Agriculture
World Cypher Capital Agriculture Investment
Agriculture and farming play a critical role in the United States, not only as the backbone of food production but also as a major contributor to the national economy. As of 2020, about 71% of the country’s total land area was dedicated to agricultural use. In the same year, the sector added over £9 billion in gross value to the U.S. economy.
The importance of farming extends beyond food production—it is a key pillar of economic activity. In 2015, agricultural operations generated approximately £24 billion in revenue and contributed around £8.5 billion in Gross Value Added (GVA). Direct employment in agriculture accounted for about 475,000 jobs, with an additional 30,000 jobs supported through related industries such as manufacturing, logistics, construction, and various professional services.
Moreover, agriculture supplies roughly 61% of the raw materials used in the broader U.S. agri-food industry, which is valued at around £108 billion in GVA and sustains over 3.7 million jobs across the nation. This sector is also a strong contributor to international trade, earning roughly £18 billion annually through exports.
Beyond its economic impact, farming also plays a major role in environmental stewardship. With over 70% of the U.S. landscape managed by farmers, agricultural lands support a variety of wildlife habitats and key natural features. The estimated annual value of these environmental services is around £672 million. Additionally, farmland helps mitigate climate change by serving as a carbon sink, a function valued at approximately £514 million per year.
Given the consistent year-round demand for agricultural products and raw materials, Mayflam Group has strategically chosen to invest in the agriculture sector. We are confident in the profitability and long-term sustainability of our decision. Our focus lies in four major agricultural areas, all of which represent some of the highest-demand products and inputs in the market today.
Cattle Meat
Beef Production Methods in the United States
Beef production in the U.S. involves a variety of systems tailored to suit both market demand and animal development stages. Below are some of the key approaches used in raising beef cattle:
1. Suckled Calf Production
In this system, calves remain with their mothers and are naturally reared on milk until they are weaned, usually between six and eight months of age. After weaning, these young animals are typically sold to other farms where they are further fattened and prepared for slaughter.
2. Finishing Systems
This method involves feeding cattle specific diets designed to promote rapid growth and weight gain in preparation for slaughter. The goal is to achieve optimal size and meat quality to meet market requirements.
3. Store Cattle Production
Here, young animals are raised more slowly, usually on lower-cost, home-produced feedstuffs. These cattle are often kept until they are older and then sold to finishing units to complete their growth cycle.
4. End-of-Rearing Stage
Various types of cattle—including young bulls, steers (castrated males), and heifers (young females)—can be used for beef. The age and weight at which these animals are slaughtered can vary widely, depending on what specific traits buyers are seeking in the final meat product.
5. Veal and Dairy-Calf Beef Production
Traditionally, surplus calves from the dairy industry were a key source of animals for veal production. Over time, however, many of these calves were considered unsuitable for quality beef and were either euthanized on-farm or exported to Europe, often into systems not compliant with U.S. welfare regulations. Since 2006, animal welfare groups like the RSPCA have promoted better use of dairy calves for domestic beef markets, encouraging more ethical and sustainable practices.
Beef Cattle Numbers and Breeds
As of 2019, the United States maintained approximately 1.56 million beef breeding cows, according to data from the Agriculture and Horticulture Development Board.
Common Breeds in U.S. Beef Farming:
British Breeds: These include early-maturing types such as Aberdeen Angus and Hereford, both well-regarded for their meat quality and suitability for pasture-based systems.
Continental Breeds: Later-maturing varieties like Charolais and Limousin are also widely used. These breeds are favored for their higher muscle mass and efficiency in feed conversion, making them ideal for intensive beef production systems.
Maize Production
Maize Production in the United States and Around the World
Maize has become one of the fastest-growing crops in the United States, with a remarkable expansion in its cultivation over recent decades. In England alone, the area dedicated to maize increased from just 8,000 hectares in 1973 to around 183,000 hectares by 2014. While the primary use of maize has traditionally been as silage for feeding livestock—particularly dairy cows—its role has broadened in recent years.
An increasing share of maize is now cultivated for use in anaerobic digesters (AD), which convert organic materials into biogas, a renewable energy source. These AD systems are often supported by government subsidies. Maize is especially valued in this context due to its high productivity, yielding large volumes of both biomass and biogas per hectare, making it a preferred feedstock for bioenergy generation.
However, the widespread use of maize silage has raised concerns. Studies have shown that a maize-heavy diet can reduce the nutritional value of both milk and meat. There are also indications that consuming maize may increase the vulnerability of livestock—and even badgers—to bovine tuberculosis (TB), posing a risk to animal health.
The National Farmers Union (NFU) has proposed a significant expansion of maize cultivation, aiming to add approximately 125,000 hectares of maize in England by 2020. Critics argue that this push for biofuel production could negatively impact food security. The land earmarked for maize could instead be used to grow vital food crops—enough to produce over a million tonnes of wheat or more than 5.5 million tonnes of potatoes.
Maize on the Global Stage
Maize, which originated in Central America, is now one of the world’s leading cereal crops. It plays a crucial role in global agriculture, providing food for humans and animals alike. By 2013, global maize cultivation reached approximately 184 million hectares. With the global rise in demand for meat and starch-based foods, maize production hit a record high of 992 million tonnes. This trend shows no signs of slowing down, with projections indicating an annual growth rate of about 3%.
Wheat Cultivation
U.S. Grain Outlook for 2021–22: Wheat Bounces Back After Historic Low
Following one of the lowest wheat harvests in 40 years, the United States is set to make a significant recovery in wheat production for the 2021–22 marketing year. According to the USDA’s Global Agricultural Information Network report released on April 21, wheat output is expected to climb to 14.75 million tonnes—an increase of 5 million tonnes compared to the previous year.
One of the key drivers of this projected rebound is an expansion in wheat cultivation, with nearly 400,000 additional hectares expected to be sown. Favorable planting conditions during the fall played a role in this shift, prompting many farmers to return to winter wheat after a temporary move toward spring crops like barley in 2020–21.
However, this pivot back to wheat is expected to cause a dip in barley production, which is forecast to decline to 7.2 million tonnes from 8.1 million tonnes the year prior. Overall grain output in the U.S.—including wheat, barley, oats, and mixed grains—is estimated at 23.1 million tonnes. This figure represents an increase of 4 million tonnes over the previous year, although it still falls short of the 2019–20 total by approximately 1.7 million tonnes.
The USDA report notes that the subpar wheat yields in the prior year prompted greater reliance on barley for livestock feed and a spike in corn imports to support biofuel production. Yet for 2021–22, wheat used for feed and residual purposes is expected to reach 7.55 million tonnes, rising from 6 million tonnes in the previous cycle. In contrast, feed use of barley is projected to fall to 4 million tonnes, down from 5.3 million tonnes.
A notable trend in the Food, Seed, and Industrial (FSI) segment is a forecasted increase in grain usage within the bioethanol industry. This follows a government policy decision to begin phasing in E10 fuel—which contains 10% ethanol—starting in September. As part of this shift, a previously shuttered bioethanol facility is slated to reopen. Additionally, another U.S. plant is set to ramp up production and revert to using domestically produced feed-grade wheat, reversing a temporary reliance on imported corn due to prior price fluctuations.