NAICS Code 111998-07 - General Farms-Primarily Crop

Marketing Level - NAICS 8-Digit

Use Data For:

  • Direct Mailing
  • Emailing
  • Calling
  • Research

Includes Free Sample & Industry Report

Total Companies

1,702

100% Phone-Verified, NCOA Processed, Accurate Data

NAICS Code 111998-07 Description (8-Digit)

General Farms-Primarily Crop is a subdivision of the NAICS Code 111998 that encompasses establishments primarily engaged in farming crops, such as fruits, vegetables, grains, and tobacco. This industry involves the cultivation of crops on a large scale for commercial purposes. General Farms-Primarily Crop may also include the production of nursery and greenhouse products, such as flowers, shrubs, and trees.

Hierarchy Navigation for NAICS Code 111998-07

Tools

Tools commonly used in the General Farms-Primarily Crop industry for day-to-day tasks and operations.

  • Tractor
  • Plow
  • Harrow
  • Seeder
  • Irrigation system
  • Combine harvester
  • Cultivator
  • Sprayer
  • Fertilizer spreader
  • Grain dryer

Industry Examples of General Farms-Primarily Crop

Common products and services typical of NAICS Code 111998-07, illustrating the main business activities and contributions to the market.

  • Corn farming
  • Wheat farming
  • Soybean farming
  • Fruit farming
  • Vegetable farming
  • Tobacco farming
  • Cotton farming
  • Sugar beet farming
  • Sunflower farming
  • Pumpkin farming

Certifications, Compliance and Licenses for NAICS Code 111998-07 - General Farms-Primarily Crop

The specific certifications, permits, licenses, and regulatory compliance requirements within the United States for this industry.

  • USDA Organic Certification: This certification is required for farms that produce organic crops. It ensures that the crops are grown without the use of synthetic fertilizers, pesticides, or genetically modified organisms. The certification is provided by the United States Department of Agriculture (USDA).
  • Good Agricultural Practices (GAP) Certification: This certification is voluntary but highly recommended for farms that sell their crops to retailers or wholesalers. It ensures that the crops are grown, harvested, and packaged in a safe and sanitary manner. The certification is provided by the USDA.
  • Globalg.a.p. Certification: This certification is an internationally recognized standard for agricultural production. It ensures that the crops are grown in a sustainable and environmentally friendly manner. The certification is provided by the GlobalG.A.P. organization.
  • Safe Quality Food (SQF) Certification: This certification is required by many retailers and food service providers. It ensures that the crops are grown, harvested, and packaged in a safe and sanitary manner. The certification is provided by the Safe Quality Food Institute.
  • National Organic Program (NOP) Certification: This certification is required for farms that produce organic crops. It ensures that the crops are grown without the use of synthetic fertilizers, pesticides, or genetically modified organisms. The certification is provided by the USDA.

History

A concise historical narrative of NAICS Code 111998-07 covering global milestones and recent developments within the United States.

  • The General Farms-Primarily Crop industry has a long history worldwide, dating back to the earliest days of agriculture. In the United States, the industry has seen significant growth and change over the past century. In the early 1900s, the industry was dominated by small family farms, but the introduction of new technologies and government policies led to the consolidation of farms and the rise of large-scale commercial agriculture. In recent years, the industry has faced challenges such as climate change, labor shortages, and changing consumer preferences, but has also seen innovations in precision agriculture, sustainable farming practices, and direct-to-consumer marketing.

Future Outlook for General Farms-Primarily Crop

The anticipated future trajectory of the NAICS 111998-07 industry in the USA, offering insights into potential trends, innovations, and challenges expected to shape its landscape.

  • Growth Prediction: Stable

    The future outlook for the General Farms-Primarily Crop industry in the USA is positive. The industry is expected to grow in the coming years due to the increasing demand for organic and locally grown produce. The industry is also expected to benefit from advancements in technology, such as precision agriculture, which can help farmers increase yields and reduce costs. However, the industry may face challenges such as climate change, water scarcity, and labor shortages, which could impact production and profitability. Overall, the industry is expected to continue to play a vital role in the US economy and food supply chain.

Industry Innovations for NAICS Code 111998-07

Recent groundbreaking advancements and milestones in the General Farms-Primarily Crop industry, reflecting notable innovations that have reshaped its landscape.

  • Vertical Farming: This innovation involves growing crops in vertically stacked layers, using artificial lighting and climate control systems. This method can increase yields and reduce water usage, making it an attractive option for urban areas with limited space and resources.
  • Precision Agriculture: This technology uses sensors, drones, and other tools to collect data on soil conditions, weather patterns, and crop growth, allowing farmers to optimize their use of resources and increase yields.
  • Hydroponics: This method of growing crops involves using nutrient-rich water instead of soil, allowing for faster growth and higher yields. Hydroponics can also reduce water usage and eliminate the need for pesticides and herbicides.
  • Sustainable Farming Practices: Many farmers are adopting sustainable practices such as crop rotation, cover cropping, and reduced tillage to improve soil health, reduce erosion, and conserve water.
  • Direct-To-Consumer Sales: Some farmers are bypassing traditional distribution channels and selling their products directly to consumers through farmers' markets, community-supported agriculture (CSA) programs, and online platforms. This can increase profits and build customer loyalty.

