NAICS 112511 Quarterly Industry Report
Finfish Farming and Fish Hatcheries
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 112511Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report (NAICS 112511) provides valuation-focused intelligence for professionals assessing finfish farming and fish hatchery businesses. Additional data is drawn from Bureau of Labor Statistics[6], U.S. Census Bureau[7].. Data is sourced from USDA NASS aquaculture surveys[8], USDA ERS aquaculture market analysis[9], and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for aquaculture enterprises.
Industry Definition & Overview
Finfish Farming and Fish Hatcheries (NAICS 112511) encompasses establishments primarily engaged in farm raising finfish such as catfish, trout, salmon, tilapia, and hybrid striped bass, as well as hatcheries producing fingerlings and fry for stocking purposes. The USDA Census of Agriculture[3] and the USDA National Agricultural Statistics Service[4] track aquaculture production data, with catfish farming in Mississippi, Alabama, and Arkansas representing the largest domestic finfish aquaculture segment. Trout production is concentrated in Idaho, North Carolina, and Pennsylvania, while salmon farming in the U.S. remains limited compared to major producing nations.
The industry operates through diverse production systems including pond culture (dominant for catfish), raceways (common for trout), recirculating aquaculture systems (RAS), and net pen operations. Revenue depends on wholesale fish prices, feed costs (typically 50% to 60% of variable expenses), fish survival rates, and market access. The USDA Economic Research Service[5] documents competition from imported farmed fish, particularly tilapia and pangasius from Asia, which has pressured domestic producers. Ornamental fish production (goldfish, koi, tropical species) represents a distinct market segment with different economics and distribution channels.
Business valuations for finfish operations require assessment of pond or tank infrastructure capacity, water supply reliability and quality, species-specific production records, processing capability, buyer contracts, and environmental permits. Recirculating aquaculture systems command different valuation approaches than traditional pond operations due to higher capital costs, lower water usage, and ability to locate closer to urban markets.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for finfish farming and hatchery operations
- Revenue and profitability analysis across catfish, trout, tilapia, ornamental, and other finfish species
- SBA size standard classification and lending threshold data for NAICS 112511
- Comparable transaction data from recent fish farm sales, hatchery acquisitions, and aquaculture facility transfers
- Production system comparison covering pond culture, raceway, recirculating, and net pen operation models
- Workforce and labor cost benchmarking for farm managers, fish culturists, and processing line workers
- Industry risk assessment including disease outbreaks, water quality issues, and import price competition
- Environmental and regulatory compliance overview covering discharge permits, water rights, and species management
- Capital expenditure profiles for ponds, raceways, RAS equipment, aeration systems, and processing facilities
- Production efficiency metrics including feed conversion ratios, survival rates, and harvest weight distributions
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Animal Production and Aquaculture | 112 |
| Industry Group | Aquaculture | 1125 |
| NAICS Industry | Aquaculture | 11251 |
| National Industry | Finfish Farming and Fish Hatcheries | 112511 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 112512 | Shellfish Farming | Shellfish farming operations that share aquaculture industry regulatory frameworks, water quality management systems, and seafood distribution channels |
| 112519 | Other Aquaculture | Other aquaculture operations including alligator, frog, and aquatic plant production that share water resource management and aquaculture permitting systems |
| 311710 | Seafood Product Preparation and Packaging | Seafood product preparation and packaging establishments that purchase farm-raised finfish for processing into retail and food service products |
| 424460 | Fish and Seafood Merchant Wholesalers | Fish and seafood merchant wholesalers that distribute farm-raised finfish products from aquaculture operations to retail and restaurant buyers |
| 114111 | Finfish Fishing | Finfish fishing operations in the wild-capture sector that compete with farm-raised product in wholesale seafood markets and distribution channels |
| 311119 | Other Animal Food Manufacturing | Other animal feed manufacturing operations producing specialized aquaculture feeds including floating pellets and sinking rations for various finfish species |
SBA Lending Summary
16
Total SBA Loans
$5.9M
Total Loan Volume
$368K
Average Loan Size
10 yrs
Average Loan Term
10.50%
Average Interest Rate
192
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[2]
Key Insight: The SBA[11] classifies Finfish Farming and Fish Hatcheries (NAICS 112511) with a size standard of $3.75 million in average annual receipts. Most U.S. finfish farming operations are small to mid-scale enterprises within this threshold, qualifying for SBA-backed lending[12], government contracting preferences, and USDA aquaculture development support programs. 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 | Readycap Lending, LLC | 8 | $3.9M | $485K |
| 2 | Northeast Bank | 8 | $2.0M | $250K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for fish farming?
Finfish Farming and Fish Hatcheries is classified under NAICS code 112511, covering establishments engaged in farm raising finfish of all species and operating fish hatcheries that produce fingerlings for stocking.
What is the SBA size standard for finfish farming?
The SBA[11] sets the size standard for NAICS 112511 at $3.75 million in average annual receipts, qualifying eligible finfish farming operations for small business lending programs and contracting preferences.
What species dominate U.S. finfish aquaculture?
Catfish farming represents the largest U.S. finfish aquaculture segment per USDA NASS[4] data, concentrated in Mississippi, Alabama, and Arkansas. Trout production is the second largest segment, centered in Idaho, followed by tilapia, hybrid striped bass, and ornamental fish species.
What factors drive fish farm valuations?
Key valuation drivers include pond or tank infrastructure capacity, water supply reliability and quality, production system type (pond, raceway, or RAS), species-specific yield records, buyer contracts, processing capability, and environmental permit status per EPA[15] discharge standards.
What is a recirculating aquaculture system?
RAS technology filters and recycles water within enclosed tank systems, reducing water usage by 90% or more compared to pond culture. RAS facilities command higher valuations per unit capacity but require greater capital investment and technical expertise to operate.
What risks affect finfish farming valuations?
Critical risks include fish disease outbreaks, water quality deterioration, import competition from low-cost Asian producers, feed cost volatility, weather and flood exposure, and regulatory changes in discharge permitting per EPA[15] aquaculture effluent guidelines.
How does import competition affect domestic finfish farms?
Imported farmed tilapia, pangasius, and salmon compete directly with domestic production on price per USDA ERS[5] trade data. U.S. producers typically compete on freshness, traceability, and local sourcing advantages rather than price.
What environmental permits do fish farms require?
Fish farms typically need EPA[15] National Pollutant Discharge Elimination System (NPDES) permits for water discharge, state aquaculture licenses, water withdrawal permits, and species-specific stocking authorizations from state fish and wildlife agencies.
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 Census of Agriculture nass.usda.gov
- [4]USDA National Agricultural Statistics Service nass.usda.gov
- [5]USDA Economic Research Service ers.usda.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]U.S. Census Bureau census.gov
- [8]USDA NASS aquaculture surveys nass.usda.gov
- [9]USDA ERS aquaculture market analysis ers.usda.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed lending sba.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
- [15]EPA epa.gov
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