NAICS 115111 Quarterly Industry Report
Cotton Ginning
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 115111Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 115111 provides valuation-focused intelligence for professionals assessing cotton ginning businesses and facilities. Additional data is drawn from Bureau of Labor Statistics[9], U.S. Census Bureau[10].. Data is sourced from USDA NASS[7] cotton ginnings reports, USDA ERS[8] cotton market analysis, and SBA size standards[11] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for cotton ginning enterprises.
Industry Snapshot
Key metrics for the cotton ginning industry.
Industry Definition & Overview
Cotton Ginning (NAICS 115111) encompasses establishments primarily engaged in ginning cotton, the process of separating cotton lint from seeds and preparing baled cotton for sale to textile mills and cotton merchants. Additionally, cotton gins serve as critical post-harvest infrastructure in the cotton supply chain, receiving seed cotton from farm operations and producing baled lint cotton graded by the USDA Agricultural Marketing Service[5] classing offices. The U.S. Census Bureau[6] classifies cotton ginning as a support activity for crop production, distinct from cotton farming (NAICS 111920) and cotton textile manufacturing operations. The U.S. cotton ginning industry is concentrated in the Cotton Belt states, with Texas, Georgia, Mississippi, Arkansas, and the Carolinas accounting for the majority of active gin facilities. The USDA National Agricultural Statistics Service[7] tracks annual cotton production, gin counts, and ginning activity through its Cotton Ginnings reports. Industry consolidation has reduced the total number of active gins while increasing average gin capacity, as modern high-capacity facilities process larger volumes to achieve operating cost efficiencies that smaller legacy gins cannot match. Business valuations for cotton ginning operations center on processing equipment condition and throughput capacity, gin stand configuration (roller versus saw gins), lint cleaning and bale press systems, seed cotton storage and module handling infrastructure, and geographic positioning relative to cotton production acreage. Appraisers must evaluate seasonal use rates that concentrate revenue during the fall harvest window, customer relationships with cotton growers, cottonseed byproduct revenue, and compliance with environmental regulations governing gin waste and dust emissions. The USDA Economic Research Service[8] cotton market data and regional ginning cost studies inform income-based valuation models for cotton gin enterprises.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for cotton ginning operations
- Revenue and profitability analysis covering ginning fees, cottonseed sales, and warehouse and storage services
- SBA size standard classification and lending threshold data for NAICS 115111
- Comparable transaction data from recent cotton gin sales, facility acquisitions, and cooperative restructuring transactions
- Regional market analysis covering Texas High Plains, Mid-South, Southeast, and Southwest cotton ginning regions
- Workforce and labor cost benchmarking for gin managers, equipment operators, module truck drivers, and seasonal gin hands
- Industry risk assessment including crop volume variability, acreage shifts, equipment obsolescence, and environmental compliance costs
- Regulatory compliance overview covering USDA cotton classing, EPA gin dust emission standards, and state environmental permits
- Capital expenditure profiles for gin stands, lint cleaners, bale presses, module feeders, and seed cotton storage systems
- Production metrics including bales per season, bales per hour capacity, ginning turnout percentages, and cost per bale benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Agriculture, Forestry, Fishing and Hunting | 11 |
| Subsector | Support Activities for Agriculture and Forestry | 115 |
| Industry Group | Support Activities for Crop Production | 1151 |
| NAICS Industry | Support Activities for Crop Production | 11511 |
| National Industry | Cotton Ginning | 115111 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 111920 | Cotton Farming | Cotton farming operations that deliver seed cotton to ginning facilities and depend on gin proximity, capacity, and pricing for harvest logistics planning |
| 313110 | Fiber, Yarn, and Thread Mills | Fiber, yarn, and thread mill operations that purchase ginned cotton lint from gins and merchants for spinning into yarn and textile manufacturing |
| 424590 | Other Farm Product Raw Material Merchant Wholesalers | Other farm product raw material merchant wholesalers including cotton merchants who purchase ginned bales and market them to domestic and international textile buyers |