Required Materials or Services for General Farms-Primarily Crop

This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the General Farms-Primarily Crop industry. It highlights the primary inputs that General Farms-Primarily Crop professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Equipment

Cultivators: Tools used for tilling and aerating the soil, important for weed control and improving soil structure to promote healthy crop growth.

Fencing Materials: Materials used to construct barriers around fields to protect crops from wildlife and livestock, essential for safeguarding agricultural investments.

Grain Bins: Storage structures for harvested grains, essential for protecting crops from spoilage and pests while maintaining quality until sale.

Harvesters: Machines that efficiently gather mature crops from the fields, significantly reducing labor costs and time during the harvest season.

Irrigation Systems: Systems designed to deliver water to crops in a controlled manner, crucial for maintaining optimal moisture levels and ensuring healthy crop growth.

Seeders: Machines that plant seeds at the correct depth and spacing, essential for ensuring uniform crop emergence and maximizing yield potential.

Tractors: Powerful vehicles used for plowing, tilling, and planting crops, essential for increasing efficiency and productivity in large-scale farming operations.

Weed Control Equipment: Tools and machines designed to manage weed growth, essential for reducing competition for nutrients and water among crops.

Material

Compost: Decomposed organic matter used to enrich soil, enhancing its fertility and structure, which is vital for sustainable crop production.

Cover Crops: Plants grown primarily to improve soil health and prevent erosion, crucial for maintaining sustainable farming practices and enhancing soil fertility.

Fertilizers: Nutrient-rich substances applied to soil or plants to enhance growth and yield, vital for maximizing crop production and quality.

Mulch: Organic or synthetic materials spread on the soil surface to retain moisture, suppress weeds, and improve soil health, crucial for sustainable farming practices.

Organic Amendments: Natural materials added to soil to improve its physical and chemical properties, crucial for enhancing soil fertility and crop health.

Pesticides: Chemicals used to control pests and diseases that threaten crop health, important for protecting yields and ensuring food safety.

Planting Guides: Resources that provide information on optimal planting times and techniques, crucial for maximizing crop yields and ensuring successful harvests.

Service

Agricultural Consulting: Expert advice on best practices, crop selection, and farm management strategies, helping farmers to improve efficiency and profitability.

Crop Insurance: Financial protection against crop loss due to natural disasters or market fluctuations, providing farmers with security and peace of mind.

Equipment Maintenance Services: Professional services that ensure farming equipment is kept in optimal working condition, preventing breakdowns and ensuring efficient operations.

Soil Testing Services: Professional services that analyze soil composition and health, providing farmers with critical information to optimize crop production and sustainability.

Transportation Services: Logistical support for moving harvested crops to markets or processing facilities, vital for ensuring timely sales and reducing spoilage.

Products and Services Supplied by NAICS Code 111998-07

Explore a detailed compilation of the unique products and services offered by the General Farms-Primarily Crop industry. This section provides precise examples of how each item is utilized, showcasing the diverse capabilities and contributions of the General Farms-Primarily Crop to its clients and markets. This section provides an extensive list of essential materials, equipment and services that are integral to the daily operations and success of the General Farms-Primarily Crop industry. It highlights the primary inputs that General Farms-Primarily Crop professionals rely on to perform their core tasks effectively, offering a valuable resource for understanding the critical components that drive industry activities.

Material

Flowers: Cultivated in greenhouses or fields, flowers such as roses and lilies are grown for decorative purposes. They are commonly sold to florists, event planners, and directly to consumers for occasions like weddings and holidays.

Fresh Fruits: These are cultivated and harvested directly from orchards and fields, providing consumers with a variety of options such as apples, oranges, and berries. Fresh fruits are commonly used in households for snacking, cooking, and juicing, contributing to a healthy diet.

Grains: Grains like corn, wheat, and rice are cultivated on a large scale and serve as staple foods for many populations. They are processed into various products, including flour and cereals, and are vital for both human consumption and animal feed.

Herbs and Spices: These are cultivated for their aromatic properties and are used to enhance the flavor of food. Common examples include basil, cilantro, and pepper, which are sold fresh or dried to consumers and restaurants.

Nut Crops: These include various types of nuts such as almonds and walnuts, which are cultivated for their edible seeds. Nut crops are harvested and processed for direct consumption or used in products like nut butter and snacks.

Organic Produce: This includes fruits and vegetables grown without synthetic fertilizers or pesticides, appealing to health-conscious consumers. Organic produce is often sold at premium prices in grocery stores and farmers' markets.

Seedlings: Young plants that are sold to gardeners and farmers for cultivation. Seedlings are essential for starting new crops and are often sold in trays or pots, providing a head start for home gardeners and commercial growers.

Shrubs and Trees: These plants are often grown for landscaping and ornamental purposes. Nurseries provide a variety of shrubs and trees to homeowners and businesses looking to enhance their outdoor spaces.

Tobacco: This crop is grown primarily for its leaves, which are harvested and processed for use in products like cigarettes and cigars. Tobacco farming requires specific conditions and expertise, and the final products are widely consumed in various forms.

Vegetables: This category includes a wide range of produce such as carrots, lettuce, and tomatoes, which are grown in fields or greenhouses. Vegetables are essential for meal preparation and are often sold at grocery stores, farmers' markets, and restaurants.

