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
The pandemic and war in Ukraine prompted major supply disruptions resulting in a sharp rise in volatility of commodity prices including wheat and oilseeds.
Trade Restrictions Limit Markets
Trade restrictions on exports limit market access and make exports more expensive for foreign customers.
Industry size & Structure
Industry Forecast
Farm Raw Product Wholesalers Industry Growth
Recent Developments
Mar 23, 2024 - Farm Income to Fall in 2024
- Net farm income – a broad measure of farm profitability – is projected to decline this year compared to 2023, according to the latest USDA Farm Sector Income Forecast. In inflation-adjusted 2024 dollars, net farm income is forecast to fall by $43.1 billion (27.1%) from 2023 to 2024, and net cash farm income to decrease by $42.2 billion (25.8%) compared with the previous year, If realized, both measures in 2024 would fall below their 2003-2022 averages (in inflation-adjusted dollars). Overall, farm cash receipts are forecast to decrease by $21.2 billion (4.2%) from 2023 to $485.5 billion in 2024 in nominal dollars. Direct government farm payments are forecast at $10.2 billion in 2024, a $1.9 billion drop from 2023. Total production expenses are forecast to increase by $16.7 billion from 2023 to $455.1 billion in 2024.
- The 2024 Economic Outlook for US Agriculture predicts a mixed bag for agricultural commodities this year with major crops including corn, soybeans, wheat, and cotton facing challenging outlooks while prices for vegetables and calves and cattle are expected to rise, according to ag financier AgAmerica. Lower demand for corn in the US combined with strong domestic production will drive prices down. Soybean plantings and prices are expected to fall this year while wheat prices are expected to drop amid increased global supplies. Cotton prices also are expected to fall on rising supply. Rising consumer demand for vegetables, especially frozen, is driving increased production and prices are predicted to grow by 5%, per AgAmerica. High beef prices in 2023 due to dwindling herds are expected to carry over in 2024, even as production increases. Overall, lower prices for agricultural commodities are contributing to a decline in net farm income in 2024.
- Ongoing uncertainty surrounding the federal budget is making it difficult for the USDA and producers to plan for the future, Agriculture Secretary Tom Vilsack told attendees at the American Farm Bureau Federation (AFBF) annual convention in January. Vilsack said that while the latest Continuing Resolution (CR) purportedly keeps funding at certain levels, potential cuts in any final budget deal could create greater shortfalls in the middle of the year. “As long as there’s uncertainty, it’s very difficult for farmers potentially to make long-term decisions or long-term planning.” The previous CR passed in November included an extension of the 2018 farm bill at current levels through Sept. 30, 2024. Calling for a new Farm Bill, AFBF President Zippy Duvall said “The current farm bill was written before the pandemic, before inflation spiked, and before global unrest sent shock waves through the food system. We need programs that reflect today’s realities.”
- Food price inflation is expected to ease in 2024 as agricultural commodity costs ease, Bloomberg reported in November. Prices of sugar, coffee, corn, and soybeans are projected to fall amid better supply prospects, according to a new report from Rabobank. Demand is also expected to remain subdued with US consumers still squeezed by the rising cost of living. Global food commodity costs are finally easing after years of being roiled by the COVID-19 pandemic, extreme weather events, and Russia’s invasion of Ukraine. A United Nations gauge of global costs has slid about 25% since hitting a record in March 2022, helping to lower broader inflation, according to Bloomberg. However, the outlook remains uncertain for some commodities such as wheat, which may face potential restrictions on Russian exports, according to Rabobank.
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