US INDUSTRY (NAICS) REPORT 11199
Hay & Crop Farming in the US
New harvest: Changing consumer preferences will likely drive demand for industry
products
Brenna Butler | August 2020
IBISWorld.com
+1-800-330-3772
info@IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Contents
About This Industry...........................................5
Competitive Landscape...................................26
Industry Definition..........................................................5
Market Share Concentration....................................... 26
Major Players................................................................. 5
Key Success Factors................................................... 26
Main Activities................................................................5
Cost Structure Benchmarks........................................ 27
Supply Chain...................................................................6
Basis of Competition................................................... 30
Similar Industries........................................................... 6
Barriers to Entry........................................................... 31
Related International Industries....................................6
Industry Globalization..................................................31
Industry at a Glance.......................................... 7
Major Companies............................................ 33
Executive Summary....................................................... 8
Major Players............................................................... 33
Other Players................................................................33
Industry Performance....................................... 9
Operating Conditions...................................... 34
Key External Drivers....................................................... 9
Current Performance................................................... 10
Capital Intensity........................................................... 34
Technology And Systems........................................... 35
Industry Outlook............................................. 14
Outlook......................................................................... 14
Performance Outlook Data......................................... 15
Revenue Volatility........................................................ 37
Regulation & Policy...................................................... 38
Industry Assistance..................................................... 40
Industry Life Cycle....................................................... 15
Key Statistics.................................................. 43
Products and Markets..................................... 18
Industry Data................................................................43
Supply Chain................................................................ 18
Products and Services.................................................18
Demand Determinants................................................ 19
Major Markets..............................................................20
Annual Change.............................................................43
Key Ratios.................................................................... 43
Industry Financial Ratios............................................. 44
Additional Resources...................................... 45
International Trade.......................................................22
Business Locations..................................................... 23
Additional Resources.................................................. 45
Industry Jargon............................................................ 45
Glossary Terms............................................................45
2
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
About IBISWorld
IBISWorld specializes in industry research with coverage on thousands of global industries. Our comprehensive
data and in-depth analysis help businesses of all types gain quick and actionable insights on industries around
the world. Busy professionals can spend less time researching and preparing for meetings, and more time
focused on making strategic business decisions that benefit you,your company and your clients. We offer
research on industries in the US, Canada, Australia, New Zealand, Germany, the UK, Ireland, China and Mexico,
as well as industries that are truly global in nature.
3
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Covid-19
Coronavirus
Impact Update
IBISWorld's analysts constantly monitor the industry impacts of current events in
real-time – here is an update of how this industry is likely to be impacted as a result
of the global COVID-19 pandemic:
• Revenue in the Hay and Crop Farming industry is forecast to decrease 11.1% in
2020 as a result of the greater economic slowdown and supply chain disruptions in
downstream markets, ultimately weakening demand. For more detail, please see
the Demand Determinants chapter.
• Corn is a prominent substitute for industry products and easily switched out when
prices rise. In 2020, the price of corn is expected to fall 10.5%, making industry
products relatively more expensive and therefore weakening demand further. For
more detail, please see the Current Performance chapter.
• Significant programs and policies have been passed to directly aid industry
operators through the economic uncertainty. For more detail, please see the
Industry Assistance chapter.
Note: The content in this report is currently being updated to reflect the trends
outlined above.
4
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
About This Industry
Industry Definition
More than half the farms in this industry grow hay, while a small number grow sugar
beets. A variety of other crops, such as hops and herbs, are included in the industry.
Some operators also gather agave, spices, tea and maple sap.
Major Players
There are no major players in this industry
Main Activities
The primary activities of this industry:
Hay, alfalfa and other farming
Sugar beet farming
Hop farming
Aloe, mint and herb farming
Tea and spice farming
Maple tapping
The major products and services in this industry:
Hay
Sugar beets
Hops
Mint
Maple products
Other crops
5
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Supply Chain
SIMILAR INDUSTRIES
Soybean Farming in the US
Corn Farming in the US
Cotton Farming in the US
Sugarcane Harvesting in the
US
Wheat, Barley & Sorghum
Farming in the US
Tobacco Growing in the US
RELATED INTERNATIONAL INDUSTRIES
Hay and Other Crop Growing
in Australia
6
Hay and Other Crop Growing
in New Zealand
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Industry at a Glance
Products & Services Segmentation
26.5%
4.4%
1.8%
0.5%
0.4%
66.4%
Hay
Sugar beets
Hops
Mint
Maple products
Other crops
Hay & Crop Farming
Source: IBISWorld
Major Players
% = share of industry revenue
SWOT
STRENGTHS
Low Imports
Low Customer Class Concentration
WEAKNESSES
Low & Steady Barriers to Entry
High Competition
Low Profit vs. Sector Average
High Product/Service Concentration
Low Revenue per Employee
High Capital Requirements
OPPORTUNITIES
High Revenue Growth (2020-2025)
Trade-weighted index
THREATS
Low Revenue Growth (2005-2020)
Low Revenue Growth (2015-2020)
Low Outlier Growth
Low Performance Drivers
Demand from beef cattle production
7
IBISWorld.com
Hay & Crop Farming in the US 11199
Executive
Summary
August 2020
The Hay and Crop Farming industry produces hay, sugar beets and
other crops, including hops and herbs, agave, spices, tea and maple
sap.
The industry primarily provides products to cattle ranchers, food producers and
wholesalers. Most industry operators are dedicated to growing hay, which
producers either sell to cattle ranchers that use hay as feed or keep and use it for
their own cattle. Industry revenue has decreased at an annualized rate of 2.4% to
$27.5 billion over the five years to 2020, including a decrease of 11.1% in 2020
alone.
The industry has experienced mild revenue declines over the past five years due to
a steep decline in the price of corn and poor growing seasons in 2015 and 2016,
where both total yield and prices received by farmers decreased consecutively.
Demand from the Beef Cattle Production industry (IBISWorld report 11211), where
hay is used as feedstock, is essential for hay producers. Prices of alternative
livestock feeds, such as corn, have decreased over the five years to 2020. This has
negatively affected industry revenue and profit as hay has become a more
expensive cattle feed. Industry profit, measured as earnings before interest and
taxes, is expected to account for 3.7% of revenue in 2020. This industry is also
susceptible to significant volatility, as its performance is influenced by commodity
prices. Furthermore, economic fallout and supply chain disruptions from COVID-19
(coronavirus) are expected to weaken demand from downstream markets, such as
cattle ranchers, and lead to the decline in revenue for 2020.
Over the five years to 2025, the industry is expected to achieve revenue growth as
the economy recovers and commodity prices stabilize. The price of corn is
projected to rise in the outlook period, benefitting industry operators as the demand
for hay will likely increase. In addition to changing consumer preferences toward
organic meats and dairy, which raises demand for high-value organic hay, China's
booming dairy industry, which needs more alfalfa, offers an opportunity to industry
farmers to export products. IBISWorld anticipates industry revenue to increase at an
annualized rate of 1.5% to $29.6 billion over the five years to 2025.
8
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Industry Performance
Key External
Drivers
Demand from beef cattle production
Livestock farmers regularly purchase hay as feed for their herds. Demand for hay
usually increases during adverse weather conditions when the area of natural
pastures is lower. Demand from beef cattle production is expected to decrease in
2020. Additionally, the nature of demand with respect to consumer preferences and
international trade poses a potential threat to the industry.
Demand from food manufacturing
Downstream food manufacturers purchase most of the products within this
industry, including sugar beets, maple syrup, herbs and spices, for use in a range of
food products. Higher demand from food manufacturers lead to increased sales for
the industry. Demand from food manufacturing is expected to increase in 2020,
representing a potential opportunity for the industry.
Per capita sugar and sweetener consumption
Consumer preferences have shifted away from high-fructose corn syrup to more
natural sweeteners. This drives demand for industry products, such as sugar beets,
maple syrup and mint, which are used as replacement sweeteners. Per capita sugar
and sweetener consumption is expected to slightly decrease in 2020.
9
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Trade-weighted index
Despite the perishable nature of certain industry crops, they can still be traded
internationally. As a result, the industry is affected by changes in exchange rates. A
rise in the trade-weighted index (TWI) makes industry products relatively more
expensive, and thus, less attractive to international buyers, therefore increasing
imports. The TWI is expected to increase in 2020.
Threat of Natural Disaster
Weather conditions play an important role in determining crop yields and
production levels, given that favorable weather patterns boost crop yields. The
opposite occurs when weather conditions are extreme, especially regarding
droughts or floods. Conversely, adverse weather conditions reduce grazing
pastures can lift demand for corn to be used as livestock feed. Since the
occurrence of natural disasters and bad weather is highly unpredictable, the threat
of natural disaster is expected to remain stable in 2020.
Current
Performance
Revenue for the Hay and Crop Farming industry has decreased an
annualized 2.4% to $27.5 billion over the five years to 2020,
including a decline of 11.1% in 2020 alone.
Most of the industry is dedicated to the growing of hay, which producers either sell
to cattle ranchers that use hay as feed, or keep the hay and use it for their own
10
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
cattle. Other products, such as sugar beets, herbs and spices, are used to flavor
food. Declining revenue has been attributed to weakening demand for hay from
downstream livestock manufacturing markets. During the period, the price of corn,
an alternative cattle feed, fell, which made hay a less attractive product. A doubledigit decline in 2020 is projected as a result of the economic fallout from COVID-19
(coronavirus) and the supply chain disruptions to downstream markets. However,
natural spices and sweeteners have grown in popularity and demand from abroad
has risen, offering new opportunities for the industry.