Comprehensive PESTLE Analysis for General Farms-Primarily Crop

A thorough examination of the General Farms-Primarily Crop industry’s external dynamics, focusing on the political, economic, social, technological, legal, and environmental factors that shape its operations and strategic direction.

Political Factors

  • Agricultural Policy

    Description: Agricultural policy in the United States significantly influences the operations of crop farming, including subsidies, crop insurance, and support programs. Recent changes in policy, particularly those aimed at sustainability and climate resilience, have shifted funding and support towards environmentally friendly practices.

    Impact: These policies can enhance profitability for farmers who adopt sustainable practices, while those who do not may face increased operational costs. The indirect effects include shifts in market dynamics as consumer preferences align with sustainable products, impacting long-term viability for traditional farming methods.

    Trend Analysis: Historically, agricultural policies have evolved with changing political landscapes, with a recent trend towards more stringent environmental regulations. The current trajectory suggests a continued focus on sustainability, with a high level of certainty regarding the influence of these policies on farming practices and market conditions.

    Trend: Increasing
    Relevance: High
  • Trade Agreements

    Description: Trade agreements play a crucial role in the agricultural sector, affecting the import and export of crops. Recent negotiations, particularly under the USMCA, have altered trade dynamics, impacting the competitiveness of U.S. crops in international markets.

    Impact: Changes in trade agreements can lead to increased market access for U.S. farmers, enhancing export opportunities. Conversely, unfavorable terms can result in reduced competitiveness against foreign producers, affecting domestic prices and profitability.

    Trend Analysis: The trend in trade agreements has been fluctuating, with recent developments indicating a move towards more protectionist policies. The level of certainty regarding future trade negotiations remains medium, influenced by global economic conditions and domestic political pressures.

    Trend: Stable
    Relevance: Medium

Economic Factors

  • Commodity Prices

    Description: Commodity prices for crops such as grains, fruits, and vegetables are influenced by various factors including supply chain dynamics, weather conditions, and global market trends. Recent volatility in commodity prices has created uncertainty for farmers in planning and budgeting.

    Impact: Fluctuating commodity prices can significantly affect revenue and profitability, forcing farmers to adapt their production strategies. High prices can lead to increased investment in crop production, while low prices may necessitate cost-cutting measures, impacting operational stability.

    Trend Analysis: The trend of commodity prices has shown considerable volatility over the past few years, with predictions indicating continued fluctuations due to global supply chain disruptions and climate impacts. The level of certainty regarding these trends is medium, driven by external economic factors and market demand.

    Trend: Decreasing
    Relevance: High
  • Consumer Demand for Local Produce

    Description: There is a growing consumer preference for locally sourced produce, driven by health consciousness and sustainability concerns. This trend has been particularly pronounced in urban areas where consumers seek fresh, organic options.

    Impact: Increased demand for local produce presents opportunities for farmers to enhance their market presence and profitability. However, failure to meet this demand can result in lost market share to competitors who effectively capitalize on local sourcing trends.

    Trend Analysis: The trend towards local produce has been steadily increasing, supported by consumer advocacy for sustainability and health. The level of certainty regarding this trend is high, as it is reinforced by demographic shifts and changing consumer behaviors.

    Trend: Increasing
    Relevance: High

Social Factors

  • Health and Nutrition Awareness

    Description: The rising awareness of health and nutrition among consumers is influencing their purchasing decisions, leading to increased demand for fresh fruits and vegetables. This trend is particularly strong among younger demographics who prioritize healthy eating.

    Impact: This factor positively affects crop farming, as farmers who can provide fresh, nutritious products are likely to see increased sales and market share. However, those who do not adapt to these preferences may struggle to remain competitive.

    Trend Analysis: Health and nutrition awareness has been on an upward trajectory for several years, with a high level of certainty regarding its continued influence on consumer behavior. This trend is driven by increased access to information and public health campaigns promoting healthy eating.

    Trend: Increasing
    Relevance: High
  • Sustainability Concerns

    Description: Consumers are increasingly concerned about the environmental impact of agricultural practices, leading to a preference for sustainably produced crops. This shift is prompting farmers to adopt more eco-friendly practices to meet consumer expectations.

    Impact: Adopting sustainable practices can enhance brand loyalty and attract environmentally conscious consumers. However, transitioning to these practices may involve significant upfront costs and operational changes, which can be challenging for some farmers.

    Trend Analysis: The trend towards sustainability in agriculture has been steadily increasing, with a high level of certainty regarding its future trajectory. This shift is supported by consumer preferences and regulatory pressures for more sustainable food production methods.

    Trend: Increasing
    Relevance: High

Technological Factors

  • Precision Agriculture Technologies

    Description: The adoption of precision agriculture technologies, such as GPS-guided equipment and data analytics, is transforming crop farming. These technologies enable farmers to optimize inputs and improve yields, enhancing overall efficiency.

    Impact: Investing in precision agriculture can lead to significant cost savings and increased productivity, allowing farmers to remain competitive in a challenging market. However, the initial investment can be substantial, posing a barrier for smaller operators.

    Trend Analysis: The trend towards precision agriculture has been growing, with many farmers adopting new technologies to improve efficiency and sustainability. The level of certainty regarding this trend is high, driven by advancements in technology and increasing pressure to optimize resource use.

