Commodity Library

The largest U.S. crop by volume, corn is grown primarily for livestock feed, ethanol production, and export. The Corn Belt (Iowa, Illinois, Indiana, Ohio, Nebraska) produces the majority of the U.S. crop.

The second-largest U.S. crop, soybeans are crushed for soybean meal (animal feed) and soybean oil. The U.S. is the world's largest soybean producer alongside Brazil and Argentina. Demand is heavily driven by Chinese imports.

Wheat is grown across the U.S. in several classes: Hard Red Winter (Kansas, Oklahoma, Texas), Hard Red Spring (North Dakota, Montana), and Soft Red Winter (Midwest). Winter wheat is planted in fall and harvested in early summer.

Grain sorghum (milo) is drought-tolerant and suited to drier regions of the Southern Plains and Texas. Primarily used for livestock feed and ethanol. Typically priced at a discount to corn on a per-bushel basis.

Cotton is grown primarily in Texas, Georgia, Mississippi, and California. It is harvested for fiber (lint) and seed (cottonseed meal and oil). Cotton is among the most input-intensive field crops.

Rice is grown primarily in Arkansas, California, Louisiana, Mississippi, and Texas. The U.S. produces both long-grain and medium-grain varieties. Requires significant water and is typically grown under irrigation.

Canola is grown in the Northern Great Plains (North Dakota, Montana) and Canada. Crushed for canola oil (food and biodiesel) and canola meal (livestock feed). Winter canola is expanding in the Southern Plains.

Sunflowers are grown in the Northern Great Plains, especially North Dakota, South Dakota, and Minnesota. Grown for oil (confection and non-oil) and as snack food. Drought-tolerant and suited to drier climates.

Beef cattle production spans cow-calf operations, stocker/backgrounding, and feedlot finishing. The U.S. beef cow herd is at its smallest since 1961, supporting historically strong prices through at least 2026.

U.S. hog production is concentrated in Iowa, Minnesota, North Carolina, and Illinois. Modern hog operations are primarily indoor confinement systems. Pork is heavily exported to China, Mexico, and Japan.

U.S. dairy production is concentrated in California, Wisconsin, Idaho, New York, and Texas. Class III milk is used for cheese; Class IV for butter and powder. The dairy margin protection program (DMC) provides federal risk management.

Sheep and goat production includes meat (lamb, chevon), wool, and dairy (goat milk, cheese). A smaller industry than beef or hogs but growing due to ethnic market demand and direct-to-consumer sales.

Hay production — alfalfa, grass hay, mixed hay — is a major enterprise across the West and Midwest. Both a cash crop sold to other producers and a feed input for livestock operations. Drought sensitivity is high.

Industrial hemp was federally legalized in the 2018 Farm Bill. Grown for grain, fiber, and CBD/flower. The market has experienced significant price volatility since legalization, with CBD markets in particular having collapsed from 2019 highs.