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Corn Farming in Canada Industry Market Research Report Now Available From IBISWorld
Date:7/11/2014

New York, NY (PRWEB) July 11, 2014

The Corn Farming industry experienced solid growth during the five years to 2014 on the heels of fresh biofuel demand. The Federal Renewable Fuel Regulations of 2010 prompted farmers to dedicate a larger share of their farmland to cultivating high-value corn used in ethanol production. More specifically, the regulations required the mixing of 5.0% renewable content in gasoline across Canada. Similarly, rapidly expanding biofuel production in the United States created a key export market for Canadian corn, further supporting demand. “In addition, the growing share of genetically modified corn plantings enhance yields, thereby bolstering production,” according to IBISWorld Industry Analyst Antal Neville. Consequently, industry revenue has expanded at an average annual rate of 9.2% to $2.3 billion during the five years to 2014, even despite a 1.0% drop in 2014 revenue.

A rise in global demand significantly facilitated industry expansion. In 2010, exports skyrocketed 130.9% due to a poor coarse grain harvest in Europe. Consequently, European markets developed a strong appetite for Canadian corn, driving up revenue 14.7% during the year. However, the most significant production hike occurred in 2012, when domestic corn production grew about 13.8%. During the year, revenue jumped 26.2% as a result of demand from the drought-stricken United States and the rising price of corn worldwide. “Facilitated by the North American Free Trade Agreement and their shared border, the United States is Canada's largest trading partner for corn,” says Neville. Therefore, the US appetite for Canadian corn, which is used primarily for biofuel production and livestock f
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