Industry Analysis & Industry Trends
The Corn Farming industry declined over the five years to 2015, falling from historic highs in the past five years. Government regulations created a significant new market for corn, causing corn production to skyrocket in the early part of the past five years. However, this increase in production has eventually led to an oversupply of the crop, especially as downstream biofuel production has slowed. Nevertheless, global demand for corn has renewed and planted acreage will decrease, leading to healthy demand for the crop in the next five years... 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