Farm Supplies 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 4,900 farm supplies wholesalers in the US purchase animal feeds and additives, fertilizers, agricultural chemicals, pesticides, plant seeds, and bulbs in bulk and resell them to customers in smaller volumes. Primary customers include farms, other distributors, farm and garden supply retailers, nurseries and greenhouses, and landscaping businesses.
Adverse Weather
Changes in area weather conditions affect demand for agricultural products.
Farm Consolidation and Specialization
Large-scale farms – those with gross cash farm income (GCFI) of $1 million or more – represent about 5% of US farms but account for more than three-quarters (78%) of US farm production, according to USDA figures for 2022.
Industry size & Structure
A typical farm supplies wholesaler operates from 1-2 locations, employs fewer than 25 workers, and generates $29 million annually.
- The farm supplies wholesaler industry comprises about 4,900 companies that employ 120,300 workers and generate $140 billion annually.
- The industry is somewhat concentrated, with the 20 largest firms representing 50% of industry revenue.
- Large domestic companies include Southern States Cooperative (VA), Central Farm Supply (KY), Coastal Agriculture Supply (TX), and Heartland Agricultural Services (IL).
Industry Forecast
Farm Supplies Wholesalers Industry Growth
Recent Developments
Jan 23, 2025 - Seasonal Decline in Employment as Wages Rise
- Employment by farm supplies wholesalers fell 1.6% in October compared to a year ago, according to the latest US Bureau of Labor Statistics data. Employment by the industry is seasonal, typically peaking in the summer months and declining in the fall as farm activity slows. Meanwhile, average wages at farm supplies wholesalers rose 0.9% over the same period to $29.83 per hour, BLS data shows. Producer prices for miscellaneous nondurable goods merchant wholesalers, which includes distributors of farm supplies, fell 2.9% year over year in November after surging nearly 25% in the previous November-versus-November annual comparison, per the BLS.
- Falling crop prices and rising input costs are causing US farmers to cut back on spending, sending shocks throughout the US agriculture sector and prompting The Wall Street Journal to announce in a December headline “America’s Farm Recession is Here.” The downturn in the ag economy, which began in 2023 when net farm income tumbled 20% and again by about 4% in 2024, follows record setting farm income in 2022 fueled by soaring grain prices due to the pandemic and war in Ukraine, according to the USDA. Rising costs for seed, fertilizer, and equipment amid tumbling prices for corn, soybeans, and wheat due to bumper crops is weighing on farmers’ earnings, WSJ reports. US farmers are cutting back on their spring planting budgets by trading down to generic chemicals to treat their crops, Reuters reported in January.
- In October, the EPA announced the cancellation of all products containing the pesticide dimethyl tetrachloroterephthalate (DCPA or Dacthal) under the Federal Insecticide, Fungicide and Rodenticide Act. In August, the agency issued an emergency order suspending all registrations of the pesticide due to serious health risks – the first time in almost 40 years EPA took this type of emergency action. The pesticide is registered to control weeds in both agricultural and non-agricultural settings, but DCPA is primarily used on crops such as broccoli, Brussels sprouts, cabbage, and onions. The final cancellation prohibits anyone from distributing, selling or carrying out other similar activities for the remaining pesticide products containing DCPA as well as prohibiting using existing stocks of those products. In August, American Vanguard Corp., the only manufacturer of Dacthal, said it was working to remove it from distribution.
- The widening spread between input prices paid by farmers and what they receive for their outputs in the form of lower commodity prices is squeezing farm profits, according to Farm Progress. Current farm income instability due to inflationary pressures, high interest rates, and several supply chain disruptions have farmers facing higher input costs while receiving lower commodity prices. Moreover, as commodity prices have fallen the gap between the two widened in 2023 and 2024. The percentage change in crop output prices between 2023 and 2024 (-13.8%) is much larger than the percentage decrease in input prices (-1.38%) during that period, USDA data show. Without any relief in the form of improved crop prices, farmers will continue to suffer from cost/price squeezes, eroding farm profit margins and reducing their purchasing power, according to Farm Progress.
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