Hay fluctuates
Hay is used as a substitute feed when primary feeds, such as corn,
become relatively more expensive.
The price of corn dropped 9.9% in 2015 and continued declining to $3.40 per bushel
in 2017, leading cattle ranchers to switch to a less expensive feed substitute.
Preceding this decline in price, hay farmers historically benefited from increased
demand for industry products from cattle ranchers, in turn driving revenue growth.
Corn is a major input in the production of ethanol and other biofuels, which the US
Environmental Protection Agency has increasingly required energy providers to use
in their products. However, early during the current period, energy markets began to
decline, which decreased demand for biofuel, and subsequently, corn. With corn
becoming less expensive, livestock providers switched back to corn as their primary
form of feed. Furthermore, in 2020 the price of corn is expected to fall 10.5%,
weakening industry demand further. Slow industry revenue growth has caused
unprofitable farmers to either exit the industry or switch their focus to different
crops. The number of industry enterprises has increased marginally at an
annualized rate less than 0.3% to 465,837 over the five years to 2020. Labor for the
industry has grown in value due to the adoption of new technologies that require a
knowledgeable and skilled workforce. As a result, wages have increased at an
annualized rate of 0.4% to $3.0 billion over the five years to 2020.
Adding value to products is limited in hay farming. Some farmers, however, are
taking advantage of organic hay farming for use in organic meat and dairy
production. Organic farming across all industries has experienced an increase in
popularity as consumers become more health-conscious. Organic hay, as the first
step in organic meat and dairy production, has experienced considerable growth.
While organic hay farming represents less than 1.5% of total hay acreage, according
to the US Department of Agriculture, the growth of this previously niche product
segment indicates profitability.
New flavors
The industry is also composed of a variety of other crops, such as
spices and sweeteners that are typically used in food preparation to
add additional flavor.
Natural spices and sweeteners have recently grown in popularity as consumer
preferences have shifted away from artificial flavoring to natural alternatives.
Recent health studies have proven that there are negative health consequences
associated with the consumption of high-fructose corn syrup (HFCS), which is
commonly found in soda, cereals and other types of processed food and drinks. In
11
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
place of HFCS, consumers have increasingly preferred natural sweeteners and
flavoring in the foods. Industry products, such as sugar beets, mint and maple
syrup, have subsequently benefited from this shift.
Refined sugar is perceived to be a healthier sweetener than HFCS. As a result, soda
and snack manufacturers have increasingly demanded refined sugar to flavor their
products. Sugar beets, which account for a significant share of sugar produced in
the United States, have experienced heightened demand as a result. Over the past
five years, the price of sugar has been highly volatile, with high spikes and dramatic
drops in prices. During these sugar price jumps, demand for sugar beets has
increased since refined sugar manufacturers substitute sugar beets for sugarcane
in refined sugar production. This has supported industry profit growth, measured as
earnings before interest and taxes, to account for 3.7% of revenue in 2020.
International demand rises
Industry imports have declined in recent years due to several
factors.
In the hay product segment, downstream beef cattle farmers tend to use hay
produced by neighboring farms or even their own farms, which has limited the need
for additional imported hay. In the sugar beet profit segment, tariff-rate quotas keep
the industry shielded from global sugar supplies and prices. Additionally, trade of
sugar beets is largely limited due to its highly perishable nature. The value of
industry imports has decreased at an annualized rate of 2.3% to $1.0 billion over the
five years to 2020. Consequently, imports' share of domestic demand has remained
steady at 4.0% of demand in 2020. Conversely, exports account for a growing share
of revenue, with growth driven mainly by hay exports. However, such growth has
been somewhat tempered by a strong US dollar over the past five years, which has
made domestic crops less attractive on the international market. The strength of
the US dollar relative to an international basket of currencies, measured by the
trade-weighted index, has risen over the five years to 2020. As a result, the value of
industry exports has fallen an annualized 1.2% to $2.4 billion during the same
period. Additionally, exports are expected to account for 8.8% of revenue in 2020.
Notably, Canada has increased its demand for industry products over the past five
years.
Historical Performance Data
Revenue
IVA
Employment
Exports
Imports
Wages
($m)
($m)
(Units)
(Units)
(Units)
($m)
($m)
2011
32,493
6,562
2012
33,033
6,565
485,701
485,524
519,103
2,179
482,264
482,091
516,444
2,453
2013
33,156
2014
32,408
6,123
474,031
473,853
508,703
2,845
6,432
465,972
465,794
501,801
2,514
2015
31,109
5,589
458,136
457,953
494,541
2016
30,932
5,406
450,399
450,193
2017
30,162
5,823
442,935
2018
31,308
6,343
486,467
2019
30,983
5,913
480,919
Year
12
Estab. Enterprises
($m)
Domestic
Demand
($m)
Price of
corn
($ per
bushel)
951
2,565
31,265
236
1,140
2,667
31,720
255
1,166
2,741
31,477
259
1,207
2,867
31,100
244
2,582
1,174
2,976
29,701
211
487,350
2,830
1,192
3,086
29,294
203
442,749
479,898
2,738
1,108
3,169
28,533
197
486,272
524,341
2,661
1,165
3,337
29,812
200
480,680
519,041
2,779
1,157
3,303
29,361
192
IBISWorld.com
Hay & Crop Farming in the US 11199
Year
2020
13
Revenue
IVA
($m)
($m)
(Units)
27,542
5,302
465,899
August 2020
Estab. Enterprises
Employment
Exports
Imports
Wages
($m)
Domestic
Demand
($m)
Price of
corn
($ per
bushel)
(Units)
(Units)
($m)
($m)
465,837
480,306
2,436
1,044
3,033
26,151
188
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Industry Outlook
Outlook
Revenue for the Hay and Crop Farming industry is expected to grow
in the outlook period, increasing an annualized 1.5% to $29.6 billion
over the five years to 2025.
Projected growth in demand for
price-premium organic hay from the
Beef Cattle Production industry
(IBISWorld report 11211) is an
opportunity for the industry, in
addition to rising sugar prices.
However, falling participation and
employment pose a potential threat
to the industry.
Organic farming's heyday
The industry's hay segment, which is primarily used to feed cattle
raised for meat and dairy, is expected to grow slightly over the five
years to 2025 as demand declines from the Beef Cattle Production
industry continue to reverse.
Per capita beef consumption, an indicator of demand for the Beef Cattle Production
industry, and therefore, effecting the Hay and Crop Farming industry, is anticipated
to decrease over the next five years. Consumers have become increasingly healthconscious in recent years, especially regarding the food they eat. Recent studies
have revealed positive health consequences associated with eating organic
products, and as a result, consumers have shifted toward purchasing this highquality meat. Therefore, the Beef Cattle Production industry has started producing
organic meats and dairy to meet consumer preferences. This, in turn, has increased
demand for high-value organic hay. Downstream farmers can only produce organic
beef by feeding the cattle a diet of organic feeds. To meet changing consumer
preferences for healthier foods, including organic beef, farmers will likely need to
change their beef production methods to include purchasing organic hay. However,
organic farming is expensive, but is expected to maintain industry profit. Profit,
measured as earnings before interest and taxes, is expected to account for 3.8% of
revenue in 2025.
Hay farmers are also likely to benefit from vertical integration. Unlike sugar beet
production, in which farmers have formed strong cooperatives that control most of
sugar refineries in the United States, hay producers are limited in their integration.
Hay farmers are likely to achieve greater financial success if they take on
processing and distribution activities in addition to production. Vertical integration
14
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
typically minimizes dependency on intermediaries and wholesalers, which could
bolster industry profit for operators.
Sugar beets find the sweet spot
Demand for sugar beets is expected to increase as the world price of
sugar increases over the five years to 2025.
Although refined sugar, which is created from sugar beets, is perceived as a
healthier sweetener than high-fructose corn syrup (HFCS), when the price of sugar
rises, soda and snack manufacturers are expected to opt to use less-expensive
sweeteners as a product input. Meanwhile, imports are expected to pose a threat to
this segment. Although tariff-rate quotas (TRQs) protect US sugar production,
Mexico is free to import sugar without duties under current trade agreements. TRQs
limit US consumers' access to most low-priced import alternatives, which will likely
enable Mexican sugar imports to dictate the domestic price. Therefore, while the
world price of sugar is expected to increase over the next five years, the price of
sugar is expected to increase at a slower rate during the same period. However, as
prices in the world market are still well below that of the domestic market, US
operators are still expected to be susceptible to import penetration and limited
export opportunities, further tempering segment growth for producers of sugar
beets. The newly instated US-Mexico-Canada-Agreement (USMCA) will likely
minimally influence trade in this industry further. Currently, the agreement opens
limited access to Canadian sugar producers into the US market.
The value of industry imports is expected to increase marginally at an annualized
rate of 0.8% to $1.1 billion over the five years to 2025, and is not expected to
drastically offset domestic production. Imports' share of domestic demand is
expected to remain constant, satisfying 3.9% of demand in 2025. However, the
value of exports is expected to continue to rise at an annualized rate of 2.0% to $2.7
billion over the five years to 2025 and will likely bolster the industry to offset the
effect of unfavorable import trends on industry revenue.
