Farm Raw Product Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 3,335 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.
Volatile Commodity Prices
Farm commodity prices have declined from the peak levels they rose to during spring 2022 following Russia’s invasion of Ukraine.
Trade Restrictions Limit Markets
Trade restrictions on exports limit market access and make exports more expensive for foreign customers.
Industry size & Structure
The average farm raw material product wholesaler employs 18 workers and generates about $104 million in annual revenue.
- There are 3,335 farm raw material product wholesalers in the US, operating 6,130 facilities, employing about 71,700 people, and generating about $348 billion in annual revenue.
- The industry is somewhat concentrated with the 20 largest firms controlling 56% 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.
Industry Forecast
Farm Raw Product Wholesalers Industry Growth
Recent Developments
Sep 23, 2024 - Sales and Prices Tumble
- Producer prices for farm raw products wholesalers tumbled 15.1% in July compared to a year ago, according to the latest US Bureau of Labor Statistics data. The decline in industry producer prices followed a steep 21.1% year-over-year drop in sales in June. Meanwhile, employment by the industry grew 1.6% year over year in July but remains about 7% lower than eight years ago, BLS data show. Wholesale prices for farm raw products have tumbled from their highs in 2022 when Russia’s invasion of Ukraine drove up prices for grains, oilseeds, and other commodity products.
- Updated projections for 2024 farm income don’t look quite as gloomy as they did earlier this year, AgWeb’s Farm Journal reports, citing new data from the Economic Research Service (ERS). New numbers from the ERS show that net cash farm income for 2024 will fall by about $12 billion, down about 7% from 2023, and net farm income will fall by $6.5 billion or 4.4%. That’s compared to ERS projections released in February that suggested net farm income would fall 26%. The primary cause for 2024’s decline in farm income is commodity prices. Cash receipts or sales are expected to fall by $27.7 billion. When combined with the inventory adjustment for crops, the value of crop production is forecast to decrease by $25.6 billion from 2023, with the largest decline coming from corn and soybeans. Fertilizer expenses for crop farmers are expected to fall by almost 10%.
- Extreme weather events across the US are taking a toll on corn and soybeans, the nation’s two largest crops, according to the USDA’s June 17 Crop Progress report. The amount of corn currently in good or excellent condition is 72% (down from 74% the prior week), while the crop in poor or fair condition is 27% (up from 25%). Soybeans saw a similar trend, with 70% in good or excellent condition (down from 72% last week) and 29% in poor or fair condition (up from 27%). Serious flooding in South Dakota and Minnesota is impacting farms in both states, with high temperatures forecast for the peak growing season. Elsewhere, massive hail storms have damaged crops in Nebraska. Moreover, many meteorologists predict more challenges will arise as extreme heat sets in across the country. In June, the USDA released its updated Climate Adaptation Plan to promote climate resilience in agricultural production.
- The Biden administration in May announced new standards for sustainable aviation fuel (SAF), FarmProgress reports. The Treasury Department and Internal Revenue Service issued new guidelines for tax credits for SAF meant to spur production of SAF that reduce greenhouse gas emissions by at least 50% compared to petroleum-based jet fuel. Agriculture Secretary Tom Vilsack called the new guidelines for tax credits an “important steppingstone” that acknowledges the role farmers can play in lowering greenhouse gas emissions. The USDA also announced a pilot program to encourage farmers to “bundle” climate-smart agriculture practices for SAF feedstock. Corn-based ethanol producers can earn a tax credit if they incorporate multiple practices, such as no-till farming, cover crops, and enhanced efficiency fertilizer. Soybean SAF producers can also earn the tax break if they practice no-till farming and cover cropping, per FarmProgress.
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