NAICS 111992 Quarterly Industry Report
Peanut Farming
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 111992Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry profile for NAICS 111992 provides business owners, buyers, and valuation professionals with sector-specific benchmarks and market context for peanut farming operations. Additional data is drawn from Bureau of Labor Statistics[4], U.S. Census Bureau[5].. Content is compiled from USDA NASS[2] crop production reports, USDA ERS[3] peanut market analysis, and SBA[6] regulatory filings to support informed valuation and transaction analysis.
Industry Snapshot
Key metrics for the peanut farming industry.
NAICS Sector
11
Agriculture, Forestry, Fishing and Hunting
Industry Definition & Overview
Peanut Farming (NAICS 111992) encompasses establishments primarily engaged in growing peanuts (groundnuts) for food processing, oil extraction, and direct consumption markets [1]. The U.S. peanut industry represents a roughly $4.5 billion total addressable market, with national production forecast at 2.95 million metric tons for 2024, a 10.8 percent increase over the prior year driven by expanded planted acreage reaching 1.8 million acres, the second-largest total in the past decade [2]. Georgia is the dominant producing state with roughly 850,000 planted acres representing 47 percent of national acreage, followed by Alabama, Florida, Texas, North Carolina, and South Carolina[2] as major production regions [3].
Peanut farming operations range from small family farms growing a few hundred acres in rotation with cotton, corn, and soybeans to large commercial enterprises cultivating thousands of acres with fully mechanized planting, digging, combining, and curing equipment. The crop is typically grown in sandy loam soils across the southeastern United States and portions of the Southwest, with a roughly 140- to 160-day growing season. Four market types, including runner, Virginia, Spanish, and Valencia, serve different end-use applications from peanut butter manufacturing to snack foods and confections. Per USDA ERS[3] market analysis, key industry drivers include domestic peanut butter consumption (which accounts for roughly half of the U.S. edible peanut market), export demand particularly from Europe and Canada, input cost pressures for seed, fertilizer, and crop protection, and the federal peanut program provisions under the Farm Bill that provide price and revenue support to growers.
What's Included in This Industry
- Runner peanut farming (dominant market type)
- Virginia-type peanut production
- Spanish-type peanut farming operations
- Valencia peanut cultivation
- Irrigated peanut farming
- Dryland peanut growing operations
- Organic peanut farming
- Other peanut production establishments
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Crop Production | 111 |
| Industry Group | Other Crop Farming | 1119 |
| NAICS Industry | All Other Crop Farming | 11199 |
| National Industry | Peanut Farming | 111992 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111920 | Cotton Farming | Cotton farming operations frequently rotated with peanuts on southeastern U.S. farms, sharing similar soil types, climate conditions, and agricultural infrastructure |
| 111150 | Corn Farming | Corn farming operations grown in rotation with peanuts to manage soil fertility, nematode pressure, and pest cycles on southeastern cropland |
| 111110 | Soybean Farming | Soybean farming operations that compete for southeastern cropland allocation and whose soybean oil competes with peanut oil in food processing markets |
| 111998 | All Other Miscellaneous Crop Farming | All other miscellaneous crop farming operations where peanut farms have diversified into specialty crops to supplement commodity production revenue |
| 115113 | Crop Harvesting, Primarily by Machine | Crop harvesting services providing specialized peanut digging, inverting, combining, and drying equipment during the concentrated fall harvest season |
| 115112 | Soil Preparation, Planting, and Cultivating | Soil preparation services providing field preparation, precision grading, and fumigation services for commercial peanut production operations |
Frequently Asked Questions
Common questions about this industry.
What is classified under NAICS 111992?
NAICS 111992 covers all peanut farming operations, including the four major market types: runner (used primarily for peanut butter), Virginia (large-kernel varieties for snacking), Spanish (smaller kernels used in candy and oil), and Valencia (typically roasted in-shell) [1]. The U.S. Census Bureau[9] classifies both irrigated and dryland peanut production under this single code.
What is the SBA size standard for peanut farming?
The SBA sets the small business size standard for NAICS 111992 at $2.5 million in average annual receipts [4]. This threshold determines eligibility for federal small business programs including SBA-backed loans, contracting preferences, and disaster relief. Per SBA regulations[10], receipts are calculated as a multi-year average and include government farm program payments.
How large is the U.S. peanut farming industry?
The U.S. peanut sector has a total addressable market of roughly $4.5 billion, with 2024 production forecast at 2.95 million metric tons across 1.8 million planted acres [2]. Per USDA NASS[2] data, Georgia dominates production with about 47 percent of national planted acreage, followed by Alabama, Florida, Texas, North Carolina, and South Carolina.
What are the primary valuation drivers for peanut farms?
Peanut farm valuation depends on total cultivable acreage with suitable sandy loam soils, irrigation infrastructure and water access, historical yield and grade quality records, equipment inventory including specialized planting and harvesting machinery, proximity to shelling plants and buying points, and federal farm program payment history. Per USDA ERS[3] farmland value research, peanut-suitable land in the southeastern U.S. has appreciated as demand for peanut acreage has increased over the past decade.
How do federal farm programs affect peanut growers?
Peanut farmers participate in the federal Price Loss Coverage (PLC) and Agriculture Risk Coverage (ARC) programs under the Farm Bill, which provide payments when market prices or revenues fall below reference levels. The Marketing Assistance Loan program offers short-term financing using peanuts as collateral. Federal crop insurance through the USDA Risk Management Agency[11] provides additional protection against yield and revenue losses, with most commercial peanut acreage enrolled in revenue protection policies.
What crop rotation practices do peanut farmers follow?
Peanuts are typically grown in two- to three-year rotation cycles with cotton, corn, or small grains to manage soil-borne diseases including southern blight, white mold, and nematode populations. Continuous peanut planting leads to declining yields and increasing disease pressure. Per USDA NASS[2] survey data, the allocation of southeastern cropland between peanuts, cotton, and corn shifts annually based on relative commodity prices, contract availability, and agronomic rotation requirements.
What are the main end uses for U.S. peanuts?
Peanut butter manufacturing accounts for roughly half of domestic edible peanut consumption, making it the single largest demand driver for the U.S. peanut crop. Snack peanuts (roasted, salted, flavored) represent the second major category, followed by confections and candy products. Peanut oil extraction and peanut flour production serve food manufacturing and ingredient markets. Export sales, particularly to Canada, Europe, and Mexico, absorb a portion of annual production. Per the USDA Foreign Agricultural Service[12], U.S. peanut exports have grown as global demand for peanut-based foods has expanded.
How does weather affect peanut production risk?
Peanuts require warm temperatures and adequate moisture during the roughly 150-day growing season, making the crop vulnerable to drought during the critical pegging and pod development phases. Excessive rainfall during harvest can cause quality issues including aflatoxin contamination, which can render peanuts unsuitable for food use. Hurricanes and tropical storms during the fall harvest period pose additional risk for southeastern producers. Federal crop insurance through the USDA Risk Management Agency[11] covers both yield losses and quality-related revenue reductions, providing a financial safety net against weather-driven production risks.
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]Alabama, Florida, Texas, North Carolina, and South Carolina nass.usda.gov
- [3]USDA ERS ers.usda.gov
- [4]Bureau of Labor Statistics bls.gov
- [5]U.S. Census Bureau census.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 regulations sba.gov
- [11]USDA Risk Management Agency rma.usda.gov
- [12]USDA Foreign Agricultural Service fas.usda.gov
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