Industry Analysis & Industry Trends
Industry growth will be stimulated by several factors over the next five years, particularly as downstream markets experience a surge. The emerging biodiesel industry will boost demand for industry products, and the increasingly health-conscious public will also support growth for relatively healthy vegetable oils, like canola and sunflower. These trends in demand will cause the price of oilseed to rise, resulting in better returns for industry operators... purchase to read more
Industry Report - Industry Investment Chapter
The Oilseed Farming Industry is highly capital intensive. Operators use machines to make farming processes more efficient. Also, farms use technology to reduce soil erosion and control farm chemical runoff. Because farms are relying on technology more, the equipment experiences more wear and tear, causing operators to spend more on repairs. Consequently, depreciation costs have risen from 12.0% in 2007 to 12.9% in 2012.
However, farms still require the use of workers to perform activities such as planting and harvesting. During these peak periods, farms will hire seasonal workers. They contribute to the 6.9% of revenue that wages account for in 2012. As a result, for every dollar spent on wages, firms spend on average $1.87 on depreciation... purchase to read more