Industry Analysis & Industry Trends
The Soybean Farming industry experienced a volatile five years to 2016. Industry revenue grew immensely during the beginning of the period, lifted by skyrocketing oilseed prices. The rising demand for food from developing countries has supported industry exports, however the appreciating US dollar has kept exports steady. Meanwhile the rapid expansion of biofuel production spurred demand for soybeans at home. In addition, a surge in foreign inventory is responsible for the United States' declining share of global exports. During the next five years, soybeans are anticipated to maintain their position as the second-largest crop in the United States, behind corn... 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 $0.10 on 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