Oilseed Farming Industry Overview

Excerpt from Oilseed Farming Report

Companies in this industry grow and harvest soybeans and oilseed-producing plants such as sunflower, safflower, flax, and canola (also known as rapeseed). No major companies dominate the industry.

Competitive Landscape

Demand is driven by consumer trends in food oil and meat consumption, and the federal push for production of biofuels. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. Large companies have advantages in purchasing land and equipment. Small operations can compete effectively by specializing in organic and heirloom oilseeds. The industry is concentrated: about 15 percent of the farms account for about 60 percent of revenue.

Products, Operations & Technology

Major products include soybeans (90 percent of the market). Other products include sunflower seed, canola (also known as rapeseed), flaxseed, safflower, and peanuts grown for oil.