Over the five years to 2025, farmers will likely continue to diversify their crops to
avoid potential losses incurred from any single crops. For this reason, the number
of industry establishments is expected to decline at an annualized rate less than
0.1% to 465,119 locations over the five years to 2025, largely reflecting slow
industry revenue growth. Additionally, advancements in technology will likely
increase crop yields, which is output measured in tons produced per acre, and will
likely enable smaller tracts of land to produce more hay and other industry crops. In
the meantime, industry employment is expected to grow modestly at an annualized
rate of 0.6% to 495,841 workers over the five years to 2025.
Performance Outlook Data
Year
2020
2021
2022
2023
2024
2025
15
Revenue
IVA
Estab. Enterprises
($m)
($m)
(Units)
27,542
27,978
28,396
28,954
29,293
29,605
5,302
5,405
5,517
5,632
5,683
5,710
465,899
464,723
463,973
464,696
464,677
465,119
Employment
Exports
Imports
Wages
(Units)
(Units)
($m)
($m)
($m)
Domestic
Demand
($m)
465,837
464,082
462,802
462,939
462,524
462,624
480,306
482,958
485,735
490,480
493,116
495,841
2,436
2,498
2,549
2,610
2,651
2,691
1,044
1,050
1,059
1,074
1,082
1,088
3,033
3,056
3,079
3,115
3,136
3,156
26,151
26,529
26,906
27,419
27,724
28,002
Price of
corn
($ per
bushel)
188
187
189
190
192
194
IBISWorld.com
Hay & Crop Farming in the US 11199
Industry Life Cycle
The life cycle stage of this industry is
August 2020
Mature
LIFE CYCLE REASONS
IVA is growing at a slower rate than US GDP
Hay is well-established in the livestock feed market
New product introduction is limited
The Hay and Other Crop Farming industry is in a mature phase of its life cycle. This
is illustrated by the market saturation and limited introduction of new products.
Industry value added (IVA), which represents an industry's contribution to the overall
economy, is expected to increase at an annualized rate of 0.2% over the 10 years to
2025. Meanwhile, US GDP is forecast to grow an annualized 1.9% during the same
period. The divergence between these two growth rates demonstrates that the
industry's contribution to the US economy is relatively shrinking.
Common trends across all segments of the industry include the lack of new
markets and the decrease in total acreage harvested for the industry's crops.
Diverse, nonindustry-relevant crops are more profitable to farmers due to
economies of scope and the ability to rotate crops seasonally. Meanwhile, the
livestock feed market continues to be the primary source of demand for locally
grown hay. Although organic farming has emerged as a new source of demand, the
development of new uses has been very limited within the hay segment. Hay has
the potential to be used in biofuel production, while some excess sugar beet
products, such as pulp, are expected to be used as a feedstock for ethanol
production. Furthermore, future industry growth will likely be constrained by
16
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
producers' limited ability to introduce new products into the marketplace. Product
differentiation is largely restricted to improving quality. This requires producers to
change the characteristics of crops through new, genetically modified seed strains.
17
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Products and Markets
Supply Chain
KEY BUYING INDUSTRIES
KEY SELLING INDUSTRIES
1st Tier
1st Tier
Beef Cattle Production in the US
Water Supply & Irrigation Systems in the
US
Dairy Farms in the US
Hog & Pig Farming in the US
Sheep Farming in the US
2nd Tier
Breweries in the US
Horse & Other Equine Production in the
US
Farm Product Storage & Warehousing in
the US
Crop Services in the US
Farm, Lawn & Garden Equipment
Wholesaling in the US
Farm Supplies Wholesaling in the US
2nd Tier
Tractors & Agricultural Machinery
Manufacturing in the US
Coal & Natural Gas Power in the US
Fertilizer Manufacturing in the US
Products and
Services
Hay
The single largest product category in the Hay and Crop Farming
industry is hay, which accounts for an estimated 26.5% of revenue
in 2020.
Hays are typically classified as grass hays, legume hays, cereal grain hays, in
addition to mixed hays. However, industry products are subdivided into alfalfa hay
18
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
and other hay, which includes popular North American variants, such as Timothy,
Blue, Oat and Sudan hays. Alfalfa hay has a higher protein content than other hay
and is typically harvested between May and October. Although protein content
varies dependent on location, growing conditions and the genetic makeup of seeds,
early cut alfalfa generally contains between 16.0% and 20.0% protein and late cut
alfalfa is composed of 12.0% and 15.0% protein. Although it is the most popularly
produced hay product, alfalfa hay requires more water and fertilizer to grow and is
generally more susceptible to insect damage. The price for alfalfa hay is higher than
the price for any other hay, making it a larger share of this segment's share of
revenue.
Sugar beets
Sugar beets generate an estimated 4.4% of industry revenue in
2020.
This industry segment has been subject to fluctuations, representing changes in
production and prices as dictated by yields and world sugar prices. At the beginning
of the five years to 2020, low levels of production in Brazil caused the price of sugar
across the world to surge. This price volatility has trickled down to sugar beets as
well, with prices normalizing following Brazil's return to nominal sugar output. As a
result, this segment's share of revenue has increased over the past five years.
Other crops
Together, the various other crops produced by the industry comprise
the remaining portion of industry revenue Included in this segment
are other staples such as hops, representing 1.8% of industry
revenue, and mint and maple products, which represent 0.5% and
0.4% of industry revenue, respectively, in 2020.
Other crops in this segment include guar and a variety of herbs and spices. Revenue
growth of these crops has remained in line with overall industry revenue growth,
displaying increasing prices and production dependent on weather and yield. All
other crops account for 66.4% of revenue in 2020.
Demand
Determinants
Products included within the Hay and Crop Farming industry can be
broadly segmented into animal feed and food products.
The major factors determining demand include livestock production, price, food
processors and exchange rates.
Livestock production
Demand for hay and other crops that are used as animal feed is
directly derived from the amount of US livestock, such as cattle and
hogs, which are the biggest consumers of hay.
19
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
An increase in intensive livestock production can translate into greater demand for
hay to be used as animal feed. In 2020, due to COVID-19 (coronavirus), disruptions
in the supply chain for livestock farmers, despite a heightened demand for
products, led to a surplus of livestock and declining profit margins. This also made
livestock farmers more price conscious and more likely to substitute to less
expensive feeds. An increase in the price of hay may cause price sensitive animal
feed processors to switch production to alternative grain feed sources, thus
constraining demand. However, an increase of livestock producers reliant on
organic feed, such as organic hays, limits the amount of substitute products, thus
creating more inelastic demand resilient to price increases. Weather conditions can
also play a critical role in demand for hay for livestock feed. Adverse weather
conditions, such as droughts or floods, have strong effect on demand, as they
reduce the quality and quantity of natural grass pastures and grain harvests.
Price
Demand is also influenced by price ratios between hay and
alternative feeds.
Changes in the price of feeds are a function of available stocks and harvest
expectations. A relative rise in the price of hay stems demand and persuades
farmers to switch to other feeds such as corn. At the same time, the increased use
of corn and soybeans in biofuel production has increased their prices well above
historical averages, leading livestock farmers to largely demand alternative feeds,
such as hay and sugar beet pulp.
Food processors
In recent years, food consumption trends have shifted as
consumers have increasingly demanded less high fructose corn
syrup (HFCS) in their products compared with previous years due to
the negative health ramifications associated with HFCS.
This has led food processors to demand more organic spices and sweeteners, such
as those produced by this industry. For example, sugar beets, which are used in
refined sugar production, have experienced increased demand over the five years to
2020 since refined sugar is perceived to be slightly healthier than HFCS.
Exchange rates
The value of the US dollar dictates the price competitiveness of US
crop products.
Exports of US crops decrease when the US dollar depreciates, which subsequently
drives up prices, leading overseas buyers to favor crops from competing nations.
Alternatively, as the dollar appreciates, imports tend to become a more appealing
option to domestic consumers of industry products.
20
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Major Markets
Due to the diverse nature of crops produced by the Hay and Crop Farming industry,
revenue is generated through various segments, such as exports, sales to livestock
farmers and sales to manufacturing, wholesale and retail consumers.
Exports
In 2020, industry exports are expected to generate 8.8% of industry revenue. Due to
their proximity to the United States, Canada and Mexico are popular destinations for
US-grown hay and sugar beets. Both countries also benefit from trading terms
under the newly instated United States-Mexico-Canada Agreement (USMCA).
Exports' share of revenue is largely driven by alfalfa exports to Japan. For more
information, refer to the International Trade section of this report.
Livestock farmers
As the largest single product offered, hay is used primarily for livestock feed. When
feed prices rise, especially the price of corn, livestock farmers seek alternative
sources to provide their animals with the proper nutrients to assure their well-being.
Over the five years to 2020, corn prices have decreased which has weakened
demand for industry products since they are relatively more costly. Due to these
factors, livestock farmers account for 25.0% of industry revenue in 2020.
Other manufacturing, wholesale and retail consumers
The remaining industry products are sold to various consumers across multiple
industries for use in every kind of food process. Food manufacturers have recently
come to demand industry products, accounting for 21.9% of revenue in 2020.