    Trend: Increasing
    Relevance: High
  • E-commerce in Agriculture

    Description: The rise of e-commerce is changing how consumers purchase agricultural products, with online sales channels becoming increasingly important. This shift has been accelerated by the COVID-19 pandemic, which altered shopping behaviors significantly.

    Impact: E-commerce presents opportunities for farmers to reach a broader audience and increase sales. However, it also requires navigating logistics and supply chain complexities associated with online sales, which can be challenging for traditional farming operations.

    Trend Analysis: The growth of e-commerce in agriculture has shown a consistent upward trajectory, with predictions indicating continued expansion as more consumers prefer online shopping. The level of certainty regarding this trend is high, influenced by technological advancements and changing consumer habits.

    Trend: Increasing
    Relevance: High

Legal Factors

  • Food Safety Regulations

    Description: Food safety regulations govern the production and processing of crops, ensuring they meet health standards. Recent updates to these regulations have increased scrutiny on farming practices and supply chains.

    Impact: Compliance with food safety regulations is critical for maintaining consumer trust and avoiding legal repercussions. Non-compliance can lead to product recalls, financial losses, and damage to brand reputation, making it essential for farmers to prioritize safety measures.

    Trend Analysis: The trend towards stricter food safety regulations has been increasing, with a high level of certainty regarding their impact on the industry. This trend is driven by public health concerns and high-profile food safety incidents that have raised awareness.

    Trend: Increasing
    Relevance: High
  • Labor Regulations

    Description: Labor regulations, including minimum wage laws and worker safety requirements, significantly impact operational costs in crop farming. Recent changes in labor laws in various states have raised compliance costs for producers.

    Impact: Changes in labor regulations can lead to increased operational costs, affecting profitability and pricing strategies. Farmers may need to invest in workforce training and compliance measures to avoid legal issues, impacting overall operational efficiency.

    Trend Analysis: Labor regulations have seen gradual changes, with a trend towards more stringent regulations expected to continue. The level of certainty regarding this trend is medium, influenced by political and social movements advocating for worker rights.

    Trend: Increasing
    Relevance: Medium

Economical Factors

  • Climate Change Impacts

    Description: Climate change poses significant risks to crop farming, affecting crop yields and quality. Changes in temperature and precipitation patterns can lead to increased pest and disease pressures, impacting production.

    Impact: The effects of climate change can lead to reduced supply and increased costs for crops, affecting pricing and availability. Farmers may need to invest in adaptive strategies and technologies to mitigate these risks, impacting long-term sustainability.

    Trend Analysis: The trend of climate change impacts is increasing, with a high level of certainty regarding its effects on agriculture. This trend is driven by scientific consensus and observable changes in weather patterns, necessitating proactive measures from industry stakeholders.

    Trend: Increasing
    Relevance: High
  • Sustainable Farming Practices

    Description: There is a growing emphasis on sustainable farming practices, driven by consumer demand for environmentally friendly products. This includes practices such as organic farming and integrated pest management.

    Impact: Adopting sustainable farming practices can enhance product appeal and align with consumer values, potentially leading to increased sales. However, transitioning to these practices may require significant investment and changes in operational procedures.

    Trend Analysis: The trend towards sustainable farming has been steadily increasing, with a high level of certainty regarding its future trajectory. This shift is supported by consumer preferences and regulatory pressures for more sustainable food production methods.

    Trend: Increasing
    Relevance: High

Value Chain Analysis for NAICS 111998-07

An in-depth look at the General Farms-Primarily Crop industry's value chain, highlighting its role, key activities, and efficiency strategies, along with its unique value drivers and competitive strengths.

Value Chain Position

Category: Raw Material Provider
Value Stage: Initial
Description: This industry serves as a raw material provider within the agricultural sector, focusing on the cultivation of a variety of crops for commercial purposes. Operations involve planting, nurturing, and harvesting crops, ensuring high-quality produce for downstream industries.

Upstream Industries

  • Soil Preparation, Planting, and Cultivating - NAICS 115112
    Importance: Critical
    Description: Farms rely on soil preparation and cultivation services to create optimal planting conditions. These services provide essential inputs such as land preparation, soil amendments, and planting techniques that directly impact crop yield and quality.
  • Pesticide and Other Agricultural Chemical Manufacturing- NAICS 325320
    Importance: Important
    Description: Crops require pesticides and fertilizers to protect against pests and enhance growth. The quality and effectiveness of these chemicals are vital for maintaining healthy crops and maximizing yields, making this relationship important.
  • Farm Labor Contractors and Crew Leaders - NAICS 115115
    Importance: Important
    Description: Labor contractors supply skilled labor for planting, maintaining, and harvesting crops. Their expertise is crucial for managing labor-intensive processes, ensuring that crops are tended to efficiently and effectively.

Downstream Industries

  • Fruit and Vegetable Canning - NAICS 311421
    Importance: Critical
    Description: Canning companies process crops into various products, such as canned vegetables and ready-to-eat meals. The quality of the crops directly influences the final product's taste, texture, and shelf life, making this relationship essential.
  • Direct to Consumer
    Importance: Important
    Description: Crops are also sold directly to consumers through farmers' markets and local stores. This relationship allows farms to establish a direct connection with their customers, ensuring that they meet quality expectations and preferences.
  • Institutional Market
    Importance: Important
    Description: Institutions such as schools and hospitals purchase crops for meal preparation. The quality and nutritional value of the crops are critical for meeting dietary standards and customer satisfaction.

