NAICS 111419 Quarterly Industry Report
Other Food Crops Grown Under Cover
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111419Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for NAICS 111419 provides business owners, buyers, and valuation professionals with sector-specific benchmarks and market context for greenhouse and protected-culture food crop operations. Additional data is drawn from Bureau of Labor Statistics[5].. Content is compiled from USDA NASS[4] census data, USDA ERS[3] market research, and SBA[6] regulatory filings to support informed valuation and transaction analysis.
Industry Definition & Overview
Other Food Crops Grown Under Cover (NAICS 111419) encompasses establishments primarily engaged in growing food crops (except mushrooms) under glass or protective cover, including greenhouses, high tunnels, shade houses, and indoor vertical farming facilities [1]. This classification covers hydroponic, aeroponic, and aquaponic production systems alongside traditional greenhouse growing methods for vegetables, herbs, fruits, and sprouts. The sector has experienced rapid growth driven by consumer demand for locally grown produce, year-round availability of fresh vegetables, and advances in controlled-environment agriculture[3] technology that have improved yields and reduced resource consumption per unit of output [2].
Greenhouse and indoor food production operations range from small-scale high-tunnel farms growing seasonal vegetables to massive glass-covered complexes spanning hundreds of acres and producing tomatoes, peppers, cucumbers, and leafy greens year-round. The industry also includes a growing segment of urban vertical farms using LED lighting and hydroponic systems to produce leafy greens and herbs in warehouse-style facilities. Capital intensity is high, with modern greenhouse and vertical farming operations requiring substantial investment in structures, climate control, irrigation, lighting, and automation systems. Operating costs are dominated by energy (heating, cooling, and supplemental lighting), labor, and growing media or nutrient solutions. Competition from field-grown domestic produce[4] and Mexican greenhouse imports represents a persistent pricing pressure on domestic protected-culture growers.
What's Included in This Industry
- Greenhouse vegetable farming (tomatoes, peppers, cucumbers)
- Hydroponic food crop production
- Vertical farming and indoor agriculture operations
- Greenhouse leafy green and herb production
- High-tunnel and hoop house food crop growing
- Aeroponic and aquaponic food production systems
- Sprout and microgreen farming under cover
- Other protected-culture food crop establishments
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Greenhouse, Nursery, and Floriculture Production | 1114 |
| NAICS Industry | Food Crops Grown Under Cover | 11141 |
| National Industry | Other Food Crops Grown Under Cover | 111419 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111411 | Mushroom Production | Mushroom production establishments that share controlled-environment agriculture infrastructure and techniques but are classified separately from other covered food crops |
| 111219 | Other Vegetable (except Potato) and Melon Farming | Other vegetable and melon farming operations conducted in open-field settings that compete directly with greenhouse-grown produce in retail markets |
| 111422 | Floriculture Production | Floriculture production establishments that use similar greenhouse infrastructure and growing systems but focus on ornamental rather than food crops |
| 111421 | Nursery and Tree Production | Nursery and tree production operations that share greenhouse technology, climate control systems, and protected-culture growing methodologies |
| 111998 | All Other Miscellaneous Crop Farming | All other miscellaneous crop farming that may include minor protected-culture food production as part of a diversified farming operation |
| 115112 | Soil Preparation, Planting, and Cultivating | Soil preparation services providing greenhouse bed construction, growing media installation, and site preparation for protected-culture facilities |
SBA Lending Summary
8
Total SBA Loans
$2.0M
Total Loan Volume
$250K
Average Loan Size
10 yrs
Average Loan Term
10.25%
Average Interest Rate
96
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[6] classifies Other Food Crops Grown Under Cover under NAICS 111419 with an annual receipts size standard of $4.5 million [3]. Operations at or below this revenue threshold qualify as small businesses for federal procurement preferences, SBA-backed loan programs, and agricultural support initiatives. The sector spans a wide range of operation sizes, from small-scale local greenhouse growers to large commercial facilities exceeding this threshold. Eligible businesses can access SBA 7(a) loans[7] for working capital, equipment, and acquisition financing, while 504 loans[8] 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 |
Frequently Asked Questions
Common questions about this industry.
What food crops are classified under NAICS 111419?
