In this article, we will be analyzing the agriculture sector in the US and covering the 17 most profitable crops to grow in the country. If you wish to skip our detailed analysis, you can move directly to the 5 Most Profitable Crops to Grow in the US.
Outlook of the US Agriculture Sector
As reported by the US Department of Agriculture, agricultural production occurs in each of the 50 states. However, California is the largest producer of agricultural products in the nation. Corn, wheat, soybeans, and cotton are significant crops in the national economy. The combined acreage planted to these crops has increased to 242 million acres in 2022. The fruit and tree nut value of production has also experienced a steady rise. Prominent fruits in this regard include apples, grapes, strawberries, and oranges while tomatoes and potatoes dominate among the vegetables.
In 2023, a favorable spring season resulted in increased production of apples and sweet cherries in the Pacific Northwest. While winter and spring rainfall in California helped drought conditions, inadequate chill hours led to a decline in the production of peaches, tart cherries, and cranberries in several states. The US citrus production has also decreased due to a reduction in orange production in Florida. The lower citrus acreage and yields in Florida can be attributed to the effects of Huanglongbing, a bacterial disease that impacts citrus trees negatively. The aftereffects of Hurricane Ian also disrupted the production.
Simultaneously, soybeans recorded higher yields in Wisconsin, Tennessee, Ohio, North Dakota, and South Dakota. During September, US soybean processors processed 174.8 million bushels of soybeans, a record high for the month. However, rainfall and heavy snowstorms across the Northern Plains and Midwest regions slowed harvest activities at the end of October.
Innovation Penetrating American Agriculture
The US agriculture sector is subject to issues of rising production costs, climate change, and labor shortages. However, the transformation of farming through digitalization and automation of agricultural practices tends to be an effective solution. Yield maps, soil maps, and variable rate technologies (VRT) have helped improve corn and soybean acreage in the country. Automated guidance has also been increasingly applied on acreage planted to major crops including corn, cotton, rice, sorghum, soybeans, and winter wheat.
As reported by the US Department of Agriculture, American farmers, ranchers, and private forest landowners are supported through financial assistance and one-on-one technical advice. Nutrient management plays a significant role in improving agriculture by mitigating greenhouse gas emissions. The Inflation Reduction Act has dedicated an additional $19.5 billion from 2023 to 2027 which will help farmers implement expanded conservation practices to lower greenhouse gas emissions and increase storage of carbon in their soil and trees.
Leading Companies Operating in the Agriculture Sector
Companies improving agricultural conditions in the United States include AGCO Corporation (NYSE:AGCO), CF Industries Holdings Inc. (NYSE:CF), and FMC Corporation (NYSE:FMC).
AGCO Corporation (NYSE:AGCO) is an American agricultural machinery manufacturer. The company is a global leader in the design, manufacture, and distribution of agricultural machinery and precision agriculture technology. It aims to support farmers through the latest smart agriculture solutions. On November 12, AGCO Corporation (NYSE:AGCO) reported that it agreed to acquire digital assets from FarmFacts GmbH, a leader in Farm Management Information Software (FMIS). This acquisition is a strategic addition to the firm’s precision agriculture capabilities. The company has also committed to having a full line of autonomous solutions for every stage of the crop cycle by 2030.
CF Industries Holdings Inc. (NYSE:CF) is an American manufacturer and distributor of agricultural fertilizers, including ammonia, urea, and ammonium nitrate products. On December 5, CF Industries Holdings Inc. (NYSE:CF) reported that The CF Industries Foundation will be providing a grant of $120,000 over three years to support Second Harvest Food Bank of Greater New Orleans and Acadiana’s programs to improve food access in Waggaman, Louisiana. Low-cost fresh produce, meat, and dairy food items will be made available to local residents under this grant funding.
FMC Corporation (NYSE: FMC) is a leading global agricultural sciences company headquartered in Philadelphia, Pennsylvania. The firm continues to drive efficiencies in operations, introducing climate-smart solutions to growers while ensuring the well-being of employees and people across their supply chain. On December 7, FMC Corp. (NYSE: FMC) reported that it was the only crop protection company to qualify among America’s most responsible companies. This can be attributed to the sustainability across its business.
