Industry Analysis & Industry Trends
Although US soybean farmers have grown in the past five years, the industry will continue to face pressure from international operators. With Brazil expected to overtake the United States as the top provider of soybeans, domestic operators will continue to fight for profitability and market share, while also battling volatile planting conditions. Additionally, as more Americans steer clear of processed foods, the industry will rely on demand from sectors like alternative fuels... purchase to read more
Industry Report - Industry Investment Chapter
Soybean farming requires substantial amounts of capital investment, leading to a high level of capital intensity. This is due to the fact that most farming activities such as plowing, sowing and harvesting are now mechanized. IBISWorld estimates that for every dollar spent on capital equipment, US soybean farms invest only $0.03 in labor.
Examples of capital equipment needed to operate a farm include tractors, storage mills and irrigation systems. Technological advancements are making these items increasingly costly, but they allow farmers to use less labor and ensure a higher-quality, more consistent crop. Labor requirements are declining in response to advancements in farm equipment... purchase to read more