NAICS 111419 covers all food crops grown under protective cover except mushrooms, which are classified under NAICS 111411. Common crops include greenhouse tomatoes, peppers, cucumbers, lettuce, herbs, sprouts, microgreens, and other vegetables grown in greenhouses, high tunnels, or indoor vertical farming facilities [1]. The U.S. Census Bureau[9] defines the scope as establishments where the primary activity is growing food crops under glass or protective cover.
What is the SBA size standard for greenhouse food crop operations?
The SBA sets the small business size standard for NAICS 111419 at $4.5 million in average annual receipts [3]. Operations meeting this threshold qualify for federal small business contracting preferences, SBA-guaranteed lending programs, and disaster assistance. Per SBA guidelines[10], average annual receipts are calculated over the most recent completed fiscal years.
How large is the U.S. greenhouse food production industry?
The U.S. greenhouse vegetable and food crop sector has grown substantially over the past two decades, driven by consumer demand for year-round fresh produce and locally grown food. Per USDA NASS[4] census data, greenhouse vegetable production area has expanded considerably, with tomatoes, peppers, and cucumbers representing the largest crop categories by acreage under cover. The total market value of greenhouse-grown food in the United States is estimated in the billions of dollars when including all crop types and production methods.
What are the main types of protected-culture growing systems?
Protected-culture food production includes traditional heated glass greenhouses, unheated high tunnels and hoop houses, hydroponic systems growing plants in nutrient solution without soil, aeroponic systems misting plant roots with nutrient solution, aquaponic systems integrating fish farming with plant production, and indoor vertical farms using stacked growing beds with LED lighting. Each system has different capital costs, operating expenses, and crop suitability profiles. Per USDA ERS[3] technology assessments, hydroponic and vertical farming adoption has accelerated particularly for leafy green and herb production.
What factors drive the valuation of a greenhouse farming operation?
Key valuation factors include facility size, age, and condition of greenhouse structures and environmental control systems, growing system type and technology level, water and energy infrastructure, crop mix and customer contract base, geographic location relative to consumption markets, and workforce availability. Modern high-technology greenhouse operations with automated climate control, fertigation, and harvesting systems typically command higher valuations than older manually operated facilities with comparable growing area.
How do energy costs affect greenhouse profitability?
Energy is one of the largest operating expenses for greenhouse food production, used for heating during cold months, supplemental lighting during short-day periods, cooling and ventilation during warm seasons, and powering irrigation and climate control automation. Natural gas and electricity costs can represent 15 to 30 percent of total operating expenses depending on climate zone and facility efficiency. The USDA Natural Resources Conservation Service[11] offers programs supporting energy efficiency improvements including high-efficiency heating systems, thermal curtains, and renewable energy installations for agricultural operations.
What is the outlook for vertical farming within this industry?
Vertical farming has attracted substantial venture capital investment over the past decade, with companies building large indoor facilities producing leafy greens, herbs, and strawberries using LED lighting and hydroponic systems. The segment has faced profitability challenges due to high energy costs and capital requirements, with several high-profile companies restructuring or closing operations. Per USDA ERS[3] market analysis, vertical farming appears most viable for high-value, short-shelf-life crops sold in proximity to urban population centers where transportation cost savings offset higher production costs.
How does competition from Mexican greenhouse imports affect domestic growers?
Mexico has become a major greenhouse vegetable exporter to the United States, particularly for tomatoes, peppers, and cucumbers, where lower labor and energy costs provide pricing advantages. Mexican greenhouse production has expanded rapidly over the past two decades, capturing growing market share in the U.S. fresh produce market. The USDA Foreign Agricultural Service[12] reports that greenhouse vegetable imports from Mexico have grown at sustained double-digit rates, creating competitive pressure on domestic growers who must differentiate through quality, local sourcing appeal, and year-round proximity to regional distribution networks.
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]controlled-environment agriculture ers.usda.gov
- [4]field-grown domestic produce nass.usda.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA sba.gov
- [7]SBA 7(a) loans sba.gov
- [8]504 loans sba.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA guidelines sba.gov
- [11]USDA Natural Resources Conservation Service nrcs.usda.gov
- [12]USDA Foreign Agricultural Service fas.usda.gov
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