Hill of beans: Revenue growth is expected to normalize but rise marginally

The Soybean Farming industry experienced a volatile five years to 2017. Industry revenue grew immensely prior the beginning of the period, lifted by skyrocketing oilseed prices, giving the industry an inflated starting point. The rising demand for food from developing countries has supported industry exports; however, the appreciating US dollar has kept exports from rising at a fast rate. Meanwhile the rapid expansion of biofuel production spurred demand for soybeans at home. Demand for oilseeds, including soybeans, flatlined in 2013 just as production peaked, resulting in a steep decline in prices. In turn, industry revenue cratered that same year and drastically declined in 2015...read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry
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Industry Threats & Opportunities

  • Soybeans are anticipated to maintain their position as the second-largest crop in the United States
  • The number of soybean farmers is expected to increase, as land will be readily available
  • Imports will begin to make up a greater portion of domestic demand
  • Industry Report - Industry Investment Chapter

    Soybean farming requires substantial amounts of capital investment, leading to a high level of capital intensity. This is because 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 $0.38 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 enable farmers to use less labor and ensure a higher-quality, more consistent crop. Labor requirements are declining in response to advancements in farm equipment. Since labor is not a fixed cost, it fluctuates in response to changing industry conditions and seasons...purchase to read more.

    Additional Insights for the Soybean Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Soybean Farming Industry are

  • Economies of scale
  • Production of premium goods/services
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Demand from organic chemical manufacturing and Trade-weighted index in the Soybean Farming industry impact industry performance..

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    What is the Soybean Farming Industry?

    Farms in this industry grow soybeans as their main crop. Soybeans are most often used in livestock feeds and vegetable oils, with a small but growing proportion being used in biofuel production. Establishments that sell soybean seeds to US farmers for growing crops are also included.

    Industry Products
  • Soybean meal
  • Soybean oil
  • Soybean hulls
  • Industry Activities
  • Soybean farming
  • Soybean seed production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from organic chemical manufacturing
  • Trade-weighted index
  • World price of soybeans
  • Subsidies for soybean farming

  • Current Performance
  • Boom turns to bust
  • Prices drop dramatically
  • Shift in subsidies
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition overseas strengthens
  • Consumption trends
  • Profitability and industry size
  • Table: Soybean Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Soybean Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Production
  • Animal Food Production
  • Margarine & Cooking Oil Processing
  • Organic Chemical Manufacturing
  • Corn, Wheat & Soybean Wholesaling

  • Key Selling Industries
  • Biotechnology
  • Crop Services
  • Farm Product Storage & Warehousing
  • Farm, Lawn & Garden Equipment Wholesaling
  • Fertilizer Manufacturing

  • Products & Services
  • Soybean meal
  • Soybean oil
  • Soybean hulls
  • Chart: Soybean Farming Industry Products and Services Segmentation

  • Demand Determinants
  • Livestock production
  • Popularity of alternative energies
  • Price
  • Exchange rates
  • Consumer preferences

  • Major Markets
  • Exports to China
  • Exports to other countries
  • Domestic soybean crushing mills
  • Soybean growers
  • Chart: Major Market Segmentation for the Soybean Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesRent and UtilitiesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Soybean Farming

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Soybean Farming Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Soybean Farming Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Soybean Farming Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World Price of Soybeans (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Asian Soybean Rust
  • A disease caused by airborne fungi, which kills soybeans. It was discovered in US crops in 2004.
  • Biofuel
  • Also called agrifuel or biodiesel. A fuel consisting of or derived from dead biological material, usually plants.
  • Bushel
  • A unit of mass. A bushel of soybeans equates to 56 pounds or 25.4 kilograms.
  • Genetically Modified (Gm)
  • A technique whereby specific changes are introduced into a plant's or animal's DNA by genetic engineering techniques. The most common modified foods include soybean, corn and canola.
  • Herbicide
  • A substance used to destroy unwanted plants and weeds, while leaving a desired crop relatively unharmed.
  • Soybean Meal
  • The solid protein left over after the oil is removed from soybeans.
  • Yield
  • The amount of soybeans produced per acre of land. For soybeans, this is measured in bushels per acre.
  • Why buy this report?

    The Soybean Farming industry market report contains data and analysis of the most influential current and future trends shaping the industry. IBISWorld’s in-depth industry market research is presented in a logical, user-friendly format, and provides growth and profit forecasts for a five-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Soybean Farming:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Soybean Farming market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Soybean Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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