NAICS 111331 Quarterly Industry Report
Apple Orchards
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111331Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for Apple Orchards (NAICS 111331) draws on data from the USDA National Agricultural Statistics Service[5], the U.S. Census Bureau[6], the Bureau of Labor Statistics[7], and the SBA Office of Size Standards[8]. All statistics reflect the most recently published government data at the time of writing. This report serves as a starting reference for business appraisers, M&A advisors, and lenders evaluating apple orchard operations under NAICS 111331.
Industry Definition & Overview
Apple Orchards (NAICS 111331) encompasses establishments primarily engaged in growing apples. The U.S. Census Bureau[3] classifies this industry within the fruit and tree nut farming subsector, covering all commercial apple varieties grown for fresh market sales, juice and cider processing, and other manufactured apple products [1]. Washington State dominates national production with roughly 47 percent of total U.S. apple acreage, followed by New York, Michigan, Pennsylvania, and California as the other leading producing states [2]. The industry has undergone a decades-long transition from standard-density plantings of 100 to 200 trees per acre to high-density systems with 1,200 to 1,400 dwarf trees supported by trellis structures, which has pushed yields to nearly 18 tons per acre on modern blocks [3].
Approximately 2,298 establishments operate under this NAICS classification per industry data, and national apple tonnage reached roughly 5.1 million tons as the shift toward high-density orchards more than compensated for the 29 percent decline in total acreage since 1980 [4]. Revenue depends on variety mix, with premium varieties like Honeycrisp, Cosmic Crisp, and Fuji commanding packout prices far above commodity varieties destined for juice processing. Labor costs represent the single largest expense category, as hand harvesting remains the dominant method for fresh-market apples despite ongoing mechanical harvesting research at USDA[4] and land-grant university programs [5]. Controlled-atmosphere storage facilities allow year-round marketing of fall-harvested fruit, and this storage capacity represents a major component of enterprise value for orchard operations [6].
What's Included in This Industry
- Fresh market apple production across all commercial varieties
- Processing apple growing for juice, cider, and sauce
- High-density apple orchard operations on trellis systems
- Organic apple farming and certification programs
- Apple rootstock and nursery tree production
- Controlled-atmosphere apple storage facility operation
- Hard cider apple variety cultivation
- U-pick and direct-to-consumer apple orchard sales
- Apple orchard establishment and young tree development
- Contract apple growing for packer-shipper operations
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Fruit and Tree Nut Farming | 1113 |
| NAICS Industry | Noncitrus Fruit and Tree Nut Farming | 11133 |
| National Industry | Apple Orchards | 111331 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111332 | Grape Vineyards | Grape vineyards share perennial fruit crop characteristics with apple orchards, including multi-year establishment periods, trellis infrastructure, and labor-intensive harvest cycles |
| 111339 | Other Noncitrus Fruit Farming | Other noncitrus fruit farming covers stone fruit, berry, and pear operations that often operate alongside apple orchards within diversified fruit farming enterprises |
| 311421 | Fruit and Vegetable Canning | Fruit and vegetable canning establishments purchase processing apples for applesauce, apple butter, and canned apple products under seasonal contracts |
| 424480 | Fresh Fruit and Vegetable Merchant Wholesalers | Fresh fruit and vegetable merchant wholesalers handle apple distribution from packing facilities to retail grocery chains and food service distributors across the country |
| 115114 | Postharvest Crop Activities (except Cotton Ginning) | Postharvest crop activities include grading, sorting, waxing, and packing apples at commercial packinghouse operations that serve fresh market channels |
| 312130 | Wineries | Wineries purchase hard cider apple varieties and processing fruit from orchards for fermented cider production, an expanding market segment |
SBA Lending Summary
40
Total SBA Loans
$20.0M
Total Loan Volume
$500K
Average Loan Size
11 yrs
Average Loan Term
10.15%
Average Interest Rate
1,080
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[9] assigns NAICS 111331 a revenue-based size standard of $4.5 million in average annual receipts. Many commercial apple orchards in Washington and the eastern states approach or exceed this threshold due to the high per-acre revenue of premium variety production. Qualifying businesses access Farm Service Agency loans, USDA disaster assistance, and SBA 7(a) financing for orchard replanting, trellis system installation, and controlled-atmosphere storage construction [7]. Federal crop insurance through the USDA Risk Management Agency[10] offers both yield and revenue protection for apple growers, and the Tree Assistance Program provides cost-share payments for replanting trees lost to freeze, hail, or fire damage [8]. Specialty crop block grants fund marketing initiatives, food safety compliance, and pest management research. Additionally, 504/CDC loans[11] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Provident Bank | 8 | $12.0M | $1.5M |
| 2 | Commerce Bank | 8 | $3.9M | $490K |
| 3 | Live Oak Banking Company | 8 | $2.8M | $350K |
| 4 | Manufacturers and Traders Trust Company | 8 | $880K | $110K |
| 5 | Banner Bank | 8 | $416K | $52K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 111331?
