Farm Supplies Wholesalers

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 less than 5% of US farms but account for almost half (48%) of US farm production, according to USDA figures for 2023.

Sep 23, 2026 - Rising Production Expenses

• US farm income is expected to decline in 2026 despite stronger crop revenues and sharply higher government payments, Farm Bureau reports citing the latest USDA forecast. USDA forecasts net farm income of $158.4 billion, down 2.6% from 2025 and 5.5% after inflation. Production expenses are projected to rise 4.5% to $492.8 billion, driven by higher fuel, fertilizer, transportation, and interest costs, limiting improvements in farm margins. Crop farmers have a stronger revenue outlook, particularly soybean producers. Soybean cash receipts are forecast to rise $4.3 billion, or 10%, to $47.9 billion, primarily because of higher prices. However, fertilizer expenses are projected to rise 15.3% and fuel and oil costs 28.8%, potentially offsetting some of those revenue gains. Farm debt is also expected to reach a record $605.1 billion, leaving many producers under continued financial pressure.
• Rising fuel and fertilizer costs tied to the Middle East conflict are stressing US farmers financially and increasing demand for agricultural loans, The Wall Street Journal reports. According to a Federal Reserve Bank of Chicago survey, farm loan repayment rates declined for the tenth consecutive quarter while loan demand continued to grow. Higher input costs are affecting demand for farm supplies by prompting some producers to reduce fertilizer use, switch crops and delay or forgo other purchases. Lenders report more borrowers falling behind on payments and are increasing reserves for potential loan losses. The challenges come on top of weak commodity prices, export disruptions from tariffs, and regional drought conditions that have already strained farm finances affecting demand for farm supplies. While government support programs and loan guarantees provide some protection, many farmers have depleted working capital reserves and remain vulnerable to further cost increases.
• Geopolitical tensions involving Iran are disrupting global fertilizer supply chains and driving fertilizer prices sharply higher just weeks before US spring planting, AgWeb reports. Shipping concerns in the Strait of Hormuz, which is a critical global energy and fertilizer transport route, have triggered rapid price increases and market volatility. Retailers report frequent price changes, with urea rising $140 per ton, ammonia (NH3) up $100 per ton, and UAN up $100 per ton within two weeks. For US farm supplies wholesalers, the disruptions highlight the vulnerability of global supply chains, as the Middle East accounts for about 49% of global urea exports and 30% of ammonia exports. While reduced reliability of international supply could increase reliance on domestic production, potentially creating short-term demand opportunities for US manufacturers, the volatility also raises pressure from farmers and industry groups for government action to stabilize supply and prices.
• Employment by farm supplies wholesalers declined 0.9% in July 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 second quarter, coinciding with spring planting season, and declining in the fall as farm activity slows. The average wage at farm supplies wholesalers rose 3.4% year over year in July to a record high of $31.37 per hour, BLS data shows. While sales by US farm supplies wholesalers are rising this year, much of the increase reflects higher selling prices for fertilizer, crop chemicals, seed, animal feed, and other agricultural inputs rather than broad-based volume growth.

Industry size & Structure

A typical farm supplies wholesaler operates from 1-2 locations, employs about 20 workers, and generates $37.8 million annually.

• The farm supplies wholesaler industry comprises about 4,900 companies that employ 103,175 workers and generate $185.4 billion annually.
• The industry is somewhat concentrated, with the 20 largest firms representing 54% of industry revenue.
• Large domestic companies include Southern States Cooperative (VA), Central Farm Supply (KY), Coastal Agriculture Supply (TX), and Heartland Agricultural Services (IL).