Now that we have taken a look at the state of agriculture in America, we can move to the 17 most profitable crops to grow in the country.
17 Most Profitable Crops to Grow in the US
Our Methodology:
In order to compile a list of the 17 most profitable crops to grow in the US, we sourced data from FAO. We screened to find the gross production values for all kinds of crops grown in the United States. The gross production values represent the market value of crops at the time they were produced. The most recent data was available for 2021. The 17 most profitable crops to grow in the US are ranked in ascending order of their gross production values.
Note: We have rounded values up or down to 1 decimal place.
17 Most Profitable Crops to Grow in the US
17. Groundnuts
Gross Production Value: $1.5 Billion
Groundnuts continue to be a profitable crop to sustain in the US. In 2021, they recorded a gross production value of $1.5 billion as reported by FAO. Their production is carried out in the Southeast and Southwest of the country.
16. Oranges
Gross Production Value: $1.6 Billion
Oranges are one of the citrus fruits that contribute to the total fresh fruit volume in the United States. They qualify as profitable crops to grow in the country. Florida, California, and Texas are known for the domestic production of oranges.
15. Blueberries
Gross Production Value: $1.7 Billion
Blueberry is another profitable crop to grow in the US. The demand for fresh or frozen blueberries as well as value-added products continues to be on the rise in the country. Hence, a mature planting of blueberries can lead to a high profit.
14. Lettuce and Chicory
Gross Production Value: $2.1 Billion
The rising population, inclination towards veganism, and growing health awareness have led to a growth in the lettuce and chicory market. Salad kits and packaged salads are also boosting the growth in this market. Hence, lettuce and chicory rank as one of the profitable US crops with a high demand.
13. Green Corn
Gross Production Value: $2.3 Billion
Green corn is an important crop in the United States. In 2021, the gross production value of green corn was $2.3 billion. This makes it one of the 17 most profitable crops to grow in the country.
12. Sorghum
Gross Production Value: $2.4 Billion
Sorghum is a significant crop in the United States which is used in animal feed, ethanol production, and human food. Major sorghum-producing areas include Kansas, Texas, Colorado, Oklahoma, Nebraska, and South Dakota. The US is also a leading exporter of sorghum. Mexico, China, and Japan are among the primary export destinations.
11. Pistachios
Gross Production Value: $2.9 Billion
Pistachios are one of the most profitable crops to grow in the US. The pistachio production is on the rise as a result of increased acreage. Most of the growth is concentrated in California but plants are also being grown in Arizona. These conditions have been forecasted to lead to even higher yields.
10. Rice
Gross Production Value: $3.0 Billion
The 17 most profitable crops to grow in the US include rice as well. The majority of the rice consumed is grown on family farms which contributes to the local economy. Rice farmers in the country enjoy high profits due to a rising return per acre over time.
9. Strawberries
Gross Production Value: $3.8 Billion
Strawberries are another profitable crop to grow in the United States. California and Florida are the top two strawberry-producing states in the country. Factors driving the demand for strawberries include general health awareness, an increase in domestic supply, and imports which ensure availability throughout the year.
8. Apples
Gross Production Value: $3.9 Billion
The US is also a major global producer of apples. The demand for apples is high in the fresh market as well as related products such as apple juice, applesauce, and ciders. The state of Washington serves as a major apple-producing region in the US. The country also exports apples, particularly to Canada and Mexico.
7. Potatoes
Gross Production Value: $4.1 Billion
Potatoes serve as a potentially lucrative crop in the United States. Although the crop requires high-stakes investment, it results in high profits. Hence, potatoes rank as one of the 17 most profitable crops to grow in the US.
6. Grapes
Gross Production Value: $7.9 Billion
Grapes are grown in a vineyard which produces a high-value crop. Hence, grapes are another profitable crop to grow in the US. Wines make the most expensive use of domestic grapes. Grapes usually grow in most climate zones. California and Washington are among the grape-producing regions in the country.
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Disclosure: None. 17 Most Profitable Crops to Grow in the US is originally published on Insider Monkey.