NAICS 111335 Quarterly Industry Report
Tree Nut Farming
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111335Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for NAICS 111335 provides business owners, buyers, and valuation professionals with sector-specific benchmarks and market context for tree nut farming operations. Additional data is drawn from Bureau of Labor Statistics[5], U.S. Census Bureau[6].. Content is compiled from USDA NASS[3] production reports, USDA ERS[4] market outlook data, and SBA[7] regulatory filings to support informed valuation and transaction analysis.
Industry Definition & Overview
Tree Nut Farming (NAICS 111335) encompasses establishments primarily engaged in growing almonds, walnuts, pecans, pistachios, hazelnuts, macadamia nuts, and other tree nuts [1]. The United States is the world's leading producer and exporter of almonds and pistachios, with California alone responsible for roughly 80 percent of the global almond supply. U.S. almond production[3] is forecast near 3.0 billion pounds for the 2025 crop year, while pecan production reached 270.9 million pounds in 2024, and walnut output is expected to rise 18 percent in 2025 following weather-related setbacks the prior season [2]. The domestic tree nut sector generates more than $10 billion in combined annual farm-gate value across all varieties.
Tree nut farming is characterized by substantial upfront capital requirements, as orchards typically take four to eight years from planting to reach full commercial bearing. Operations range from family-owned groves of fewer than 50 acres to large corporate farming enterprises managing thousands of acres with mechanized harvesting, hulling, and processing facilities. The sector faces cyclical price volatility influenced by global supply-demand balances, with almond, walnut, and hazelnut prices recovering from multi-decade lows recorded during the 2022/23 crop year [3]. Water availability in key producing regions, particularly California's Central Valley[4], remains a persistent constraint on expansion and orchard sustainability, shaping both investment decisions and long-term production capacity for the industry.
What's Included in This Industry
- Almond farming and orchard operations
- Walnut farming (English and black walnut varieties)
- Pecan farming and grove management
- Pistachio farming operations
- Hazelnut (filbert) farming
- Macadamia nut farming
- Cashew and Brazil nut farming
- Other tree nut farming not elsewhere classified
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 | Tree Nut Farming | 111335 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111336 | Fruit and Tree Nut Combination Farming | Fruit and tree nut combination farming operations where diversified orchards grow both fruit and nut crops without either category dominating production |
| 111331 | Apple Orchards | Apple orchards that share comparable perennial crop management practices, irrigation infrastructure, and mechanized harvesting technology investments |
| 111332 | Grape Vineyards | Grape vineyards that compete for agricultural land and water resources in California's Central Valley and other western growing regions |
| 111334 | Berry (except Strawberry) Farming | Berry farming establishments that often occupy adjacent agricultural zones and share fresh produce distribution and cold-chain logistics networks |
| 111998 | All Other Miscellaneous Crop Farming | All other miscellaneous crop farming operations that may include minor tree nut production alongside other specialty agricultural commodities |
| 115111 | Cotton Ginning | Cotton ginning and related crop support services that operate in the same agricultural regions and compete for seasonal labor resources |
SBA Lending Summary
16
Total SBA Loans
$2.2M
Total Loan Volume
$140K
Average Loan Size
10 yrs
Average Loan Term
12.13%
Average Interest Rate
32
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[7] classifies Tree Nut Farming under NAICS 111335 with an annual receipts size standard of $3.75 million [4]. Farms with average annual receipts at or below this level qualify as small businesses for federal procurement set-asides, SBA lending programs, and agricultural disaster assistance. While many family-scale orchards operate within this threshold, the tree nut sector also includes large commercial operations that exceed the small business classification. Eligible businesses can access SBA 7(a) loans[8] for working capital, equipment, and acquisition financing, while 504 loans[9] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Northeast Bank | 8 | $2.0M | $250K |
| 2 | Readycap Lending, LLC | 8 | $236K | $30K |
Frequently Asked Questions
Common questions about this industry.
