Seeds and fertilizers make up 62% of the operating costs to produce corn and 51% of the operating costs to produce soybeans, according to U.S. Department of Agriculture data.

Innovations with seeds have helped drive a nearly three-fold increase in agricultural output since the 1940s. At the same time, land and labor costs have declined, according to USDA data

โ€œBiological, mechanical, chemical, and organizational innovations from both public and private sector investments in research and development have largely driven this productivity growth,โ€ according to a report from USDA.

After a series of mergers, there are now only a handful of companies that control the chemical and seed industry: Bayer, Corteva, Syngenta and Limagrain. 

The USDA report said โ€œthe largest four sellers of corn seed accounted for 85 percent of U.S. corn seed sales in 2015โ€ while soybean sales from the largest four sellers made up 76 percent. 

Note: Operating costs do not include indirect costs such as labor, opportunity cost of land, taxes and insurance. 

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