Consumers' shift to demand more natural and organic options has driven food
manufacturers to demand more industry products. For example, the shift away
from high fructose corn syrup toward more natural sweeteners has benefited the
industry as it has driven demand for sugar beets, an industry product. Additionally,
the switch in consumer preference has caused wholesalers to scramble in search
of the organic and natural products that their downstream markets are demanding,
which has led such wholesalers to seek out industry products. Grocery wholesalers
are estimated to account for 20.3% of revenue in 2020. Finally, retail consumers
have begun to seek out crops sold by this industry to use in making their own foods
21
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
at home. Sales of this variety usually take place at farmers' markets or similar
events. Direct to retail consumers are expected to comprise 20.9% of revenue in
2020. All other markets account for 3.1% of revenue in 2020.
International
Trade
Exports in this industry are
Medium and Steady
Imports in this industry are
Low and Decreasing
Most products produced by the Hay
and Crop Farming industry are sold
domestically. Imports satisfy only a
minor portion of domestic demand
for both hay and sugar beets. The US
market for hay is substantial, with
livestock farmers accounting for the
bulk of demand. Likewise, sugar
beets are primarily sold locally
because the product is perishable
and requires fast processing before
it spoils. Furthermore, imports are
limited due to high import quotas.
Imports
The value of industry imports has
declined at an annualized rate of
2.3% to $1.1 billion over the five
years to 2020. Industry import levels
fluctuate based on many factors
including domestic feed prices,
cattle inventory and weather
conditions. After a fruitful crop yield
prior to the period due, farmers suffered unfavorable growing conditions in 2015
and 2016. In 2017, variable weather led to challenging conditions for isolated
regions, while others profited from above-average yields, according to The Farmer,
an agricultural industry publication. Consequently, imports' share of domestic
demand is expected to remain steady, satisfying 4.0% of demand in 2020. Due to its
proximity to the United States, Canada is the largest provider of hay and other
crops, accounting for 30.7% of imports in 2020. However, China has experienced a
decline due to trade headwinds and targeted agricultural tariffs. Industry-relevant
products imported from China are estimated to account for 7.3% of industry
imports in 2020.
Exports
The value of industry exports has decreased at an annualized rate of 1.2% to $2.4
billion over the five years to 2020. In 2020, exports are anticipated to generate 8.8%
of industry revenue. Japan accounts for the largest share of exports, accounting for
21.9% in 2020, with China accounting for 17.9% of exports and South Korea
22
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
accounting for 11.2% of exports. China's dairy industry has historically played a
major role as an importer of industry products. However, in light of recent trade
headwinds and agricultural focused tariffs, there has been uncertainty surrounding
how much demand would stem from China. China's total imports of industry
products have increased over the past five years, despite declining 15.4% between
2016 and 2017. China's large population and growth of its dairy herd, which has
been historically reliant on US industry exports, previously served as a major export
destination. Trade headwinds and uncertainty regarding future relations has,
however, tempered the outlook for export growth. Despite frictions present in
international trade, exports to other nations, such as Japan, Canada and South
Korea, have increased over the past five years, and remain a bright spot for the
industry. Demand from these nations is projected to offset any loss in export
revenue from China.
Additionally, the appreciation of the US dollar over the past five years has caused
domestic goods to become relatively more expensive on the international
marketplace, but this has not had a significant effect on industry exports. Most
industry products are consumed domestically for immediate livestock feed or food
processing. Sugar beets are especially difficult to transport because they must be
processed quickly after picking to avoid spoilage.
23
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Business
Locations
Business Concentration in the United States
WA
MT
ME
ND
OR
VT
MN
ID
WI
SD
NY
WY
MI
NV
PA
IA
NE
IL
UT
CO
KS
CA
NH
MA
CT RI
NJ
MD
DC DE
OH
IN
WV
MO
VA
KY
NC
AZ
TN
OK
NM
SC
AR
MS
GA
AL
LA
TX
FL
AK
HI
Percentage of Harvested acres (%)
0
3
6
9
Hay & Crop Farming in the US
Source: IBISWorld
The geographic spread in the Hay and Crop Farming industry differs based on each
crop. However, within each product segment, the geographic distribution is stable
from year to year because farms require specific soil and weather conditions to
grow the crops, and therefore, cannot easily relocate. Hay farming, for instance, is
generally concentrated in areas that have plentiful supplies of sunshine and rain.
Often, hay is grown in conjunction with corn, wheat and oats as part of a crop
rotation system. Furthermore, farmers may grow hay in lieu of other crops when
adverse weather patterns reduce the quality of grain crops. Other factors
influencing geographic spread include proximity to irrigation water, soil nutrition and
flat terrain.
Plains
According to the US Department of Agriculture, the Plains region accounts for the
largest share of industry establishments, with 30.6% of harvested acreage and
23.2% of industry-relevant crop production volume in 2020. More specifically, the
region is the top producer of alfalfa hay and sugar beets, both in terms of harvested
acres and production volume. Sugar beet production is largely concentrated in the
24
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Red River Valley area of North Dakota, Nebraska and Minnesota. Together, these
states account for more than half of US sugar beet production.
Southeast and Southwest
The Southeast region is the second-largest hub of industry establishments,
accounting for 19.3% of harvested acreage and 11.1% of the total production in
2020. In fact, this region is the largest producer of other hay crops, producing onethird of the national output. The Southwest region follows closely behind with
16.3% of harvested acreage and 10.3% of total production in 2020.
Other regions
Hops farming mainly takes place in Washington (79.4% of total US hops
production), with smaller-scale production also concentrated in Oregon (16.0%) and
Idaho (7.0%). Production of hops requires specific conditions, including volcanic
soil, moderate temperatures and abundant irrigation, which limit the geographic
spread of their production. Maple syrup production mainly occurs in New England,
primarily in Vermont (37.5% of production) and Maine (13.6%). Specific weather
conditions, namely freezing nights and warm days, are needed to stimulate maple
sap flows.
25
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Competitive Landscape
Market Share
Concentration
Concentration in this industry is
Low
The Hay and Crop Farming industry is
characterized by a low level of ownership
concentration compared with other
sectors of the US economy. The industry is
dominated by small- and medium-sized
farms, with average farm revenue
accounting for less than 0.1% of industry
sales. In many cases, farmers grow hay
and other crops and enter and exit the
industry in response to changing returns.
These conditions have been responsible
for the dispersed nature of hay production.
In the long term, however, pressure to
reduce costs and increase efficiency is
slowly causing the industry to shift toward
larger-scale centralized production.
Conversely, in the sugar beet segment, a large share of output is sold through
cooperatives, with almost half of all sugar beet farms belong to processing co-ops.
In the Red River Valley region of North Dakota, Nebraska and Minnesota, more than
90.0% of farms are shareholders in the American Crystal Sugar Company
(American Crystal), which is the largest US sugar beet producer. American Crystal
operates sugar factories in Minnesota, North Dakota and Montana.
In terms of employment distribution, the industry is characterized by many
operators that employ small workforces. In 2020, each farm employs an estimated
one worker, indicating that farming families only supplement their own labor with
hired labor during busy periods.
26
IBISWorld.com
Hay & Crop Farming in the US 11199
Key Success
Factors
August 2020
IBISWorld identifies 250 Key Success Factors for a business. The most important for this
industry are:
Appropriate physical growing conditions: Crop farming requires fertile soils. The
presence of fertile soils and other appropriate growing conditions plays a critical role in
shaping the success of farms, since it influences harvest levels and crop quality.
Economies of scale: Economies of scale in production generate cost savings for crop
growers. Specifically, economies of scale result in lower per unit growing costs that
ultimately result in higher net returns.
Ability to take advantage of government subsidies and other grants: Farmers in the
industry are eligible for support from the government that can form an important part of
their income. The ability to access these payments has a substantial effect on profit.
Production of premium goods/services: Farmers that produce premium quality crops
can demand higher prices in the market place.
Ability to alter goods and services produced in favor of market conditions: The
ability to alter the balance between various crops in response to changes in market
conditions is important for a farm's viability. Farmers need to be able to change their
production mix to maximize farm returns.
Establishment of export markets: The ability to secure overseas customers reduces a
farmer's reliance on sales and conditions in the domestic market.
Cost Structure
Benchmarks
27
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Profit
Profit for farmers in this industry is highly
volatile and depend on many factors, including
government subsidies and weather patterns.
IBISWorld estimates that profit, measured as
earnings before interest and taxes, accounts for
3.7% of revenue in 2020. Cattle farms seek out
hay as a feed substitute when corn and soybean
prices rise. The price of corn has decreased over
the five years to 2020, weakening demand for
hay and shrinking profits.
Wages
Wage costs are low for this industry, accounting
for an estimated 11.0% of revenue in 2020. The
overall low share of wages is due to the
presence of an extremely large number of
nonemployers and single-owner farms. Family
members have the choice of working elsewhere,
which a farmer may take advantage of by using
family labor. Labor expenses fluctuate annually
depending on the size of the harvest and
seasonal conditions, which may hinder total
crop yield, and thus, the need for excess labor.
Purchases
Purchases make up the largest expenditure for
industry farmers in 2020, comprising an
estimated 44.3% of revenue. This includes
expenditures on fertilizer, seeds and chemicals.
For hay farming, these costs are generally lower
than for other segments because hay requires
less pesticide spraying.
