US Seed market by Type of Crops (Corn, Cotton, Soyabean, Wheat, Rice, Grain Sorghum, Oats, Vegetable Seeds), By Technology (Hybrid, GM Seeds, Open Pollinated), by Region, and Market Share of Major Seed Manufacturers (Monsanto, Syngenta, Bayer Cropscience, LimaGrain, Rjik Zwaan, Sakata, Bejo, Dupoint)
Lower output prices have impacted corn seed market with substitution effect witnessed to Soybeans from US Farmers
Seed companies are prudent to plan the inventories based on commodity prices, trait adoption or hybrid selection
Ken Research in its latest study, The US Seed Market Outlook to 2022 – By Crop Type (Corn, Cotton, Soyabean, Wheat, Rice, Grain Sorghum, Oats, Vegetable Seeds), by Open Pollinated, Hybrid and Genetically Modified Seeds, suggested that with seed traits in corn, soybean, canola, cotton, sugar beet and alfalfa, around 80-90% of the US cultivated area is planted with genetically engineered technology which equates to around 95% of the world GM crops area for corn, soybean, canola and sugar beet combined.
The US Seed industry is the largest seed market in the world with the land under cultivation of 911 million acres and average farm size of 442 acres in 2016. The US and Canada combined together contributed around 10% of the global planted area and over 50% of the global GM crops area. Around 70% of the cultivated area is sowed with corn, soybean and wheat, which fluctuate every year but are largely equal in terms of significance, followed by canola, alfalfa, cotton and barley.
The country’s seed economics are largely driven by commodity prices, hybrid breed selection and crop rotation cycle, farm holding structure. In many regions in the US, farmers’ economics are not favorable in terms of cost to farm income. Rising input cost and falling agricultural commodity prices have led to rapid plunge in farm income. Corn, cotton and soybeans have seen higher rise in input cost vis a viz production value from farmers perspective in the last year. After three successive years of weakened performance, agriculture crop profits are expected to decline in 2017.
The cash income from crop sales during the 2017 is expected to be around USD 190 billion, a decline of USD 3.8 billion i.e. 2.0% from 2016. Corn receipts are expected to decline for the fifth successive year by 0.5% in 2017 as the U.S. average corn price is estimated to drop in this year. Despite an expected rise in wheat prices, wheat receipts are estimated to decline by USD 0.5 billion from 2016 due to an expected de-growth in wheat quantities sold. Lower soybean receipts (USD 3.2 billion or 7.6%) in 2017 underscore a reduction in quantity sold which is more than offsetting increase in soybean prices. Receipts from Rice are estimated to decline by 4.5% in 2017 which will reflect a reduced average commodity price and quantities sold. The expected growth of USD 2.2 billion or 37.2 % in 2017 cotton receipts will be underscore by a large growth in the quantity of upland cotton sold.
The US is the foremost adopter of GM traits and has the largest number of traits used per hectare. It is anticipated in the coming years, the seed industry will witness the acquisition of some of the private seed companies specialized in 1-2 hybrid crop variants by companies that have invested heavily in the research and development of biotechnology traits. These acquisitions are anticipated in vegetable and fruit seed market.
Key Topics Covered in the Report
Agricultural Farm Income in US
United States Seed Competition
Commercial Seed Sales in United States
US Cotton Seed Market
Average Farm Size in US
US Seed Market
US Seed Market Overview
US Seed Industry Economics
Farm Holding Structure in US
Cash Receipt US Soybean
Syngenta Sale seed in US
Soybean Seed Export US
US Fruits and Vegetable Seed Consumption
Genetically Modified Seed Market US
Monsanto Market Share US Seed Industry
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Ankur Gupta, Head Marketing & Communications