Poor harvest: Falling prices and weakening export demands cause the industry to falter

Over the five years to 2018, the Wheat, Barley and Sorghum Farming industry has exhibited significant volatility and poor performance. Falling output prices, such as the world price of wheat, have been detrimental to industry revenue growth. Additionally, during the five-year period, the exchange rate dynamic has been detrimental for domestic operators, while grain use for animal feed is declining, which demonstrates a weakening in demand from animal feed producers and their end markets, livestock producers. Over the five years to 2023, the industry is anticipated to slow its decline, with industry performance strengthening on the back of a projected increase in the world price of wheat...purchase to read more.

Industry Statistics & Market Size
Revenue
$10bn
Annual Growth 13-18
-10.9%
Forecast Growth 18-23
Profit
Employment
110,118
Businesses
90,675
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Domestic production conditions have been rocky at best over the past five years
  • Low prices have further exacerbated declines in both industry revenue and the value of industry exports
  • Weakening in the strength of the dollar will help to push the value of industry exports up
  • Industry Report - Industry Locations Chapter

    Successful grain farming, like most other farming in the United States, depends on the right mix of sunshine and rain. For this reason, the largest concentration of harvested acres of wheat, barley, sorghum and other grains is in the Plains region, which accounts for 43.4% of the total acres harvested in the United States in 2017. The central states get more direct sunshine, especially in the summer months, resulting in an ideal grain-growing climate. Kansas and North Dakota are the top two grain-producing states, accounting for a respective 16.9% and 14.6% of the total acreage planted.The Southwest region accounts for the second-largest percentage of total harvested acres, making up 21.8% of the total. Tex...purchase to read more.

    Additional Insights for the Wheat, Barley & Sorghum Farming Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Wheat, Barley & Sorghum Farming Industry are

  • Ability to alter goods and services produced in favor of market conditions
  • Economies of scale
  • Appropriate physical growing conditions
  • IBISWorld analysts also discuss how external factors such as Trade-weighted index and World price of wheat in the Wheat, Barley & Sorghum Farming industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Wheat, Barley & Sorghum Farming Industry?

    Farmers in this industry primarily grow one or more varieties of wheat or a combination of sorghum, barley, oats, rye and other grains, where no single crop accounts for more than half the total value of production of the farm.

    Industry Products
  • Hard red winter wheat
  • Hard red spring wheat
  • Soft red winter wheat
  • White wheat
  • Durum
  • Sorghum
  • Barley
  • Industry Activities
  • Growing hard red wheat
  • Growing soft red wheat
  • Growing white wheat
  • Growing Durum wheat
  • Growing sorghum
  • Growing barley
  • Growing oats
  • Growing rye
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Trade-weighted index
  • World price of wheat
  • Demand from animal food production
  • Per capita wheat flour consumption
  • Subsidies for cereal grain farming

  • Current Performance
  • Threshed by the market
  • Supply glut
  • The grainy train stops here
  • Chart: Revenue Growth

  • Industry Outlook
  • Currency and trade
  • Less acres, more produce
  • Only the strong survive
  • Table: Wheat, Barley & Sorghum Farming Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Wheat, Barley & Sorghum Farming Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beef Cattle Production
  • Hog & Pig Farming
  • Chicken Egg Production
  • Animal Food Production
  • Flour Milling
  • Breweries
  • Corn, Wheat & Soybean Wholesaling
  • Chicken & Turkey Meat Production

  • Key Selling Industries
  • Crop Services
  • Farm Product Storage & Warehousing
  • Farm, Lawn & Garden Equipment Wholesaling
  • Fertilizer Manufacturing
  • Long-Distance Freight Trucking
  • Water Supply & Irrigation Systems
  • Wheat, Barley & Sorghum Farming

  • Products & Services
  • Hard red winter wheat
  • Hard red spring wheat
  • Sorghum
  • Soft red winter wheat
  • Barley
  • White wheat
  • Durum
  • Other
  • Chart: Wheat, Barley & Sorghum Farming Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Food and beverage producers
  • Animal food
  • Seed
  • Chart: Major Market Segmentation for the Wheat, Barley & Sorghum Farming Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Rent, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Wheat, Barley & Sorghum Farming

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Wheat, Barley & Sorghum 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 Wheat, Barley & Sorghum 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 Wheat, Barley & Sorghum Farming Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • World price of wheat (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Biofuel
  • Any fuel produced from biomass or organic materials including biodiesel and ethanol.
  • Bushel
  • A unit of mass equal to 56 pounds or 25.4 kilograms.
  • Genetically Modified
  • Also referred to as GM, organisms that have had their DNA altered through genetic engineering to exhibit desired traits.
  • Herbicide
  • A chemical agent that destroys plants or stunts their growth. Often used to kill weeds that inhibit crop growth.
  • Pesticide
  • A chemical applied to crops to kill pests.
  • Yield
  • The amount of a crop produced per acre of land, measured in bushels per acre for grains.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Wheat, Barley & Sorghum Farming provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    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 Wheat, Barley & Sorghum 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 Wheat, Barley & Sorghum 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 Wheat, Barley & Sorghum Farming, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear