, and corn-based sweeteners, such as high-fructose corn syrup. Ethanol use has also become a factor in recent years. 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 genetically modified (GM) grains. Small operations can compete by specializing in organic or non-GM grains.
Grain farms compete against oilseed and vegetable crops for farm acreage, as farmers tend to plant and harvest crops with the highest yield and payout. Field corn competes against crushed oilseed as a livestock food source.
The US is a net exporter of grains. The US primarily exports to Mexico, Canada and Japan. Its imports are typically from Canada and Argentina.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products in the US Crop industry, which includes grain farming, are corn and soybeans. Other products include fruits and nuts, vegetables and melons, and wheat. Field corn is used primarily for livestock feed. Field corn also is used in industrial applications like biodegradable plastic; processed foods like breakfast cereal, salad dressing, margarine, soft drinks, and syrup; and ethanol production. About a third of the US corn crop is used to make ethanol.
Corn, the nation's largest crop, has propelled the US as the top exporters accounting for 30% of the global production. Each year, farmers produce nearly 377.65 million metric tons. Nearly all corn is hybrid, which provides a higher yield, responds better to fertilization, and can better withstand large-scale mechanical harvesting. Modern field corn is bred to grow only one large ear per stalk. Corn bushels are about $4.40 per bushel. The average corn yields around 175 bushels per acre (around four tons of shelled corn).
Corn is planted in spring after the danger of frost has passed. The majority of wheat is planted in fall to allow its root system to develop during the winter; in the northern plains, wheat is commonly planted in the spring. Farmers must accurately measure the number of seeds per acre, as crowded seeds can delay maturity and stunt growth, while low plant populations result in poor yields. Corn needs only moderate amounts of water, but irrigation may be required during drought. Heavy spring rains can create muddy soil, which can rot corn seedlings.
Farmers harvest corn for grain when the plant's moisture content is around 28%. Corn silage, used for livestock feed or ethanol, is picked earlier, as it requires a moisture level of 50-70% to encourage fermentation during storage. A combine threshes the corn from the stalk, removes the husks, shells and cleans the corn, and collects grain in a holding tank until it's unloaded and moved on- or off-farm for storage.
Field corn must be dried to lower moisture content. Corn can be naturally air-dried or heated in a storage bin. Airflow moves from the bottom of the silo up, so that the grain on the top is last to dry and is easiest to survey for moisture.
Farmers typically grow grains in a crop rotation with oilseed or broadleaf plants. Planting the two crops in succession improves weed control, lowers pest and disease risk, and requires less fertilizer.
Common inputs include seed, fertilizer, chemicals for weed control, fuel, electricity, machinery, and repairs. Labor costs tend to be very low in grain farming.
Worldwide production of corn, wheat, and rice production is about 2.5 billion metric tons, according to Statista. The most important grain was corn, based on a production amount of over 1.2 billion metric tons. The United States accounting for nearly a 20% of total corn exports worldwide, according to the USDA Economic Research Service.
The US Crop industry, which includes the grain farming industry, with combined annual cash receipts of about $270 billion.
Producers of sweet corn, a vegetable, are included in the Vegetable & Melon Farming industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by government policies and trends in eating grains, meat, and corn-based sweeteners, such as high-fructose corn syrup. Ethanol use has also become a factor in recent years. 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 genetically modified (GM) grains. Small operations can compete by specializing in organic or non-GM grains.
Grain farms compete against oilseed and vegetable crops for farm acreage, as farmers tend to plant and harvest crops with the highest yield and payout. Field corn competes against crushed oilseed as a livestock food source.
The US is a net exporter of grains. The US primarily exports to Mexico, Canada and Japan. Its imports are typically from Canada and Argentina.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products in the US Crop industry, which includes grain farming, are corn and soybeans. Other products include fruits and nuts, vegetables and melons, and wheat. Field corn is used primarily for livestock feed. Field corn also is used in industrial applications like biodegradable plastic; processed foods like breakfast cereal, salad dressing, margarine, soft drinks, and syrup; and ethanol production. About a third of the US corn crop is used to make ethanol.
Corn, the nation's largest crop, has propelled the US as the top exporters accounting for 30% of the global production. Each year, farmers produce nearly 377.65 million metric tons. Nearly all corn is hybrid, which provides a higher yield, responds better to fertilization, and can better withstand large-scale mechanical harvesting. Modern field corn is bred to grow only one large ear per stalk. Corn bushels are about $4.40 per bushel. The average corn yields around 175 bushels per acre (around four tons of shelled corn).
Corn is planted in spring after the danger of frost has passed. The majority of wheat is planted in fall to allow its root system to develop during the winter; in the northern plains, wheat is commonly planted in the spring. Farmers must accurately measure the number of seeds per acre, as crowded seeds can delay maturity and stunt growth, while low plant populations result in poor yields. Corn needs only moderate amounts of water, but irrigation may be required during drought. Heavy spring rains can create muddy soil, which can rot corn seedlings.
Farmers harvest corn for grain when the plant's moisture content is around 28%. Corn silage, used for livestock feed or ethanol, is picked earlier, as it requires a moisture level of 50-70% to encourage fermentation during storage. A combine threshes the corn from the stalk, removes the husks, shells and cleans the corn, and collects grain in a holding tank until it's unloaded and moved on- or off-farm for storage.
Field corn must be dried to lower moisture content. Corn can be naturally air-dried or heated in a storage bin. Airflow moves from the bottom of the silo up, so that the grain on the top is last to dry and is easiest to survey for moisture.
Farmers typically grow grains in a crop rotation with oilseed or broadleaf plants. Planting the two crops in succession improves weed control, lowers pest and disease risk, and requires less fertilizer.
Common inputs include seed, fertilizer, chemicals for weed control, fuel, electricity, machinery, and repairs. Labor costs tend to be very low in grain farming.
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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