Industry Analysis & Industry Trends
Over the five years to 2016, industry revenue is expected to decline. However, increased demand for industry products including hay and crops such as mint, maple syrup and sugar beets will start to turn the industry around. As consumers become increasingly health-conscious, they will opt for healthier alternatives to high fructose corn syrups, such as sugar beets, driving industry demand. IBISWorld anticipates industry revenue to grow slightly over the five years to 2021. Growth is a result of continued consumer preference for organic meats and dairy will increase demand for high-value organic hay... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity within this industry is high due to the nature of the industry operations. Labor costs are relatively low within the industry. As seen by an employee to establishment ratio of 1.1:1, industry operations are almost entirely done by the farm owner's family. This artificially keeps wage costs low. The only way that wages can be kept low is through the use of equipment like tractors and bales. These pieces of equipment are expensive causing total depreciation for the industry to be high. These two factors combine to create a capital intensive industry. Capital intensity to wages has decreased over the five years to 2016 to $1.01 on the dollar from $1.18 in 2011.
.. purchase to read more