Primary Activities

Inbound Logistics: Receiving processes involve the careful selection of seeds and soil amendments, with storage practices maintaining optimal conditions for seeds before planting. Quality control measures ensure that only healthy seeds are used, while challenges such as pest infestations are addressed through integrated pest management solutions.

Operations: Core processes include land preparation, planting, irrigation, pest management, and harvesting. Quality management practices involve regular monitoring of crop health and implementing best agricultural practices to ensure high yields. Industry-standard procedures include crop rotation and soil testing to maintain soil health and fertility.

Outbound Logistics: Distribution methods include transporting harvested crops to processing facilities or markets using refrigerated trucks to preserve freshness. Common practices involve scheduling deliveries to ensure timely arrival and maintaining quality during transport through temperature control measures.

Marketing & Sales: Marketing approaches often include participation in local farmers' markets, online sales platforms, and partnerships with grocery stores. Customer relationship practices focus on building trust through quality assurance and transparency about farming practices. Sales processes typically involve direct engagement with customers to understand their needs and preferences.

Support Activities

Infrastructure: Management systems in the industry include farm management software that helps track crop performance, labor, and financials. Organizational structures often consist of family-run farms or cooperatives that facilitate shared resources and knowledge. Planning systems are crucial for scheduling planting and harvesting activities effectively.

Human Resource Management: Workforce requirements include skilled labor for planting and harvesting, with practices focusing on training in sustainable farming techniques. Development approaches may involve workshops and training programs to enhance workers' skills in modern agricultural practices and technology.

Technology Development: Key technologies include precision agriculture tools such as GPS-guided equipment and soil moisture sensors. Innovation practices focus on adopting new farming techniques and crop varieties that enhance yield and resilience. Industry-standard systems often involve data analytics for monitoring crop health and optimizing resource use.

Procurement: Sourcing strategies involve establishing relationships with local suppliers for seeds, fertilizers, and equipment. Supplier relationship management is crucial for ensuring timely delivery of quality inputs, while purchasing practices often emphasize sustainability and cost-effectiveness.

Value Chain Efficiency

Process Efficiency: Operational effectiveness is measured through yield per acre and cost management. Common efficiency measures include tracking labor costs and input usage to optimize profitability. Industry benchmarks are established based on average yields and production costs in the region.

Integration Efficiency: Coordination methods involve regular communication between growers, suppliers, and customers to ensure alignment on production schedules and quality expectations. Communication systems often include digital platforms for real-time updates on crop status and market demand.

Resource Utilization: Resource management practices focus on optimizing water usage through irrigation technology and minimizing waste during harvesting. Optimization approaches may involve crop rotation and cover cropping to enhance soil health and productivity, adhering to industry standards for sustainable farming.

Value Chain Summary

Key Value Drivers: Primary sources of value creation include high-quality seeds, effective pest management, and strong relationships with downstream processors. Critical success factors involve maintaining crop health and adapting to market demands for quality and sustainability.

Competitive Position: Sources of competitive advantage include the ability to produce high-quality crops consistently and establish direct relationships with consumers. Industry positioning is influenced by regional growing conditions and access to processing facilities, impacting market dynamics.

Challenges & Opportunities: Current industry challenges include fluctuating market prices, climate change impacts, and labor shortages. Future trends may involve increased demand for organic and locally sourced products, presenting opportunities for growers to diversify their offerings and enhance profitability.

SWOT Analysis for NAICS 111998-07 - General Farms-Primarily Crop

A focused SWOT analysis that examines the strengths, weaknesses, opportunities, and threats facing the General Farms-Primarily Crop industry within the US market. This section provides insights into current conditions, strategic interactions, and future growth potential.

Strengths

Industry Infrastructure and Resources: The industry benefits from a robust infrastructure that includes extensive farmland, irrigation systems, and storage facilities. This strong infrastructure supports efficient crop production and distribution, enabling farmers to meet market demands effectively and adapt to seasonal variations.

Technological Capabilities: Advancements in agricultural technology, such as precision farming and automated irrigation systems, provide significant advantages. The industry is characterized by a moderate level of innovation, with many farms adopting new technologies that enhance productivity and sustainability, ensuring competitiveness in the market.

Market Position: The industry holds a strong position within the agricultural sector, contributing significantly to the overall economy. Its competitive strength is bolstered by a diverse range of crops produced, although it faces ongoing pressure from international competition and changing consumer preferences.

Financial Health: Financial performance across the industry is generally strong, with many farms reporting stable revenue growth and healthy profit margins. The financial health is supported by consistent demand for crops, although fluctuations in commodity prices can impact profitability.

Supply Chain Advantages: The industry enjoys well-established supply chain networks that facilitate efficient procurement of seeds, fertilizers, and other inputs. Strong relationships with distributors and retailers enhance operational efficiency, allowing for timely delivery of products to market and reducing costs.

Workforce Expertise: The labor force in this industry is skilled and knowledgeable, with many workers having specialized training in agronomy and crop management. This expertise contributes to high product standards and operational efficiency, although there is a need for ongoing training to keep pace with technological advancements.

Weaknesses

Structural Inefficiencies: Some farms face structural inefficiencies due to outdated equipment or inadequate facility layouts, leading to increased operational costs. These inefficiencies can hinder competitiveness, particularly when compared to more modernized operations.