NAICS 111331 covers establishments primarily engaged in growing apples, including fresh market and processing variety orchards, organic apple farms, hard cider variety operations, U-pick operations, and apple nursery stock producers. This encompasses commercial orchards across all major producing regions from Washington State to the eastern seaboard [1].
What is the SBA size standard for Apple Orchards?
An apple orchard qualifies as small under SBA guidelines if its average annual receipts do not exceed $4.5 million, measured over the preceding five completed fiscal years. This threshold is among the higher crop farming categories, reflecting the capital intensity and revenue potential of commercial apple production [7].
How is an apple orchard typically valued for sale?
Apple orchard valuations combine asset-based and income-based methods. Tree age, variety, rootstock, density, and trellis system type drive the productive capacity assessment. Controlled-atmosphere storage facilities, packing lines, and irrigation infrastructure add substantial asset value beyond bare land. Income capitalization uses stabilized net orchard income after deducting harvest labor, storage, packing, and marketing costs from projected fruit revenue. Orchards planted to premium varieties like Honeycrisp command valuation premiums per USDA ERS[12] fruit cost analyses [6].
How many apple orchard establishments operate in the United States?
Approximately 2,298 establishments are classified under NAICS 111331. Washington State alone contains roughly 2,500 apple farms accounting for 47 percent of national acreage, while New York, Michigan, Pennsylvania, and California round out the top producing states per USDA NASS[5] census data [2].
What are the major cost drivers for apple orchards?
Hand-harvest labor is the largest single expense, with Washington orchards employing an average of 22,200 workers during peak harvest periods across the state. Orchard establishment costs for high-density trellis systems run $25,000 to $40,000 per acre before first commercial harvest. Crop protection chemicals for fire blight, apple scab, and codling moth management add recurring spray program expenses. Controlled-atmosphere storage electricity and maintenance costs extend throughout the marketing year as fruit is held for orderly release to buyers [5].
How has high-density planting changed the apple industry?
The shift from standard-density orchards of 100 to 200 trees per acre to high-density plantings of 1,200 to 1,400 dwarf trees per acre has transformed orchard economics. Yields have increased to nearly 18 tons per acre compared to 10 to 12 tons in older systems, while earlier bearing ages reduce the payback period on new plantings. Trellis infrastructure and more expensive rootstock increase upfront capital requirements but generate higher lifetime returns per USDA NASS[5] productivity data [3].
Which apple varieties command premium prices?
Honeycrisp remains the highest-value apple variety in the U.S. market, with packout prices consistently exceeding those of Gala, Fuji, and Granny Smith. Cosmic Crisp, a Washington State University-bred variety released in 2019, has gained rapid market acceptance and commands strong returns. Club varieties with restricted planting licenses, such as Envy, Jazz, and SweeTango, offer growers guaranteed marketing programs and protected pricing structures. Traditional processing varieties like Rome and York generate lower per-bushel returns but serve stable juice and sauce markets [4].
What trends are shaping the apple orchard industry?
Mechanical harvesting platforms that assist hand pickers are reducing labor costs without sacrificing fruit quality for fresh market apples. Climate change is extending growing seasons in northern regions while increasing frost risk during earlier bloom periods. Organic apple production continues to expand in response to retail demand premiums, particularly in Washington and New York. Direct-to-consumer sales through farm stands, U-pick operations, and hard cider tasting rooms are diversifying revenue streams as tracked by the USDA Economic Research Service[12] [4].
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. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [3]U.S. Census Bureau census.gov
- [4]USDA usda.gov
- [5]USDA National Agricultural Statistics Service nass.usda.gov
- [6]U.S. Census Bureau census.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA Office of Size Standards sba.gov
- [9]SBA sba.gov
- [10]USDA Risk Management Agency rma.usda.gov
- [11]504/CDC loans sba.gov
- [12]USDA ERS ers.usda.gov
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