NAICS 112111 Quarterly Industry Report
Beef Cattle Ranching and Farming
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112111Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112111) delivers valuation-ready intelligence for professionals assessing beef cattle ranching and farming businesses. Additional data is drawn from Bureau of Labor Statistics[6], U.S. Census Bureau[7].. Data is compiled from USDA NASS cattle inventory reports[8], USDA ERS livestock analysis[9], and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and succession planning for ranch operations.
Industry Definition & Overview
Beef Cattle Ranching and Farming (NAICS 112111) encompasses establishments primarily engaged in raising cattle for meat production, including cow-calf operations that breed and raise calves, stocker operations that grow weaned calves on pasture, and seed stock producers that supply breeding animals. The USDA National Agricultural Statistics Service[3] reported the United States maintained roughly 87.2 million head of cattle and calves as of January 2024, with beef cows numbering around 28.2 million head. This sector represents one of the largest segments of American agriculture, with operations spread across all 50 states, though concentrated heavily in Texas, Nebraska, Kansas, Oklahoma, and South Dakota.
Cattle inventory has experienced a prolonged contraction cycle driven by drought conditions, elevated input costs for feed and fuel, and aging producer demographics. USDA Economic Research Service[4] data show that beef cattle operations range from small family ranches running fewer than 50 head to large commercial enterprises managing thousands of animals across extensive grazing lands. Revenue generation depends on factors including calf prices, weaning weights, reproductive efficiency, and forage availability. Many operations supplement ranch income through hay sales, hunting leases, or conservation program payments from the USDA Farm Service Agency[5].
Business valuations in this sector must account for the cyclical nature of cattle markets, the value of owned versus leased grazing land, breeding herd genetics, water rights, and infrastructure such as corrals, fencing, and handling facilities. Cow-calf operations typically run on thin margins, making operational efficiency and herd management practices central to profitability assessments.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for beef cattle ranching operations
- Revenue and profitability trend analysis across cow-calf and stocker operation types
- SBA size standard classification and lending threshold data for NAICS 112111
- Comparable transaction data from recent beef cattle ranch sales and acquisitions
- Regional market analysis covering major cattle-producing states and grazing regions
- Workforce and labor cost benchmarking for ranch management and seasonal employees
- Industry risk assessment including drought exposure, commodity price volatility, and disease factors
- Regulatory compliance overview covering animal identification, environmental, and land use requirements
- Capital expenditure profiles for land, livestock, equipment, and infrastructure investments
- Feed cost analysis and input price tracking relevant to operational profitability
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Animal Production and Aquaculture | 112 |
| Industry Group | Cattle Ranching and Farming | 1121 |
| NAICS Industry | Beef Cattle Ranching and Farming, including Feedlots | 11211 |
| National Industry | Beef Cattle Ranching and Farming | 112111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 112112 | Cattle Feedlots | Cattle feedlot operations that purchase weaned calves from cow-calf ranches for grain-based finishing to market weight before slaughter |
| 112120 | Dairy Cattle and Milk Production | Dairy cattle and milk production operations that share breeding stock markets, veterinary service infrastructure, and cattle genetics resources |
| 311611 | Animal (except Poultry) Slaughtering | Animal slaughtering establishments that process finished beef cattle into wholesale primal cuts, subprimal cuts, and rendering byproducts |
| 311612 | Meat Processed from Carcasses | Meat processed from purchased carcasses facilities that further fabricate beef into packaged consumer products and value-added retail items |
| 424520 | Livestock Merchant Wholesalers | Livestock wholesale merchants and auction market dealers that support cattle marketing transactions between ranch producers and downstream processors |
SBA Lending Summary
304
Total SBA Loans
$103.5M
Total Loan Volume
$340K
Average Loan Size
10 yrs
Average Loan Term
10.52%
Average Interest Rate
600
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[11] classifies Beef Cattle Ranching and Farming (NAICS 112111) with a size standard of $3.0 million in average annual receipts. Operations at or below this revenue threshold qualify as small businesses eligible for SBA-backed lending programs, government contracting preferences, and USDA[12] support initiatives. Most beef cattle ranches in the United States fall well within this threshold, reflecting the prevalence of family-scale operations across the sector. Eligible businesses can access SBA 7(a) loans[13] for working capital, equipment, and acquisition financing, while 504 loans[14] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | OakStar Bank | 32 | $67.2M | $2.1M |
| 2 | Midwest Regional Bank | 8 | $5.9M | $733K |
| 3 | Readycap Lending, LLC | 32 | $5.3M | $167K |
| 4 | Northeast Bank | 8 | $3.2M | $400K |
| 5 | First Bank | 8 | $3.0M | $377K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for beef cattle ranching?
Beef Cattle Ranching and Farming is classified under NAICS code 112111, which covers establishments primarily engaged in raising cattle for beef production, including cow-calf, stocker, and seed stock operations.
What is the SBA size standard for beef cattle ranching?
The SBA[11] sets the size standard for NAICS 112111 at $3.0 million in average annual receipts, qualifying most family-operated ranches for small business programs and lending support.
How many beef cattle are in the United States?
The USDA NASS[3] reported roughly 87.2 million total cattle and calves as of January 2024, with beef cows specifically numbering around 28.2 million head across all states.
What factors affect beef cattle ranch valuations?
Key valuation drivers include owned and leased land acreage, water rights, breeding herd size and genetics, infrastructure condition, historical revenue per head, reproductive efficiency rates, and regional cattle market conditions as tracked by the USDA Agricultural Marketing Service[15].
What are the main revenue sources for beef cattle ranches?
Primary revenue comes from calf and feeder cattle sales, with supplemental income from breeding stock sales, hay production, grazing leases, hunting access fees, and USDA conservation program[16] payments for land stewardship practices.
Which states lead in beef cattle production?
Texas leads the nation in beef cattle inventory, followed by Nebraska, Kansas, Oklahoma, and South Dakota per USDA NASS cattle inventory data[8], with these five states collectively maintaining over 40% of the national beef cow herd.
What risks should valuators consider for beef cattle operations?
Critical risk factors include drought and forage availability, cattle price cycle volatility, feed cost fluctuations, disease outbreaks such as bovine respiratory disease, regulatory changes in USDA animal identification programs[17], and succession challenges for aging ranch operators.
How does the cattle cycle impact business valuations?
The cattle cycle, typically spanning 8 to 12 years from expansion to contraction, directly impacts herd values, calf prices, and operating margins. USDA ERS[4] tracks these cyclical patterns, which valuators must incorporate when projecting future cash flows and establishing appropriate discount rates.
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]USDA National Agricultural Statistics Service nass.usda.gov
- [4]USDA Economic Research Service ers.usda.gov
- [5]USDA Farm Service Agency fsa.usda.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]U.S. Census Bureau census.gov
- [8]USDA NASS cattle inventory reports nass.usda.gov
- [9]USDA ERS livestock analysis ers.usda.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]USDA usda.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
- [15]USDA Agricultural Marketing Service ams.usda.gov
- [16]USDA conservation program nrcs.usda.gov
- [17]USDA animal identification programs aphis.usda.gov
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