NAICS 111160 Quarterly Industry Report
Rice Farming
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111160Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for Rice Farming (NAICS 111160) integrates data from the USDA National Agricultural Statistics Service[3], the USDA Economic Research Service[4], the U.S. Census Bureau[5], and the SBA Office of Size Standards[6]. All statistics reflect the most recently published government data at the time of writing. Additional data is drawn from Bureau of Labor Statistics[7].. This report serves as a starting reference for business appraisers, M&A advisors, and lenders evaluating rice farming operations under NAICS 111160.
Industry Snapshot
Key metrics for the rice farming industry.
NAICS Sector
11
Agriculture, Forestry, Fishing and Hunting
Industry Definition & Overview
Rice Farming (NAICS 111160) encompasses establishments primarily engaged in growing rice, excluding wild rice operations that are classified separately. The U.S. Census Bureau[2] places this industry within oilseed and grain farming, covering conventional paddy rice production, organic rice growing, seed rice cultivation, and specialty aromatic varieties such as jasmine and basmati [1]. Arkansas produces roughly half of all domestic rice, followed by California, Louisiana, Mississippi, Missouri, and Texas, and these six states account for virtually the entire national crop [2]. Operations cultivate long-grain, medium-grain, and short-grain varieties, with long-grain types dominant in the Southern states and medium-grain Calrose varieties commanding premium prices in the Sacramento Valley [3]. The industry comprises approximately 5,563 rice farms managing a collective 2.8 million acres, and most are family-owned operations that have grown rice across multiple generations per USA Rice industry data [4]. Revenue depends on world commodity pricing, USDA marketing loan and price support programs, milling quality grades, and export demand from Mexico, Central America, and the Caribbean [5].
The USDA National Agricultural Statistics Service[3] reported production recovered to roughly 218 million hundredweight in 2023, and the broader rice industry contributes more than $34 billion to the national economy when downstream milling, distribution, and processing activities are included [6]. Water availability and pumping costs represent persistent operational concerns, particularly in regions drawing from declining aquifer levels, and environmental programs that compensate producers for wildlife habitat in flooded rice fields have become an increasingly valuable supplemental revenue source [7].
What's Included in This Industry
- Long-grain rice production in Southern states
- Medium-grain Calrose rice cultivation in California
- Short-grain rice farming for specialty markets
- Organic rice production operations
- Seed rice growing and certification
- Aromatic rice varieties including jasmine and basmati
- Paddy field levee construction and water management
- On-farm rice drying and storage operations
- Ratoon crop rice harvesting where climate permits
- Rice straw management and baling for byproduct sales
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Oilseed and Grain Farming | 1111 |
| NAICS Industry | Rice Farming | 11116 |
| National Industry | Rice Farming | 111160 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111140 | Wheat Farming | Wheat farming is a fellow grain crop industry that shares federal commodity program structures and competes for planted acreage in rotation-eligible regions |
| 111150 | Corn Farming | Corn farming operates within the same oilseed and grain farming subsector and its commodity pricing influences rice acreage allocation decisions nationwide |
| 111191 | Oilseed and Grain Combination Farming | Oilseed and grain combination farming includes diversified operations that may rotate rice with soybeans in Arkansas and Mississippi Delta regions |
| 311212 | Rice Milling | Rice milling establishments clean, hull, polish, and package raw rice for consumer and food service markets, serving as the primary downstream buyer |
| 424510 | Grain and Field Bean Merchant Wholesalers | Grain and grain product merchant wholesalers handle rice procurement, storage, and distribution between farms and milling or export facilities |
| 115112 | Soil Preparation, Planting, and Cultivating | Soil preparation services perform precision land leveling and field grading essential for maintaining uniform water depth across rice paddies |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 111160?
NAICS 111160 covers establishments primarily engaged in growing rice, excluding wild rice operations classified separately. This includes conventional paddy rice farms, organic rice producers, seed rice growers, and operations cultivating specialty aromatic varieties such as jasmine or basmati for niche domestic markets [1].
What is the SBA size standard for Rice Farming?
A rice farming business qualifies as small under SBA guidelines if its average annual receipts do not exceed $2.25 million, calculated as a five-year average. This revenue-based threshold applies uniformly to all establishments classified under NAICS 111160, regardless of total acreage or headcount [8].
How many rice farming establishments operate in the United States?
Approximately 5,563 rice farms operate across six primary producing states, managing a collective 2.8 million acres per USA Rice industry data. Arkansas alone accounts for roughly half the national rice acreage, with California, Louisiana, Mississippi, Missouri, and Texas producing the remainder [4].
What makes rice farming different from other grain crops?
Rice requires standing water for much of the growing season, necessitating substantial infrastructure investments in levees, pumping stations, and precision land grading that other grain crops do not demand. Fields must be laser-leveled to tolerances of fractions of an inch to maintain uniform flood depth across the paddy. Water management costs, including fuel for pumps and fees for surface water delivery, compose a larger share of total expenses than in wheat or corn production as documented in USDA ERS[4] commodity cost estimates. Environmental regulations governing water discharge add compliance obligations unique to this crop [7].
Which states produce the most rice?
Arkansas dominates U.S. rice production with roughly half the national crop, concentrated in the Grand Prairie and Delta regions east of Little Rock. California ranks second, specializing in medium-grain Calrose varieties grown in the Sacramento Valley. Louisiana, Mississippi, Missouri, and Texas round out the six primary producing states, and together they account for virtually all commercially grown rice in the country according to USDA NASS[3] data [2].
How do water resources affect rice farm values?
Water access is the single most influential factor in rice farmland pricing because the crop requires sustained flooding through much of the growing season. Farms with senior surface water rights or access to reliable reservoir systems command significant premiums over properties dependent on declining groundwater from the Mississippi Alluvial Aquifer. Pumping depth directly affects operating costs, and farms requiring lifts exceeding 100 feet face materially higher fuel and equipment expenses that reduce net returns [7].
What government programs support rice farmers?
Rice producers participate in Price Loss Coverage and Agriculture Risk Coverage through the USDA Farm Service Agency, which provide payments when market prices or county revenues fall below statutory reference levels. Marketing assistance loans allow producers to use stored rice as collateral for post-harvest cash flow. Federal crop insurance through the Risk Management Agency[10] covers yield and revenue shortfalls, and conservation programs such as the Environmental Quality Incentives Program offer cost-share payments for water management improvements [9].
What trends are shaping the rice farming industry?
Alternate wetting and drying irrigation techniques are reducing water consumption by 20 to 30 percent on participating farms while lowering methane emissions from flooded paddies. Herbicide-resistant rice varieties have expanded weed management options but raised concerns about gene flow to weedy red rice populations. Export market diversification beyond traditional Western Hemisphere buyers toward Middle Eastern and sub-Saharan African destinations is reshaping marketing strategies. Carbon credit opportunities tied to reduced-emission production practices represent an emerging supplemental revenue source tracked by the USDA Climate Hubs[11] [6].
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau census.gov
- [3]USDA National Agricultural Statistics Service nass.usda.gov
- [4]USDA Economic Research Service ers.usda.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA Office of Size Standards sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA sba.gov
- [9]504/CDC loans sba.gov
- [10]Risk Management Agency rma.usda.gov
- [11]USDA Climate Hubs climatehubs.usda.gov
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