Depreciation
Depreciation costs account for 4.6% of revenue
in 2020, reflecting the relatively high level of
capital intensity within agriculture. All segments
within this industry use advanced technology to
improve yields. Maple tapping, for example,
involves vacuum pumps, reverse osmosis and
various types of evaporators to maximize
extraction while ensuring that the trees continue
to thrive.
28
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Marketing
In 2020, marketing expenditures are expected to
account for 0.4% of industry revenue. Marketing
expenses are relatively low, as operators
typically work directly with businesses and other
farmers, so the need for marketing is limited.
Rent
Rent is a significant expenditure for hay and
other crop farmers. Farmers can use their land
for other crops that may be more profitable. As
a result, IBISWorld accounts for this by
incorporating this potential loss into rent costs.
Additionally, some farmers rent some of the
land that they farm rather than own it all
outright. In 2020, rent costs account for an
estimated 10.7% of revenue.
Utilities
Utility costs are relatively high in the industry.
This is due to many of the crops sold by industry
operators needing large amounts of water to
grow properly. For example, the sugar beet
requires that 40.0% of the crop is irrigated for
proper growth. In the hay segment, only 15.0%
of an area planted is irrigated. Utility costs also
include fuels and oils used to operate the
machinery used to gather industry crops. Utility
expenditures account for 13.2% of revenue in
2020.
Other Costs
Other costs are expected to account for 12.1%
of industry revenue in 2020. Other costs include
administrative, distribution, legal and other
miscellaneous expenses.
29
IBISWorld.com
Hay & Crop Farming in the US 11199
Basis of
Competition
Competition in this industry is
August 2020
High and Steady
Internal competition
Within the Hay and Crop Farming industry, keeping production costs
low is a key competitive factor among growers because the market
sets prices.
In addition, crops grown by farmers are largely homogenous, with little
differentiation between outputs from different hay farms. Therefore, to achieve a
competitive advantage, farmers must use the most efficient equipment and
techniques that can help lower production costs and increase profit. Obtaining and
maintaining supply contracts also helps farmers compete. Many of the products in
this industry are used for livestock feed, snack food manufacturing or food
wholesaling, which require supply contracts to secure future sales. To keep supply
contracts and financial returns, it has become increasingly important for producers
to have consistent crop returns.
Crops can be differentiated by quality. For example, hay is assessed and graded
based on its moisture content, protein levels and texture. Premium graded hay
could demand a slightly higher price. However, quality is difficult to control, as it is
largely determined by external factors, such as growing conditions. Increasingly,
crop quality levels are determined by farmer-controlled factors, such as nutrition
and supplement injections.
External competition
The sources of external competition differ across product
segments.
Hay farmers compete with other businesses operating in the livestock feed market.
Notably, hay and hay mixtures experience heavy competition from coarse grains
such as corn and barley. Competition from these other grain farmers is often a
function of price levels. Import competition is still relatively limited, but may
increase in the future.
Sugar beet farmers experience competition from sugar cane growers. When the
price of beets increases relative to sugar cane, producers may prefer to use the less
30
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
costly input, although the refining techniques required are different and may limit
substitution. Another source of external competition is corn sweeteners, which can
be used instead of sugar. Import competition is expected to increase in the
downstream sugar industry. Maple syrup growers experience substantial import
competition because they only supply 30.0% of the domestic market. Canada, the
main supplier of imports, manufactures high-quality maple syrup, which also
attracts higher prices.
Barriers to Entry
Barriers to entry in this industry are
Overall, there are few barriers to entry
into the Hay and Crop Farming industry.
Generally, all inputs are readily available,
and producers can typically shift
between agricultural activities with ease,
with farms often for sale. Nonetheless,
two possible barriers include capital
investment requirements and problems
securing finance for such investment.
Low and Steady
Barriers to entry checklist
Competition
High
Concentration
Low
Life Cycle Stage
Mature
Technology Change
Medium
Regulation & Policy
Light
Industry Assistance
Medium
The establishment of crop farming
operations requires some investment.
New participants need to purchase land, machinery, such as harvesters and
tractors, and irrigation equipment for sugar beet crops. For existing field producers,
establishment costs are significantly lower. Farmers can simply alter their product
mix in response to changing market conditions. In most cases, existing farms
already have the skilled labor, land, machinery, fencing and buildings necessary to
begin operating in this industry.
Similar to many agricultural industries, the profitability of crop farming is volatile. It
depends on a range of exogenous factors that are beyond the control of farmers.
These include supply and demand forces in downstream industries and weather
conditions. Given this, traditional financing companies and banking institutions may
be reluctant to approve loans for establishment costs.
Industry
Globalization
31
Globalization in this industry
Medium and Steady
The level of globalization within the Hay and Crop Farming industry is moderate.
Although large-scale corporate farming has increased, most farms are still familyowned and operated, leaving little opportunity for foreign ownership. IBISWorld
does not expect the level of globalization to change drastically over the five years to
2025. Globalization is most apparent in international trade, which has expanded
over the five years to 2020, although it still plays a minor role in the industry overall.
For further detail on imports and exports, refer to the International Trade section of
this report.
IBISWorld.com
Hay & Crop Farming in the US 11199
32
August 2020
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Major Companies
Major Players
THERE ARE NO MAJOR PLAYERS IN THIS INDUSTRY
Other Players
Public information is limited regarding specific establishments that operate in the
Hay and Crop Farming industry. In addition, the industry's diversity makes it difficult
to identify common trends in farm structure. The US agricultural sector is generally
characterized by the presence of many small- and medium-sized farms. In most
instances, farms are managed and owned by families that have been operating in
the industry for several generations. Few farms contribute more than 0.5% to
industry revenue in 2020. Typical of most agricultural establishments, farms in the
industry frequently diversify into cereal farming or livestock activities. Farms that
produce wheat and soybeans also grow sugar beets. Hay farmers also raise
livestock, such as cattle, sheep or hogs. Such diversification is one method farmers
adopted to reduce the risks associated with volatile prices and changing weather
patterns.
AMERICAN CRYSTAL SUGAR COMPANY
Headquartered in Moorhead, MN, American Crystal Sugar Company (American
Crystal) is an agricultural cooperative corporation that is engaged in growing sugar
beets. The company is owned by over 2,700 growers in the Red River Valley of
North Dakota and Minnesota and is the largest sugar beet producer in the United
States. American Crystal is a vertically integrated cooperative and operates its own
sugar-refining factories in Minnesota, North Dakota and Montana under Sidney
Sugars Incorporated, US Sugar Corporation, Midwest Agri-Commodities Company
and ProGold LLC. The company also has invested in and built relationships with
marketing entities, and has recently begun a program investing in technology aimed
at protecting workers, increasing storage and productive capacity of its farms and
refining facilities and expanding profit into the future.
IBISWorld estimates that American Crystal will generate $509.3 million in industryrelevant revenue in 2020. Despite price volatility in 2015 and 2017, American Crystal
experienced significant revenue growth in 2016. However, revenue growth is
anticipated to slow in the latter half of the five years to 2020 and be further dragged
down by the effects of COVID-19 (coronavirus) in 2020.
33
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Operating Conditions
34
IBISWorld.com
Hay & Crop Farming in the US 11199
Capital Intensity
August 2020
The level of capital intensity is
High
Capital intensity is high within the Hay and
Crop Farming industry due to the significant
capital investment required to farm hay and
other crops. Labor costs are relatively low
within the industry due to many industry
operations being entirely run by the farm
owner's family. Also, most of the farming
activities, such as plowing, sowing and
harvesting, are now mechanized, enabling
farmers to use less labor and increase crop
quality. However, equipment, such as tractors
and bales, is expensive, and technological
advancements have increased the costs of
these items. These factors create a highly
capital-intensive industry. In 2020, industry
operators are expected to spend $0.42 on
capital investments for every $1.00 spent on
labor.
Technology And
Systems
Potential Disruptive Innovation: Factors Driving Threat of Change
Level
Factor
High
35
Ease of Entry
High
Rate of Entry
Low
Rate of
Innovation
Disruption
Description
Likely
A qualitative measure of barriers to entry.
Fewer barriers to entry increases the
likelihood that new entrants can disrupt
incumbents by putting new technologies
to use.
Likely
Annualized growth in the number of
enterprises in the industry, ranked against
all other industries. A greater intensity of
companies entering an industry increases
the pool of potential disruptors.
Unlikely
A ranked measure for the number of
patents assigned to an industry. A faster
rate of new patent additions to the
industry increases the likelihood of a
disruptive innovation occurring.
Low
Innovation
Concentration
Unlikely
A measure for the mix of patent classes
assigned to the industry. A greater
concentration of patents in one area
increases the likelihood of technological
disruption of incumbent operators.
Very Low
Market
Concentration
Very Unlikely
A ranked measure of the largest core
market for the industry. Concentrated core
markets present a low-end market or new
IBISWorld.com
Hay & Crop Farming in the US 11199
Level
August 2020
Factor
Disruption
Description
market entry point for disruptive
technologies to capture market share.
The industry is experiencing a low level of both the rate of new patents and the
concentration of patents in the industry. This creates an environment where the
threat of new technologies driving disruption is low.
This technology trend is underscored by structural factors that support new
entrants. An accommodative structure can create a situation where small entrants
can focus on less profitable albeit innovative industry entry points. Or, large
operators in other industries can leverage expertise in other areas to enter the
industry from a new angle.
Major market segments for industry operators are relatively diversified. The spread
of market segments suggests that there are limited entry points other than those
already served my incumbent operators.