What crops are classified under NAICS 111335?
NAICS 111335 covers all tree nut farming operations including almonds, walnuts, pecans, pistachios, hazelnuts (filberts), macadamia nuts, cashews, and Brazil nuts [1]. The U.S. Census Bureau[10] classifies establishments in this code when tree nut production is the primary agricultural activity and no single fruit crop accounts for half or more of output.
What is the SBA size standard for tree nut farming?
The SBA assigns NAICS 111335 an annual receipts size standard of $3.75 million [4]. This threshold determines eligibility for federal small business programs including SBA-backed loans, contracting preferences, and disaster relief. Per SBA guidelines[11], average annual receipts are calculated over the most recent three completed fiscal years.
How large is the U.S. almond farming industry?
The United States produces roughly 80 percent of the global almond supply, virtually all from California's Central Valley. Industry USDA forecasts near 3.0 billion pounds of almond production for 2025, which would rank as the second-largest crop on record behind 2020's 3.1 billion-pound harvest [2]. Per USDA NASS[3] data, California almond bearing acreage exceeds 1.3 million acres across more than 7,600 farming operations.
What are the primary valuation drivers for tree nut farms?
Orchard valuation depends heavily on bearing acreage and tree age, variety selection and yield history, water rights and irrigation infrastructure, land quality and microclimate suitability, and proximity to hulling and processing facilities. Mature orchards in peak production years command premium valuations compared to newly planted or aging orchards. Per USDA ERS[4] analyses, California almond orchard real estate values have tracked closely with commodity price cycles over the past decade.
How does water availability affect tree nut operations?
Water is the most constraining resource for tree nut farming, particularly in California where drought conditions periodically restrict surface water deliveries. Almond orchards require around 3.5 to 4.0 acre-feet of water annually, making them among the most water-intensive perennial crops. Groundwater pumping costs, water district allocation policies, and the Sustainable Groundwater Management Act all directly impact orchard operating costs and long-term viability. Data from the USDA Natural Resources Conservation Service[12] shows that irrigation efficiency investments have become a priority for growers seeking to reduce water consumption per pound of production.
What price trends are affecting tree nut growers?
Tree nut prices experienced multi-year declines through the 2022/23 crop season, reaching their lowest levels in decades for almonds, walnuts, and hazelnuts. Prices have since recovered through 2023/24 and into 2024/25 as global demand growth absorbed excess inventories [3]. The USDA Foreign Agricultural Service[13] reports that export demand from India, China, and Europe remains the primary driver of U.S. tree nut pricing, with tariff and trade policy changes creating additional volatility.
What is the typical capital investment timeline for a new tree nut orchard?
New tree nut orchards require four to eight years from planting before reaching full commercial production, depending on variety. Almond trees typically begin bearing in year three with full production by year five, while walnut and pecan trees may take six to eight years. Establishment costs including land preparation, tree stock, irrigation systems, and maintenance during non-bearing years can range from $10,000 to $20,000 per acre. This extended payback period is a defining characteristic of tree nut farm valuations and financing requirements.
How do exports influence the U.S. tree nut market?
The United States is the world's largest exporter of almonds and pistachios, with international sales representing a majority of total production for both commodities. Export markets including India, the European Union, and China absorb roughly 70 percent of the U.S. almond crop annually. Per USDA FAS[13] trade data, global tree nut trade exceeded $40 billion in 2024, with U.S. producers holding dominant market share in several categories despite growing competition from Australia, Turkey, and Iran.
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]almond production nass.usda.gov
- [4]California's Central Valley ers.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]U.S. Census Bureau census.gov
- [7]SBA sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]U.S. Census Bureau census.gov
- [11]SBA guidelines sba.gov
- [12]USDA Natural Resources Conservation Service nrcs.usda.gov
- [13]USDA Foreign Agricultural Service fas.usda.gov
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