Industry Analysis & Industry Trends
The overall industry is forecast to continue growing at a moderate rate over the next five years. Demand for hay will increase as cattle farmers switch to hay for cattle feed, and organic hay will continue to become increasingly popular as consumers opt for organic beef. Consumer preferences will also dictate growth in the sugar beet segment as soda and snack manufacturers opt for processed sugar over high-fructose corn syrup... purchase to read more
Industry Report - Industry Investment Chapter
Overall, the level of capital intensity in the Hay and Crop Farming industry is high. Advanced technology, such as balers in the hay segment and remote sensing systems in the sugar beet segment, has increased capital intensity considerably. On average, for every dollar spent on wages, industry operators spend $1.14 on capital expenses. The opportunity cost is added into this ratio because IBISWorld measures the labor intensity relative to capital intensity. Because most labor is unpaid, the opportunity cost must be used to represent family workers.
The widespread use of labor-saving techniques means that labor is almost exclusively employed to operate heavy machinery such as tractors and balers... purchase to read more