Crop out: Declining crop production will significantly cut down industry demand

The Crop Services industry consists of companies that assist in a variety of planting, harvesting and treatment activities for crop producers. The industry provides services for all types of crops, including handpicking fruit, crop dusting and cotton ginning. Therefore, industry performance is the aggregate result of many different types of industry operators. Grains such as corn and wheat, as well as oilseed crops such as soybeans, have become more significant in providing for an increasing global population. Corn production, which requires industry services such as crop dusting, has become important as US renewable energy quotas have pushed for the crop's use in ethanol production, increasing revenue generated from this segment...purchase to read more.

Industry Statistics & Market Size
Revenue
$17bn
Annual Growth 13-18
3.8%
Forecast Growth 18-23
Profit
Employment
125,868
Businesses
62,667
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Due to falling crop prices and decreasing planted acreage, crop production is expected to decrease
  • Rising crop prices has led to increased crop production
  • Farmers will consolidate and gain greater bargaining power, raising prices
  • Industry Report - Industry Locations Chapter

    Establishments that provide support services for crop production are spread throughout the United States, with the majority of industry participants situated in rural areas. Businesses that carry out on-farm services locate themselves close to the farms they service. As a result, the industry's geographic spread does not change considerably from year to year.Cotton ginning is concentrated primarily in the West (25.2% of establishments), the Southeast (22.3%) and the Plains (20.5%). Farm labor contractors and post-harvest crop activities are mainly located in the West, with California alone accounting for 18.6% of all industry establishments. California is responsible for a large proportion of fresh market fruit and vegetables grown in the United States. Fru...purchase to read more.

    Additional Insights for the Crop Services Industry

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

  • Having a good reputation
  • Superior financial management and debt management
  • Provision of superior after-sales service
  • IBISWorld analysts also discuss how external factors such as Demand from crop production and Agricultural price index in the Crop Services industry impact industry performance..

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    What's in this report

    What is the Crop Services Industry?

    Establishments in this industry provide support activities for growing crops. Some examples of these support activities include cotton ginning, soil treatment, crop planting and harvesting. Almost all US farmers, including cotton, wheat, corn and fruit growers, purchase from this industry at some level.

    Industry Products
  • Cotton ginning
  • Soil preparation, planting and cultivating
  • Crop harvesting by machine
  • Post-harvest crop activities
  • Farm labor contractors and crew leaders
  • Farm management services
  • Industry Activities
  • Cotton ginning
  • Soil preparation, planting and cultivating
  • Postharvest crop activities (except cotton ginning)
  • Crop harvesting, primarily by machine
  • Farm labor contractors and crew leaders
  • Farm management services
  • 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 crop production
  • Agricultural price index
  • Price of fertilizer
  • Prime rate

  • Current Performance
  • Global crop prices influence revenue
  • Flexible outsourcing to the industry
  • Labor and company trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Profitability
  • Maintaining a workforce
  • Opportunities and threats
  • Table: Crop Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Crop Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Soybean Farming
  • Corn Farming
  • Wheat, Barley & Sorghum Farming
  • Vegetable Farming
  • Orange & Citrus Groves
  • Fruit & Nut Farming
  • Cotton Farming

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing
  • Chemical Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Lubricant Oil Manufacturing
  • Tractors & Agricultural Machinery Manufacturing

  • Products & Services
  • Post-harvest crop activities
  • Soil preparation, planting and cultivating
  • Farm labor contractors and crew leaders
  • Farm management services
  • Crop harvesting by machine
  • Cotton ginning
  • Chart: Crop Services Industry Products and Services Segmentation

  • Demand Determinants
  • Activity in cropping industries
  • On-farm services, equipment and labor
  • Cost of support services
  • Seasonality

  • Major Markets
  • Grain and oilseed growers
  • Fruit and vegetable growers
  • Other field crop growers
  • Cotton growers
  • Chart: Major Market Segmentation for the Crop Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Depreciation
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Crop Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Crop Services 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 Crop Services 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 Crop Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Planted Acres (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Biofuel
  • Also called agri-fuel or bio-diesel. A fuel consisting of or derived from dead biological material, usually plants.
  • Cooperative
  • A jointly owned, vertically integrated organization, also referred to as a co-op, which produces and distributes goods for the benefit of the owners.
  • Genetically Modified (Gm)
  • Plants and animals that have had their genome modified through genetic-engineering techniques involving the transfer of genetic material from one organism to another.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Crop Services 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 Crop Services:
    • 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 Crop Services 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 Crop Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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