The Hay and Crop Farming industry does not experience a high
degree of technological disruption.
Overall, the industry is well established, and structurally, there is little to disrupt.
This industry primarily produces and sells hay and other crops to businesses and to
some extent, to households directly. Currently, industry products are a necessity,
and there is not a significant portion of the population that is not being served by
industry operators. Therefore, it is challenging to disrupt this industry since demand
is captured and most technological innovations, such as genetically modified
disease and weather resistant seeds, direct-to-consumer ordering and crop
mapping technology can all be leveraged by industry operators as an operational
efficiency. Overall, this industry exhibits a low susceptibility to technology
disruption since products are a necessity and there is little to none underserved
populations.
The level of technology change is
Medium
The basic principles of the Hay and Crop Farming industry have not
changed in centuries.
Tilling, planting and harvesting remain the cornerstone activities of the industry.
However, the introduction of new technology and improved plant knowledge has
altered the way in which these activities are undertaken.
Hay technologies
In hay production, the introduction of mechanical harvesters in the
first half of the 20th century signaled a major development.
Innovations in the areas of irrigation, crop rotation and pesticides have also made
important contributions to the industry's technology base. These developments
36
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
have dramatically reduced labor requirements in hay farming. In addition, the
industry has developed a range of equipment and processes to assist in planting
and harvesting decisions. For example, moisture testing has been an important
development that has helped farmers better determine the ideal time to bale their
hay. The adoption of tarp covers has also helped reduce the risk of weather
damage to hay bales. Covers help farmers store bales outside for longer periods
without spoilage. The introduction of hay conditioners has helped farmers increase
hay crimping so that dry-down occurs at a faster rate. Furthermore, advances in hay
baling machinery mean that hay bales can be packed tighter and heavier, making
them easier to pack and store. With the growing use of genetically modified crops, a
new strain of hay called HarvXtra alfalfa has been designed to withstand poor
weather conditions and make farmer's cows more profitable by increasing the
forage usage of the livestock. HarvXtra reduces the amount of lignin in the plant,
which can limit the animal's ability to digest the hay.
Sugar beet technologies
The harvest of the sugar beet crop is almost entirely mechanized.
A 2016 survey conducted by the US Department of Agriculture (USDA) found that
nearly 40.0% of growers use precision agriculture technologies. The most common
technologies used are global positioning systems (GPS) and remote sensing, used
to adjust fertilizer and irrigation levels to soil and landscape conditions. Red River
Valley sugar beet farmers reported the highest use of precision technologies, while
the Plains and Northwest regions had the lowest use rates. Furthermore,
improvements in the processing techniques and advancements in sugar beet seed
varieties have brought about an increase in the yield of beet sugar per ton of beets.
More recently, scientists from the USDA Agricultural Research Service (ARS) have
developed a method for creating biodegradable plastic from sugar beet pulp, which
is the leftover product from sugar production. Specifically, ARS scientists combined
sugar beet pulp with biodegradable polylactic acid, thus making a plastic that
becomes soft when heated. This new type of plastic can be used in the
manufacture of a variety of containers, creating a new source of demand for
industry products.
37
IBISWorld.com
Hay & Crop Farming in the US 11199
Revenue Volatility
The level of volatility is
August 2020
Medium
Note: Revenue growth and decline reflective of 5-year annualized trend. Y-axis is in
logarithmic scale. Y-axis crosses at long-run GDP. X-axis crosses at high volatility
threshold.
Over the five years to 2020, the Hay and Crop Farming industry's
revenue volatility has been moderate with specific crops out
performing others.
Industry volatility is a function of world prices, global demand, weather conditions,
exchange rates and the level of profitability in alternative agriculture. However, the
extent of influence by these factors varies across segments. For example, sugar
beet producers are less affected by global supply and demand conditions for sugar
due to government intervention in the domestic sugar market; refer to the Industry
Assistance section for further detail.
Exchange rates largely influence the price-competitiveness of US exports in the
international market. However, since the industry is not heavily engaged in
international trade, exchange rate fluctuations have a limited effect on revenue.
Meanwhile, harvest volumes across all product segments are sensitive to seasonal
weather conditions. For instance, yield per acre can be shaped by growing
conditions. Yield has trended upward over time for most product segments as
technological advances have tempered weather's effects on crops.
Changes in demand for hay and other animal feed products result from livestock
population growth, as well as global production levels of substitute feed crops. This
was particularly volatile in 2020 as demand for beef grew but the supply chain was
disrupted, leading to a surplus of cattle for livestock farmers. Demand for sugar
beets and other food crops changes in response to price fluctuations and shifts in
diets and consumer preferences. Furthermore, favorable conditions in other
agricultural pursuits, such as wheat cropping, can encourage farmers to shift
resources away from hay or sugar beet production.
38
IBISWorld.com
Hay & Crop Farming in the US 11199
Regulation &
Policy
The level of regulation is
August 2020
Light and is Steady
Generally, the Hay and Crop Farming industry is regulated at the
county, state and federal levels.
At the county level, farms must comply with zoning bylaws and use land that has
been approved for field crops. Most states operate agricultural departments that
act as regulatory agencies. These authorities monitor pollution levels associated
with farming. At the national level, the two most influential regulatory agencies are
the Environmental Protection Agency (EPA) and the US Department of Agriculture
(USDA). The extent to which the industry is regulated can vary between geographic
regions.
EPA
The industry uses farm chemicals, which has given rise to concerns
about the environmental effects of crop growing.
Industry growers are subject to conditions relating to the use of fertilizers and
pesticides in production by the EPA. The EPA was given authority through the Food
Quality Protection Act. The agency's responsibilities include ensuring that pesticide
residues in food crops, such as sugar beets, stay within safety standards, and
serving as a watchdog for pollution control and usage of natural resources. The
effect of these regulations varies across the industry. For example, hay usually
requires fewer chemicals than many other field crops, therefore, hay farmers are
less affected by regulation compared with sugar beet growers.
USDA
The USDA controls the planting of genetically modified (GM) crops
and requires all growers of GM crops to obtain a permit before
planting.
According the USDA, almost 95.0% of planted sugar beets are genetically modified,
making government regulation that much more prominent. In addition, industry
operators cannot publicly claim that they produce organic crops without approval
from the USDA. To this end, producers must comply with standards established by
the USDA. The USDA releases national standards for organic production and
processing of agricultural crops and livestock. The uniform standards are designed
to meet demands of local and international customers seeking assurance that
crops have been organically grown. These standards include a demonstration by
producers that they are protecting natural resources, conserving biodiversity, and
using only approved crop, livestock and processing inputs. Furthermore, GM crops,
ionizing radiation, sewage sludge and most artificial pesticides and fertilizers are
prohibited from qualifying as organic production.
The sugar beet segment of this industry is regulated at the processor level.
However, these regulations affect sugar beet farmers. The aim of sugar regulation
is to control oversupply, which would depress prices and result in poor returns to
the producer. To control supply and maintain a high domestic price, the USDA
39
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
implements marketing allotments, which are allocated to individual states and
producers based on historical production. Producers can only sell sugar to the
market in accordance with their allotment; refer to the Industry Assistance section
for more information.
Industry
Assistance
The level of industry assistance is
Medium and is Steady
US Sugar Program
Sugar beet growers can receive marketing assistance loans, which
provide short-term liquidity and guarantee farmers a minimum
revenue for production.
However, most of the assistance to sugar beet farmers is administered indirectly,
through payments to sugar processors as part of the US Sugar Program. This is
because beets are perishable and must be processed into sugar before being
traded or stored. Processors participating in the US Department of Agriculture
(USDA) sugar loan program must agree to provide payments to beet farmers, and
the USDA has the authority to establish minimum payment amounts.
The 2008 Farm Bill made many changes to sugar policy, including an increase in the
sugar loan rate, a move to a domestic sales allowance for domestic producers and
the introduction of a limited sucrose ethanol program to support sugar producers
with excess supply of imports. However, the bill expired in September 2012,
threatening the Hay and Crop Farming industry. The government's tight budget
made farmers' subsidies uncertain in the next five years. Nevertheless, after some
consideration over how to move forward with the US Sugar Program, lawmakers
eventually agreed to preserve sugar beet price guarantees. Under the 2014 Farm Bill
sugar beet processors received a loan of 24.1 cents per pound for refined sugar in
2014. If the loan is not repaid, the USDA must accept the sugar pledged as
collateral as payment of the loan at maturity. Forfeit is withheld from the market,
supporting the price of sugar.
The loan program was initially designed so that there is no cost to the government
for running the program. To achieve this, the market price of sugar must exceed the
loan rate so that there is no incentive for producers to forfeit the loan. To maintain a
high enough market price, the USDA sets marketing allotments (rights to sell sugar)
such that the total marketing allotment is equal to sugar demand less import
obligations under the World Trade Organization. The allotment quantity may not be
less than 85.0% of sugar deliveries for human consumption. Therefore, an increase
in sugar imports is associated with the sugar policy being operated at a significant
cost to the government.
Tariff Rate Quota (TRQ)
In addition, farmers benefit from the TRQ system imposed on sugar
beet imports.
40
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
By supporting the domestic sugar processing industries, quotas imposed on sugar
imports ensure continuous demand for sugar beets. Presently, there is a TRQ on
sugar (a two-stage tariff, where imports up to the quota level enter at a rate of 0.625
cents per pound and imports more than this quota enter at 15.36 cents per pound
of raw sugar and 16.21 cents per pound of refined sugar).
