Industry Analysis & Industry Trends
The Soybean Farming industry experienced strong growth over the five years to 2013, mainly due to the crop's status as a major input for biofuel. The Renewable Fuels Regulations of 2010 allowed Canada to use soybeans as a renewable energy source to make biodiesel. Through the next five years, domestic and international government mandates for renewable fuel will keep soybean prices above historical levels for the five-year period. Also, demand from emerging nations like China will keep exports high, expanding another revenue stream for the Soybean Farming industry. Strengthening overseas competition is anticipated to keep revenue volatile, though... purchase to read more
Industry Report - Industry Investment Chapter
Capitalization in the Soybean Farming industry is high, as most farming activities such as ploughing, sowing and harvesting are mechanized. Tractors, storage mills and irrigation systems are common features on soybean farms and are treated as depreciable assets. Although technological advancements make these items increasingly costly, they also allow farmers to use less labour and ensure a higher-quality, consistent crop. Consequently, labour requirements in the industry are growing at a slower rate in response to advancements in farm equipment.
Labour is not a fixed cost, so it fluctuates in response to changing industry and economic conditions. In addition, a large portion of paid labour is seasonal. Demand for labour is highest during planting, cultivation and harvest periods... purchase to read more