| 311224 | Soybean and Other Oilseed Processing | Soybean and other oilseed processing operations that purchase cottonseed from gins for crushing into cottonseed oil, meal, and hulls for animal feed |
| 423820 | Farm and Garden Machinery and Equipment Merchant Wholesalers | Farm and garden machinery merchant wholesalers distributing cotton harvesting, module building, and ginning equipment to cotton farming and ginning operations |
| 493110 | General Warehousing and Storage | General warehousing and storage establishments including cotton warehouses that store ginned bales and issue warehouse receipts for USDA marketing loan programs |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 24.4% | 43 |
| 2 | Georgia | 22.7% | 40 |
| 3 | North Carolina | 10.2% | 18 |
| 4 | Arkansas | 9.1% | 16 |
| 5 | Alabama | 8.5% | 15 |
| 6 | Missouri | 5.7% | 10 |
| 7 | South Carolina | 4.5% | 8 |
| 8 | California | 3.4% | 6 |
| 9 | Mississippi | 2.8% | 5 |
| 10 | Louisiana | 2.8% | 5 |
% Of Establishments
0%
24%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
8
Total SBA Loans
$280K
Total Loan Volume
$35K
Average Loan Size
10 yrs
Average Loan Term
14.00%
Average Interest Rate
16
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[12] classifies Cotton Ginning (NAICS 115111) with a size standard of $14.0 million in average annual receipts. Many cotton gins operate as farmer-owned cooperatives or independent businesses that qualify for SBA-backed lending[13] and USDA agricultural support programs including the Farm Service Agency[14] cotton marketing assistance loan program. Eligible businesses can access SBA 7(a) loans[15] for working capital, equipment, and acquisition financing, while 504 loans[16] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Readycap Lending, LLC | 8 | $280K | $35K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for cotton ginning?
Cotton Ginning is classified under NAICS code 115111, covering establishments primarily engaged in ginning cotton per the U.S. Census Bureau[6] industry classification system.
What is the SBA size standard for cotton ginning?
The SBA[12] sets the size standard for NAICS 115111 at $14.0 million in average annual receipts, qualifying eligible cotton ginning operations for small business lending programs and government contracting preferences.
How are cotton gins valued?
Valuations focus on processing equipment capacity and condition, geographic position relative to cotton acreage, seasonal throughput volume, ginning turnout rates, cottonseed revenue, and customer relationships with cotton growers per USDA NASS[7] ginning data.
What revenue streams do cotton gins generate?
Primary revenue comes from per-bale ginning fees charged to growers, with additional income from cottonseed sales to crushers, lint cotton marketing margins, bale storage fees, and government program payments per USDA ERS[8] cotton market analysis.
Where are U.S. cotton gins concentrated?
Cotton gins are concentrated in the Cotton Belt states including Texas (the largest producer), Georgia, Mississippi, Arkansas, North Carolina, and Alabama per USDA NASS[7] cotton production and ginnings reporting data.
What risks affect cotton ginning operations?
Major risks include cotton acreage shifts to competing crops, drought and weather impacts on cotton production volume, equipment obsolescence requiring capital reinvestment, environmental compliance costs for gin dust and waste, and seasonal revenue concentration.
How has the cotton ginning industry consolidated?
Industry consolidation has reduced total active gin counts while increasing average facility capacity, as modern high-throughput gins achieve cost efficiencies that smaller operations cannot match per USDA NASS[7] gin count data and cotton ginnings survey reports.
What environmental regulations apply to cotton gins?
Cotton gins must comply with EPA[17] National Emission Standards for Hazardous Air Pollutants (NESHAP) for cotton gin dust, state air quality permits, wastewater discharge requirements, and solid waste disposal regulations for gin trash and seed residue.
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. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]USDA Agricultural Marketing Service ams.usda.gov
- [6]U.S. Census Bureau census.gov
- [7]USDA National Agricultural Statistics Service nass.usda.gov
- [8]USDA Economic Research Service ers.usda.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]U.S. Census Bureau census.gov
- [11]SBA size standards sba.gov
- [12]SBA sba.gov
- [13]SBA-backed lending sba.gov
- [14]Farm Service Agency fsa.usda.gov
- [15]SBA 7(a) loans sba.gov
- [16]504 loans sba.gov
- [17]EPA epa.gov
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