Cost Structures: The industry grapples with rising costs associated with labor, inputs, and compliance with agricultural regulations. These cost pressures can squeeze profit margins, necessitating careful management of pricing strategies and operational efficiencies.

Technology Gaps: While some farms are technologically advanced, others lag in adopting new agricultural technologies. This gap can result in lower productivity and higher operational costs, impacting overall competitiveness in the market.

Resource Limitations: The industry is vulnerable to fluctuations in the availability of water and arable land, particularly due to climate change and environmental challenges. These resource limitations can disrupt production schedules and impact crop yields.

Regulatory Compliance Issues: Navigating the complex landscape of agricultural regulations poses challenges for many farms. Compliance costs can be significant, and failure to meet regulatory standards can lead to penalties and reputational damage.

Market Access Barriers: Entering new markets can be challenging due to established competition and regulatory hurdles. Farms may face difficulties in gaining distribution agreements or meeting local regulatory requirements, limiting growth opportunities.

Opportunities

Market Growth Potential: There is significant potential for market growth driven by increasing consumer demand for locally sourced and organic produce. The trend towards sustainable farming practices presents opportunities for farms to expand their offerings and capture new market segments.

Emerging Technologies: Advancements in biotechnology and sustainable farming practices offer opportunities for enhancing crop yields and reducing environmental impact. These technologies can lead to increased efficiency and improved product quality.

Economic Trends: Favorable economic conditions, including rising disposable incomes and health-conscious consumer behavior, support growth in the crop farming sector. As consumers prioritize fresh and organic produce, demand for these products is expected to rise.

Regulatory Changes: Potential regulatory changes aimed at promoting sustainable agriculture and reducing environmental impact could benefit the industry. Farms that adapt to these changes by implementing eco-friendly practices may gain a competitive edge.

Consumer Behavior Shifts: Shifts in consumer preferences towards organic and locally sourced products create opportunities for growth. Farms that align their product offerings with these trends can attract a broader customer base and enhance brand loyalty.

Threats

Competitive Pressures: Intense competition from both domestic and international producers poses a significant threat to market share. Farms must continuously innovate and differentiate their products to maintain a competitive edge in a crowded marketplace.

Economic Uncertainties: Economic fluctuations, including inflation and changes in consumer spending habits, can impact demand for agricultural products. Farms must remain agile to adapt to these uncertainties and mitigate potential impacts on sales.

Regulatory Challenges: The potential for stricter regulations regarding environmental practices and food safety can pose challenges for the industry. Farms must invest in compliance measures to avoid penalties and ensure product safety.

Technological Disruption: Emerging technologies in alternative food sources and synthetic agriculture could disrupt the market for traditional crops. Farms need to monitor these trends closely and innovate to stay relevant.

Environmental Concerns: Increasing scrutiny on environmental sustainability practices poses challenges for the industry. Farms must adopt sustainable practices to meet consumer expectations and regulatory requirements.

SWOT Summary

Strategic Position: The industry currently enjoys a strong market position, bolstered by robust consumer demand for crops. However, challenges such as rising costs and competitive pressures necessitate strategic innovation and adaptation to maintain growth. The future trajectory appears promising, with opportunities for expansion into new markets and product lines, provided that farms can navigate the complexities of regulatory compliance and resource management.

Key Interactions

  • The strong market position interacts with emerging technologies, as farms that leverage new agricultural techniques can enhance productivity and competitiveness. This interaction is critical for maintaining market share and driving growth.
  • Financial health and cost structures are interconnected, as improved financial performance can enable investments in technology that reduce operational costs. This relationship is vital for long-term sustainability.
  • Consumer behavior shifts towards organic products create opportunities for market growth, influencing farms to innovate and diversify their offerings. This interaction is high in strategic importance as it drives industry evolution.
  • Regulatory compliance issues can impact financial health, as non-compliance can lead to penalties that affect profitability. Farms must prioritize compliance to safeguard their financial stability.
  • Competitive pressures and market access barriers are interconnected, as strong competition can make it more challenging for new entrants to gain market share. This interaction highlights the need for strategic positioning and differentiation.
  • Supply chain advantages can mitigate resource limitations, as strong relationships with suppliers can ensure a steady flow of inputs. This relationship is critical for maintaining operational efficiency.
  • Technological gaps can hinder market position, as farms that fail to innovate may lose competitive ground. Addressing these gaps is essential for sustaining industry relevance.

Growth Potential: The growth prospects for the industry are robust, driven by increasing consumer demand for organic and sustainably produced crops. Key growth drivers include the rising popularity of local produce, advancements in agricultural technologies, and favorable economic conditions. Market expansion opportunities exist in both domestic and international markets, particularly as consumers seek out healthy food options. However, challenges such as resource limitations and regulatory compliance must be addressed to fully realize this potential. The timeline for growth realization is projected over the next five to ten years, contingent on successful adaptation to market trends and consumer preferences.

Risk Assessment: The overall risk level for the industry is moderate, with key risk factors including economic uncertainties, competitive pressures, and supply chain vulnerabilities. Industry players must be vigilant in monitoring external threats, such as changes in consumer behavior and regulatory landscapes. Effective risk management strategies, including diversification of suppliers and investment in technology, can mitigate potential impacts. Long-term risk management approaches should focus on sustainability and adaptability to changing market conditions. The timeline for risk evolution is ongoing, necessitating proactive measures to safeguard against emerging threats.

