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
Source: Vertical IQ and Inforum

Recent Developments

May 23, 2024 - Prices Fall Amid Declining Sales
  • Producer prices for farm raw product wholesalers fell 1.3% in March compared to a year ago, according to the latest US Bureau of Labor Statistics data. Producer prices are down sharply from last fall amid declining sales. Sales by the industry plunged nearly 19% in March year over year and were down 7.8% from the previous month, US Census Bureau data show. Sales for the US farm raw product wholesalers industry are projected to grow at a 3.14% compounded annual rate from 2024 to 2028, slower than the growth of the overall economy, per a forecast prepared by the Interindustry Economic Research Fund. Meanwhile, industry employment grew 3% in March year over year and was up versus the prior two months, per the BLS.
  • 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.
  • 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, 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 down prices. 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.”
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