Industry Analysis & Industry Trends
Over the past decade, corn has become the cash crop of the 21st century. The crop's popularity has been facilitated by federal mandates for ethanol use that are designed to reduce the United States' foreign oil dependency. With rising demand, the adoption of genetic modification (GM) technology has helped farmers heighten yields. Furthermore, both domestic and global demand growth exceeded the rise in supply, resulting in price increases and improved profitability for growers. While industry revenue is expected to fall over the five years to 2019, the long-term future for corn farmers is expected to be positive, since demand is anticipated to keep growing as renewable energy targets rise each year... purchase to read more
Industry Report - Industry Investment Chapter
Compared with the rest of the farming sector, capitalization in the Corn Farming industry is high. Tractors, combines and storage mills are common features on corn farms and are treated as depreciable assets. According to the 2012 Agricultural Census (the latest data available), the plant and machinery on the average corn farm are worth $326,327. This figure is significantly higher than the crop farming sector average of $154,425. Much of the equipment purchased comprises start-up costs, which creates a barrier to entry for potential corn farmers. However, if an established farmer chooses to include corn into his crop rotation, many of these initial capital investments will be avoided.
Labor intensity fluctuates in response to changing industry and economic conditions... purchase to read more