Strategic Recommendations

  • Prioritize investment in advanced agricultural technologies to enhance efficiency and crop quality. This recommendation is critical due to the potential for significant cost savings and improved market competitiveness. Implementation complexity is moderate, requiring capital investment and training. A timeline of 1-2 years is suggested for initial investments, with ongoing evaluations for further advancements.
  • Develop a comprehensive sustainability strategy to address environmental concerns and meet consumer expectations. This initiative is of high priority as it can enhance brand reputation and compliance with regulations. Implementation complexity is high, necessitating collaboration across the supply chain. A timeline of 2-3 years is recommended for full integration.
  • Expand crop varieties to include organic and specialty crops in response to shifting consumer preferences. This recommendation is important for capturing new market segments and driving growth. Implementation complexity is moderate, involving market research and product development. A timeline of 1-2 years is suggested for initial product launches.
  • Enhance regulatory compliance measures to mitigate risks associated with non-compliance. This recommendation is crucial for maintaining financial health and avoiding penalties. Implementation complexity is manageable, requiring staff training and process adjustments. A timeline of 6-12 months is recommended for initial compliance audits.
  • Strengthen supply chain relationships to ensure stability in raw material availability. This recommendation is vital for mitigating risks related to resource limitations. Implementation complexity is low, focusing on communication and collaboration with suppliers. A timeline of 1 year is suggested for establishing stronger partnerships.

Geographic and Site Features Analysis for NAICS 111998-07

An exploration of how geographic and site-specific factors impact the operations of the General Farms-Primarily Crop industry in the US, focusing on location, topography, climate, vegetation, zoning, infrastructure, and cultural context.

Location: Operations thrive in regions with fertile soil, such as the Midwest and California's Central Valley, where climate and geography support diverse crop production. Proximity to urban markets enhances distribution efficiency, while access to irrigation systems is crucial for maintaining crop yields in drier areas. Regions with a strong agricultural infrastructure, including processing facilities and transportation networks, further bolster operational success.

Topography: Flat and gently rolling terrains are ideal for large-scale crop farming, allowing for efficient planting, harvesting, and machinery movement. Areas with significant elevation changes may pose challenges for mechanized farming operations, necessitating specialized equipment and techniques. The topography also influences water drainage and soil erosion management, which are critical for sustainable farming practices.

Climate: The industry is significantly affected by climate, with operations requiring specific temperature and precipitation conditions for optimal crop growth. Regions with distinct growing seasons, such as the Midwest, benefit from seasonal crop rotations, while areas with milder climates can support year-round production. Farmers must adapt to climate variability, implementing practices such as crop diversification and irrigation to mitigate risks associated with extreme weather events.

Vegetation: Local ecosystems play a vital role in crop farming, influencing pest management and pollination services. Farmers must comply with environmental regulations regarding vegetation management, particularly in maintaining buffer zones around water bodies. Effective vegetation management practices are essential for preventing invasive species and promoting biodiversity, which can enhance crop resilience and yield.

Zoning and Land Use: Zoning regulations typically favor agricultural land use, but specific requirements may vary by region, affecting crop farming operations. Permits for land use changes, such as converting land for crop production, are often required, and local governments may impose restrictions to protect natural resources. Understanding these regulations is crucial for farmers to ensure compliance and optimize land use for crop production.

Infrastructure: Reliable infrastructure is essential for crop farming, including access to transportation networks for distributing products to markets. Adequate irrigation systems are critical in regions with variable rainfall, while storage facilities for harvested crops must be strategically located to minimize spoilage. Communication infrastructure also supports farm management practices, enabling farmers to utilize technology for monitoring crop health and market conditions.

Cultural and Historical: The historical presence of farming in certain regions fosters community support for agricultural operations, with local traditions and practices influencing modern farming techniques. Community acceptance can vary, particularly in areas where urban development encroaches on agricultural land, leading to potential conflicts over land use. Engaging with local communities through outreach and education can enhance the industry's social license to operate.

In-Depth Marketing Analysis

A detailed overview of the General Farms-Primarily Crop industry’s market dynamics, competitive landscape, and operational conditions, highlighting the unique factors influencing its day-to-day activities.

Market Overview

Market Size: Large

Description: This industry encompasses establishments primarily engaged in the large-scale cultivation of crops such as fruits, vegetables, grains, and tobacco, focusing on commercial production and distribution. Operations involve planting, growing, harvesting, and marketing these crops to wholesalers, retailers, and food processors.

Market Stage: Mature. The industry is in a mature stage, characterized by established farming practices, advanced agricultural technologies, and stable demand for staple crops. Operators are increasingly adopting sustainable practices to enhance productivity and meet consumer preferences.

Geographic Distribution: Regional. Farms are typically located in regions with favorable climates and soil conditions for specific crops. For example, California is known for its fruit and vegetable production, while the Midwest is a major area for grain farming.

