Farm Raw Product Wholesalers

The 3,400 farm raw product wholesalers in the US purchase grain, crops, and livestock from area farms, ranches, and breeders, then aggregate the products or animals and sell in larger volumes to slaughterhouses, grain mills, poultry farms, yarn and textile manufacturers (cotton, wool), food manufacturers, exporters, landscaping firms and builders (sod), biofuel producers and other manufacturers and wholesalers.

Trade Restrictions Limit Markets

Trade restrictions on exports limit market access and make exports more expensive for foreign customers.

Volatile Commodity Prices

Farm commodity prices have declined sharply from their peak levels following Russia’s invasion of Ukraine.

Jul 23, 2026 - USDA Lowers Wheat Forecast

• The USDA cut its forecast for 2026 US wheat production to 1.536 billion bushels, the smallest crop since 1970, according to the department’s July World Agricultural Supply and Demand Estimates (WASDE). For farm raw product wholesalers, a smaller wheat harvest could reduce grain merchandising, storage, and handling volumes while supporting higher wheat prices and margins on available supplies. At the same time, the USDA raised its forecasts for 2026/27 corn and soybean production and increased export projections for both crops, creating additional opportunities for grain elevators, cooperatives, and agricultural wholesalers to benefit from stronger merchandising, logistics, and export activity. Grain markets reacted modestly to the report, with wheat futures rising more than 3%, while analysts said weather and potential disruptions to Russian wheat exports remain the biggest factors likely to influence grain markets and trading activity through the remainder of the marketing year.
• The Iran war is increasing uncertainty and costs for US crop producers, influencing farmers' planting decisions for 2026, Farm Progress reports. Rising fertilizer and fuel prices, with urea up sharply and diesel about 35% higher, are raising input costs for farmers, particularly for corn, which requires more nitrogen. As a result, farmers are expected to shift acreage away from corn toward soybeans, which are less input-intensive and currently more economical. Higher costs are putting both crops under financial pressure, with projected losses, but soybeans now offer a relative advantage, reversing last year’s outlook. This could lead to reduced corn acreage and increased soybean plantings, or even some land left unplanted. Additional factors such as shipping costs, inflation, and interest rates are adding to financial strain and planning uncertainty. Overall, crop production is being reshaped by cost pressures and global instability.
• Farm raw products wholesalers have a lot riding on the merger of the Union Pacific and Norfolk Southern railroads: About 3.2 million rail cars of grains, oilseeds, and other agricultural products move by rail on an annual basis, representing more than 10% of all rail shipments, and 26% of grain has at least one rail movement, according to the National Grain and Feed Association. The $85-billion proposed merger would create the nation’s first transcontinental freight railroad, connecting over 50,000 route miles across 43 states and linking some 100 ports, according to Union Pacific. In 2023, more than 80.5 million tons of corn, 26.3 million tons of soybeans, and 25.8 million tons of wheat were shipped by rail, per the USDA’s Agricultural Marketing Service. The companies are targeting an early-2027 close for their merger, which faces intense scrutiny from the Surface Transportation Board.
• Producer prices for farm product raw material merchant wholesalers rose 6.2% in June compared to a year ago, after tumbling 19% in the previous June-to-June annual comparison, according to the latest US Bureau of Labor Statistics data. Wholesale prices for farm raw products are volatile and vulnerable to swings in prices for farm commodities including grains, crops, and livestock. Farm raw product materials sales rose 10.6% year over year in May and 5.9% versus April, according to the Census Bureau. Meanwhile, employment by the industry was relatively flat year over year in May, according to the BLS.

Industry size & Structure

The average farm raw material product wholesaler employs 22 workers and generates about $95.5 million in annual revenue.

• There are 3,400 farm raw material product wholesalers in the US, operating 6,200 facilities, employing about 73,800 people, and generating about $324.7 billion in annual revenue.
• The industry is somewhat concentrated with the 20 largest firms controlling 59% of industry revenue.
• Large grain wholesaling companies include Cargill, Scoular, Tronson Grain, and Pacificor.
• Large livestock wholesaling companies include Smith Farms, East Carolina Stockyard, and South Texas Cattle Marketing.