Industry Analysis & Industry Trends
Demand for crop support services closely follows demand for crop production. Fortunately for the industry, US farmers have benefited from increased consumption and biofuel production in recent years, as well as a shortage in global supplies following adverse farming conditions in other countries. Increasing automation in the agriculture sector will also boost demand for outsourced services, as many farmers may not have the capital required to perform some tasks... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering in this industry vary by segment for new participants. While inputs are readily available for purchase for all of the activities, the high capital investment requirements and technology costs can be prohibitive. This is particularly true for cotton ginning, soil preparation, machine-based harvesting and processing, but is not applicable to labor contracting or management services. Capital expenditures for harvesters, silos and other machinery can range in the millions of dollars, necessitating debt financing, which can be difficult to find.
Like many agricultural service industries, the profitability of this industry is volatile. It depends on a range of external factors that are beyond the control of service providers... purchase to read more