Characteristics

  • Diverse Crop Production: Operations typically involve a variety of crops, allowing farms to mitigate risks associated with market fluctuations and climate variability. This diversity can include seasonal vegetables, perennial fruits, and staple grains.
  • Seasonal Labor Utilization: Farming activities are highly seasonal, requiring significant labor during planting and harvest periods. Operators often rely on temporary labor forces to manage peak workloads, which can fluctuate based on crop type and yield.
  • Irrigation and Water Management: Effective water management practices are critical, especially in regions prone to drought. Many farms invest in advanced irrigation systems to optimize water usage and ensure crop health throughout the growing season.
  • Sustainable Farming Practices: An increasing number of farms are adopting sustainable practices, such as crop rotation, organic farming, and integrated pest management, to enhance soil health and reduce environmental impact.

Market Structure

Market Concentration: Fragmented. The industry is characterized by a large number of small to medium-sized farms, with few large operators dominating specific crop segments. This fragmentation allows for diverse farming practices and crop varieties.

Segments

  • Fruit and Vegetable Farms: These farms focus on the cultivation of fresh produce, often utilizing direct-to-consumer sales channels such as farmers' markets and community-supported agriculture (CSA) programs.
  • Grain and Oilseed Farms: Operations in this segment primarily grow staple crops like corn, soybeans, and wheat, often selling to large agribusinesses and food manufacturers for processing.
  • Tobacco Farms: Specialized farms that cultivate tobacco plants, facing unique regulatory challenges and market dynamics compared to other crop types.

Distribution Channels

  • Wholesale Distributors: Many farms sell their products through wholesale distributors, who then supply grocery stores, restaurants, and food processors, allowing for broader market reach.
  • Direct-to-Consumer Sales: Some farms engage in direct sales through farmers' markets, roadside stands, and online platforms, fostering closer relationships with consumers and potentially higher profit margins.

Success Factors

  • Crop Yield Optimization: Successful farms focus on maximizing crop yields through effective soil management, pest control, and timely planting and harvesting practices, which are essential for profitability.
  • Market Adaptability: The ability to adapt to changing consumer preferences and market demands, such as organic or locally sourced products, is crucial for maintaining competitiveness.
  • Efficient Supply Chain Management: Effective logistics and distribution strategies are vital for ensuring that fresh produce reaches markets quickly, minimizing spoilage and maximizing freshness.

Demand Analysis

  • Buyer Behavior

    Types: Primary buyers include wholesalers, grocery chains, food processors, and direct consumers. Each segment has distinct purchasing patterns and volume requirements, influencing farm production strategies.

    Preferences: Buyers increasingly prefer locally sourced, organic, and sustainably produced crops, leading farms to adapt their practices to meet these preferences.
  • Seasonality

    Level: High
    The industry experiences significant seasonal variations, with planting and harvesting periods dictating operational intensity. Demand peaks during harvest seasons, requiring farms to scale operations accordingly.

Demand Drivers

  • Consumer Health Trends: Growing consumer interest in healthy eating and fresh produce drives demand for fruits and vegetables, prompting farms to adjust their crop selections accordingly.
  • Food Processing Demand: Increased demand from food processors for raw ingredients, particularly grains and vegetables, influences planting decisions and crop rotations among farmers.
  • Export Opportunities: International demand for U.S. agricultural products, particularly grains and specialty crops, can significantly impact domestic production strategies.

Competitive Landscape

  • Competition

    Level: Moderate
    Competition varies by crop type, with some segments experiencing high competition due to the number of producers, while others may have fewer operators, allowing for more stable pricing.

Entry Barriers

  • Capital Investment: Starting a farm requires substantial capital for land acquisition, equipment, and initial operating costs, which can deter new entrants without adequate resources.
  • Regulatory Compliance: Navigating agricultural regulations, including environmental and food safety standards, poses challenges for new operators, requiring knowledge and resources to ensure compliance.
  • Market Access: Establishing relationships with distributors and retailers can be challenging for new entrants, as existing farms often have established contracts and customer bases.

Business Models

  • Family-Owned Farms: Many operations are family-owned and operated, focusing on traditional farming practices and local markets, often emphasizing sustainability and community engagement.
  • Corporate Farms: Larger operations may adopt corporate structures, utilizing advanced technologies and economies of scale to maximize efficiency and profitability.

Operating Environment

  • Regulatory

    Level: Moderate
    Farms must comply with various federal and state regulations regarding food safety, environmental protection, and labor practices, which can impact operational decisions.
  • Technology

    Level: Moderate
    Adoption of technology varies, with some farms utilizing precision agriculture tools for crop monitoring and management, while others may rely on traditional methods.
  • Capital

    Level: High
    Capital requirements for land, equipment, and operational expenses can be significant, necessitating access to financing and investment for successful operations.

NAICS Code 111998-07 - General Farms-Primarily Crop

We now have complete information to process your request

Your dedicated data specialist is researching your target and will provide an industry report for your review shortly

What's Next?

1
Industry report based on your target will be sent to you by email (You're here)
2
Use this to review and refine your target
3
Free sample list will be provided to test drive the data
4
When ready for purchase, your complete list will be ready in minutes
Your data specialist

Your data specialist will assist you every step of the way

What Our Clients Say

I was able to supply NAICS/SIC codes to SICCODE.com, who provided a numerical total of their lists for each code. They provided also a sample list for me to judge the content and accuracy. Their Business Data Specialist sent then refined lists that allowed me to target my audience. They are professional and able to understand their products in great detail. I recommend them to anyone who wants to focus a targeted sales/marketing campaign.

SICCODE.com client

SICCODE.com client