Furthermore, sugar beets are subject to the Sugar Re-Exports Programs, which
include the Refined Sugar Re-Exports Program and the Sugar-Containing Products
Re-Export Program. Under the former, US sugar refiners can import raw, worldpriced sugar but must export refined sugar for sale to licensed manufacturers. The
latter program enables participants to import refined world-price sugar to use in
products that will be exported. Together, these re-export programs are the chief
source of US sugar exports. It is important to note that imports under this program
are not subject to the TRQs described above.
No tariffs are applicable to imports of hay into the United States, and there are
limited specific assistance programs targeting hay farmers. However, the US
government does offer a wide range of nontariff assistance to the farming
community for which hay producers can apply. Most assistance falls under the
Farm Act and include export promotion schemes, conservation programs and
emergency relief.
Most recently, the passage of the U.S.-Mexico-Canada Agreement (USMCA) poses
minimal changes that directly effect this industry. However, the USMCA grants a
limited amount of US sugar market access to Canada, making it more competitive
for domestic industry operators.
Indirect assistance
Currently, farmers can access direct assistance through the federal
government's Environmental Quality Incentives Program.
Under the program, farmers can obtain access to funding, advice and education
services for addressing resource issues. The program is designed to help farmers
use their land in the most environmentally friendly and cost-effective manner.
Additionally, in response to the economic fallout from COVID-19 (coronavirus) in
2020, the Farm Service Agency, Natural Resources Conservation Service, and Risk
Management Agency have established flexibility policies to aid US farmers. These
are additional measures to the greater CARES Act and the Coronavirus Food
Assistance Program which was passed in April 2020 and provides $16.0 billion in
financial support related to the pandemic. Crop insurance flexibilities, farm loan
flexibilities and commodity loan flexibilities are expected to further aid farmers
during the economic slowdown and uncertainty. The Paycheck Protection Program
(PPP) is another assistance program relevant to the industry that passed in
response to the pandemic and provides forgivable business loans.
Industry associations
Farmers have formed associations that lobby the government on
their behalf within each of the industry's segments.
41
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
In the hay segment, membership organizations include bodies such as the Idaho
Hay Association. The Red River Valley Sugar Beet Growers Association was
formally incorporated in 1954 and represents nearly 2,500 sugar beet growers who
are shareholder owners of the American Crystal Sugar Company, the largest beet
sugar producer in the United States. These associations use funds raised from
membership fees to represent the interests of growers, shippers and processors.
42
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Key Statistics
Industry Data
Year
Revenue
IVA
($m)
($m)
(Units)
32,493
33,033
33,156
32,408
31,109
30,932
30,162
31,308
30,983
27,542
27,978
28,396
28,954
29,293
29,605
6,562
6,565
6,123
6,432
5,589
5,406
5,823
6,343
5,913
5,302
5,405
5,517
5,632
5,683
5,710
485,701
482,264
474,031
465,972
458,136
450,399
442,935
486,467
480,919
465,899
464,723
463,973
464,696
464,677
465,119
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Annual Change
Year
Revenue
IVA
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(%)
6.45
1.66
0.37
-2.26
-4.01
-0.58
-2.49
3.79
-1.04
-11.1
1.58
1.49
1.96
1.17
1.06
(%)
14.7
0.05
-6.74
5.04
-13.1
-3.28
7.71
8.92
-6.78
-10.4
1.95
2.07
2.08
0.90
0.47
Key Ratios
43
Estab. Enterprises
Employment
Exports
Imports
Wages
(Units)
(Units)
($m)
($m)
($m)
Domestic
Demand
($m)
485,524
482,091
473,853
465,794
457,953
450,193
442,749
486,272
480,680
465,837
464,082
462,802
462,939
462,524
462,624
519,103
516,444
508,703
501,801
494,541
487,350
479,898
524,341
519,041
480,306
482,958
485,735
490,480
493,116
495,841
2,179
2,453
2,845
2,514
2,582
2,830
2,738
2,661
2,779
2,436
2,498
2,549
2,610
2,651
2,691
951
1,140
1,166
1,207
1,174
1,192
1,108
1,165
1,157
1,044
1,050
1,059
1,074
1,082
1,088
2,565
2,667
2,741
2,867
2,976
3,086
3,169
3,337
3,303
3,033
3,056
3,079
3,115
3,136
3,156
31,265
31,720
31,477
31,100
29,701
29,294
28,533
29,812
29,361
26,151
26,529
26,906
27,419
27,724
28,002
Price of
corn
($ per
bushel)
236
255
259
244
211
203
197
200
192
188
187
189
190
192
194
Estab. Enterprises
Employment
Exports
Imports
Wages
(%)
-1
-1
-1
-1
-1
-1
-2
9
-1
-7
1
1
1
1
1
(%)
13.2
12.6
16.0
-11.6
2.70
9.58
-3.27
-2.80
4.42
-12.4
2.54
2.04
2.38
1.59
1.48
(%)
16.9
19.8
2.34
3.45
-2.72
1.56
-7.05
5.13
-0.75
-9.70
0.48
0.86
1.49
0.68
0.57
(%)
0.71
3.99
2.77
4.60
3.78
3.69
2.67
5.31
-1.02
-8.20
0.75
0.75
1.17
0.66
0.65
Domestic
Demand
(%)
6.31
1.45
-0.77
-1.20
-4.50
-1.37
-2.60
4.48
-1.51
-10.9
1.45
1.42
1.91
1.11
1.00
Price of
corn
(%)
15.4
8.26
1.37
-5.72
-13.4
-4.03
-3.01
1.62
-3.91
-1.93
-0.70
1.12
0.31
1.00
1.19
(%)
-1
-1
-2
-2
-2
-2
-2
10
-1
-3
-0
-0
0
-0
0
(%)
-1
-1
-2
-2
-2
-2
-2
10
-1
-3
-0
-0
0
-0
0
Year
IVA/Revenue
Imports/Demand
Exports/Revenue
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
(%)
20.2
19.9
18.5
19.8
18.0
17.5
19.3
20.3
19.1
19.2
19.3
19.4
19.5
19.4
19.3
(%)
3.04
3.59
3.71
3.88
3.95
4.07
3.88
3.91
3.94
3.99
3.96
3.93
3.92
3.90
3.89
(%)
6.71
7.43
8.58
7.76
8.30
9.15
9.08
8.50
8.97
8.84
8.93
8.98
9.01
9.05
9.09
Revenue per
Employee
($'000)
62.6
64.0
65.2
64.6
62.9
63.5
62.8
59.7
59.7
57.3
57.9
58.5
59.0
59.4
59.7
Wages/Revenue
(%)
7.89
8.08
8.27
8.85
9.57
9.98
10.5
10.7
10.7
11.0
10.9
10.8
10.8
10.7
10.7
Employees per
estab.
Average Wage
1.07
1.07
1.07
1.08
1.08
1.08
1.08
1.08
1.08
1.03
1.04
1.05
1.06
1.06
1.07
4,941
5,165
5,389
5,714
6,018
6,332
6,603
6,365
6,364
6,314
6,327
6,339
6,351
6,359
6,366
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Industry Financial Ratios
April 2018 - March 2019 by company revenue
Liquidity Ratios
April 2015 March 2016
April 2016 March 2017
April 2017 March 2018
April 2018 March 2019
Current Ratio
Quick Ratio
Sales / Receivables (Trade Receivables Turnover)
Days' Receivables
Cost of Sales / Inventory (Inventory Turnover)
Days' Inventory
Cost of Sales / Payables (Payables Turnover)
Days' Payables
Sales / Working Capital
1.4
0.6
15.0
24.3
7.1
51.4
23.4
15.6
12.5
1.4
0.5
15.6
23.4
6.3
57.9
27.3
13.4
11.9
1.4
0.6
18.3
19.9
4.9
74.5
28.9
12.6
13.4
1.3
0.6
17.8
20.5
8.2
44.5
23.4
15.6
11.9
1.2
0.4
208.1
1.8
8.4
43.5
113.9
3.2
23.7
1.6
0.8
9.4
38.8
6.3
57.9
13.4
27.2
7.1
1.1
0.6
13.3
27.4
13.9
26.3
14.3
25.5
58.1
Coverage Ratios
Earnings Before Interest & Taxes (EBIT) / Interest
Net Profit + Dep., Depletion, Amort. / Current
Maturities LT Debt
3.2
3.3
2.7
2.0
2.0
3.3
4.1
2.7
3.6
2.0
4.1
2.6
6.9
Leverage Ratios
Fixed Assets / Net Worth
Debt / Net Worth
Tangible Net Worth
1.1
1.5
29.0
0.9
1.4
34.2
1.2
1.6
27.0
1.1
1.2
39.7
1.2
0.8
39.5
1.1
1.4
38.4
0.8
1.2
43.5
Operating Ratios
Profit before Taxes / Net Worth, %
Profit before Taxes / Total Assets, %
Sales / Net Fixed Assets
Sales / Total Assets (Asset Turnover)
10.6
3.8
3.0
1.1
7.8
2.7
3.3
1.2
6.2
2.1
2.6
1.0
8.4
4.1
2.4
1.0
8.3
4.6
1.4
0.7
7.6
3.3
3.5
1.0
13.2
4.0
3.8
1.2
Cash Flow & Debt Service Ratios (% of sales)
Cash from Trading
Cash after Operations
Net Cash after Operations
Cash after Debt Amortization
Debt Service P&I Coverage
Interest Coverage (Operating Cash)
29.2
9.3
9.5
2.5
2.4
6.0
30.7
7.3
7.6
0.3
1.4
5.5
32.7
4.8
5.7
-0.2
1.0
3.0
32.8
6.6
8.9
3.0
2.0
4.9
44.7
15.0
14.5
3.6
2.5
7.9
26.5
5.7
6.6
1.6
1.0
2.5
16.1
4.9
5.1
3.7
1.1
4.6
Assets, %
Cash & Equivalents
Trade Receivables (net)
Inventory
All Other Current Assets
Total Current Assets
Fixed Assets (net)
Intangibles (net)
All Other Non-Current Assets
Total Assets
Total Assets ($m)
6.2
14.6
19.1
3.8
43.7
45.9
4.1
6.3
100.0
2,450.1
6.5
12.3
19.6
4.5
42.9
40.3
4.5
12.4
100.0
3,377.0
7.0
10.7
17.7
5.8
41.2
45.2
4.5
9.1
100.0
2,704.6
7.4
11.3
14.4
4.4
37.5
48.4
5.7
8.4
100.0
2,626.8
7.3
9.2
12.0
1.9
30.4
58.6
3.9
7.2
100.0
276.4
6.7
14.8
17.4
7.4
46.3
37.3
6.8
9.5
100.0
1,408.3
9.8
9.8
14.8
5.9
40.3
39.8
10.2
9.6
100.0
942.2
Liabilities, %
Notes Payable-Short Term
Current Maturities L/T/D
Trade Payables
Income Taxes Payable
All Other Current Liabilities
Total Current Liabilities
Long Term Debt
Deferred Taxes
All Other Non-Current Liabilities
Net Worth
Total Liabilities & Net Worth ($m)
14.5
4.2
8.4
0.7
7.2
35.1
24.7
0.5
6.7
33.1
2,450.1
16.5
4.1
6.3
0.6
6.8
34.3
24.5
0.6
1.9
38.7
3,377.0
15.7
4.6
6.6
0.5
6.6
34.0
28.1
0.6
5.8
31.5
2,704.6
10.7
5.2
7.8
0.3
6.3
30.2
18.4
1.1
5.0
45.4
2,626.8
12.0
7.5
3.3
0.0
8.7
31.6
19.0
1.3
4.7
43.4
276.4
9.0
2.6
11.1
0.7
3.4
26.8
20.2
0.9
6.9
45.2
1,408.3
10.2
3.3
15.9
0.0
5.1
34.5
10.7
0.7
0.4
53.7
942.2
121.0
127.0
117.0
93.0
47.0
34.0
12.0
Maximum No. of Statements Used
Small (<
Medium
$10m) ($10m-50m)
Large (>
$50m)
Source: RMA Annual Statement Studies, rmahq.org. RMA data for all industries is derived directly from more than 260,000 statements of member
financial institution's borrowers and prospects.
44
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
Additional Resources
Additional
Resources
Hop Growers of America
http://www.usahops.org
US Department of Agriculture
http://www.usda.gov
US Census Bureau
http://www.census.gov
Hay and Forage Grower Magazine
http://www.hayandforage.com
Industry Jargon
BIOFUEL
A fuel consisting of or derived from dead biological material, usually plants.
COOPERATIVE (CO-OP)
A jointly owned, vertically integrated organization that produces and distributes goods for
the benefit of the owners.
GENETICALLY MODIFIED
A technique where specific changes are introduced into a plant or animal's DNA by genetic
engineering techniques. The most common modified foods include soybean, corn and
canola.
YIELD PER ACRE
The volume of crops that can be produced for every acre. This can apply to harvested
acreage or planted acreage.
Glossary Terms
BARRIERS TO ENTRY
High barriers to entry mean that new companies struggle to enter an industry, while low
barriers mean it is easy for new companies to enter an industry.
CAPITAL INTENSITY
Compares the amount of money spent on capital (plant, machinery and equipment) with
that spent on labor. IBISWorld uses the ratio of depreciation to wages as a proxy for capital
intensity. High capital intensity is more than $0.333 of capital to $1 of labor; medium is
$0.125 to $0.333 of capital to $1 of labor; low is less than $0.125 of capital for every $1 of
labor.
45
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
CONSTANT PRICES
The dollar figures in the Key Statistics table, including forecasts, are adjusted for inflation
using the current year (i.e. year published) as the base year. This removes the impact of
changes in the purchasing power of the dollar, leaving only the "real" growth or decline in
industry metrics. The inflation adjustments in IBISWorld’s reports are made using the US
Bureau of Economic Analysis’ implicit GDP price deflator.
DOMESTIC DEMAND
Spending on industry goods and services within the United States, regardless of their
country of origin. It is derived by adding imports to industry revenue, and then subtracting
exports.
EMPLOYMENT
The number of permanent, part-time, temporary and seasonal employees, working
proprietors, partners, managers and executives within the industry.
ENTERPRISE
A division that is separately managed and keeps management accounts. Each enterprise
consists of one or more establishments that are under common ownership or control.
ESTABLISHMENT
The smallest type of accounting unit within an enterprise, an establishment is a single
physical location where business is conducted or where services or industrial operations are
performed. Multiple establishments under common control make up an enterprise.
EXPORTS
Total value of industry goods and services sold by US companies to customers abroad.
IMPORTS
Total value of industry goods and services brought in from foreign countries to be sold in
the United States.
INDUSTRY CONCENTRATION
An indicator of the dominance of the top four players in an industry. Concentration is
considered high if the top players account for more than 70% of industry revenue. Medium
is 40% to 70% of industry revenue. Low is less than 40%.
INDUSTRY REVENUE
The total sales of industry goods and services (exclusive of excise and sales tax); subsidies
on production; all other operating income from outside the firm (such as commission
income, repair and service income, and rent, leasing and hiring income); and capital work
done by rental or lease. Receipts from interest royalties, dividends and the sale of fixed
tangible assets are excluded.
46
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
INDUSTRY VALUE ADDED (IVA)
The market value of goods and services produced by the industry minus the cost of goods
and services used in production. IVA is also described as the industry's contribution to GDP,
or profit plus wages and depreciation.
INTERNATIONAL TRADE
The level of international trade is determined by ratios of exports to revenue and imports to
domestic demand. For exports/revenue: low is less than 5%, medium is 5% to 20%, and high
is more than 20%. Imports/domestic demand: low is less than 5%, medium is 5% to 35%,
and high is more than 35%.
LIFE CYCLE
All industries go through periods of growth, maturity and decline. IBISWorld determines an
industry's life cycle by considering its growth rate (measured by IVA) compared with GDP;
the growth rate of the number of establishments; the amount of change the industry's
products are undergoing; the rate of technological change; and the level of customer
acceptance of industry products and services.
NONEMPLOYING ESTABLISHMENT
Businesses with no paid employment or payroll, also known as nonemployers. These are
mostly set up by self-employed individuals.
PROFIT
IBISWorld uses earnings before interest and tax (EBIT) as an indicator of a company’s
profitability. It is calculated as revenue minus expenses, excluding interest and tax.
REGIONS
West | CA, NV, OR, WA, HI, AK
Great Lakes | OH, IN, IL, WI, MI
Mid-Atlantic | NY, NJ, PA, DE, MD
New England | ME, NH, VT, MA, CT, RI
Plains | MN, IA, MO, KS, NE, SD, ND
Rocky Mountains | CO, UT, WY, ID, MT
Southeast | VA, WV, KY, TN, AR, LA, MS, AL, GA, FL, SC, NC
Southwest | OK, TX, NM, AZ
VOLATILITY
The level of volatility is determined by averaging the absolute change in revenue in each of
the past five years. Volatility levels: very high is more than ±20%; high volatility is ±10% to
±20%; moderate volatility is ±3% to ±10%; and low volatility is less than ±3%.
47
IBISWorld.com
Hay & Crop Farming in the US 11199
August 2020
WAGES
The gross total wages and salaries of all employees in the industry.
48
IBISWorld.com
IBISWorld helps you find the industry information
you need – fast
With our trusted research covering thousands of global industries, you’ll get a quick and intelligent overview of any industry
so you can get up to speed in minutes. In every report, you’ll find actionable insights, comprehensive data and in-depth
analysis to help you make smarter, faster business decisions.If you're not yet a member of IBISWorld, contact us at
+1-800-330-3772 or info@IBISWorld.com to learn more.
Disclaimer
This product has been supplied by IBISWorld Inc. ('IBISWorld') solely for use by its authorized licenses strictly in
accordance with their license agreements with IBISWorld. IBISWorld makes no representation to any other person with
regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and
disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or
incurred by any other person resulting from the use of, or reliance upon, the data or information contained herein.
Copyright in this publication is owned by IBISWorld Inc. The publication is sold on the basis that the purchaser agrees not
to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or
quotes from the material in this publication - in papers, reports, or opinions prepared for any other person - it is agreed that
it will be sourced to: IBISWorld Inc.
Copyright 2020 IBISWorld Inc.
IBISWorld.com
+1-800-330-3772
info@IBISWorld.com