NAICS 115116 Quarterly Industry Report
Farm Management Services
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 115116Sector: Agriculture, Forestry, Fishing and Hunting (11)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 115116 provides valuation-focused intelligence for professionals assessing farm management service businesses. Additional data is drawn from Bureau of Labor Statistics[8], U.S. Census Bureau[9].. Data is sourced from USDA ERS[6] farmland tenure analysis, USDA NASS[7] land values and cash rental rate surveys, and SBA size standards[10] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for farm management enterprises.
Industry Snapshot
Key metrics for the farm management services industry.
Industry Definition & Overview
Farm Management Services (NAICS 115116) encompasses establishments primarily engaged in providing farm management services on a contract or fee basis, including overseeing crop and livestock production, marketing farm products, and managing farm finances and operations for absentee landowners, institutional investors, and estate trust beneficiaries. Additionally, farm managers coordinate all aspects of agricultural production including input purchasing, custom farming service scheduling, crop marketing, tenant selection, lease negotiation, and financial reporting. The U.S. Census Bureau[5] classifies farm management separately from farm labor contracting (NAICS 115115) and agricultural consulting (NAICS 541690), recognizing the thorough operational management scope of these service providers. The farm management industry has grown as agricultural land ownership increasingly separates from farm operation, with non-operator landlords owning a growing share of U.S. farmland. The USDA Economic Research Service[6] tracks farmland ownership patterns and tenure arrangements that drive demand for professional farm management services. Institutional farmland investors including pension funds, endowments, and investment management firms have expanded agricultural real estate portfolios that require professional farm managers to oversee production, monitor tenant performance, and maximize returns on farmland investment. Business valuations for farm management service operations center on the acreage portfolio under management, fee structure and contract terms, client relationship stability, geographic coverage across productive farmland regions, and the professional expertise of management staff. Appraisers evaluate management fee revenue streams (typically per-acre annual fees plus crop marketing commissions), client retention rates, competitive positioning in regional management markets, and the transferability of management agreements to new ownership. The USDA NASS[7] land values survey and cash rental rate data inform revenue projections for farm management enterprise valuations.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for farm management service operations
- Revenue and profitability analysis across crop management, livestock oversight, farmland leasing, and crop marketing service segments
- SBA size standard classification and lending threshold data for NAICS 115116
- Comparable transaction data from recent farm management company acquisitions, portfolio transfers, and management agreement sales
- Market analysis covering management fee rates, acreage under professional management, and farmland investment growth trends
- Workforce and professional cost benchmarking for farm managers, agronomists, crop marketing specialists, and administrative support staff
- Industry risk assessment including commodity price impacts on management fees, client concentration, farmland value fluctuations, and competition
- Regulatory compliance overview covering fiduciary duties, trust administration, grain marketing regulations, and pesticide management oversight
- Capital expenditure profiles for management technology platforms, field monitoring equipment, and office infrastructure investments
- Production metrics including acres under management per manager, client retention rates, management fee revenue per acre, and crop marketing performance
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 | Farm Management Services | 115116 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 115115 | Farm Labor Contractors and Crew Leaders | Farm labor contractors and crew leaders providing agricultural workers that farm management service companies coordinate for managed property production operations |
| 115112 | Soil Preparation, Planting, and Cultivating | Soil preparation, planting, and cultivating service providers contracted by farm managers to perform field operations on managed agricultural properties |
| 115113 | Crop Harvesting, Primarily by Machine | Crop harvesting service operators scheduled and coordinated by farm management companies for timely harvest on managed farmland properties |
| 531190 | Lessors of Other Real Estate Property | Lessors of other real estate property including farmland leasing operations that overlap with farm management in tenant selection and lease administration |
| 541690 | Other Scientific and Technical Consulting Services | Other scientific and technical consulting services including agricultural consultants who provide specialized agronomic advice alongside farm management services |
| 524210 | Insurance Agencies and Brokerages | Insurance agencies and brokerages providing crop insurance placement and risk management advisory services that coordinate with farm management operations |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 23.8% | 174 |
| 2 | Florida | 8.5% | 62 |
| 3 | Iowa | 7.0% | 51 |
| 4 | Texas | 5.6% | 41 |
| 5 | Minnesota | 5.5% | 40 |
| 6 | Illinois | 4.6% | 34 |
| 7 | Nebraska | 3.5% | 26 |
| 8 | Georgia | 2.7% | 20 |
| 9 | Idaho | 2.6% | 19 |
| 10 | Washington | 2.2% | 16 |
% Of Establishments
0%
24%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
112
Total SBA Loans
$10.3M
Total Loan Volume
$92K
Average Loan Size
8 yrs
Average Loan Term
10.39%
Average Interest Rate
168
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[11] classifies Farm Management Services (NAICS 115116) with a size standard of $10.0 million in average annual receipts. Most farm management companies are regional operations that qualify for SBA-backed lending[12] and USDA agricultural programs through the Farm Service Agency[13] on behalf of their managed farm clients. Eligible businesses can access SBA 7(a) loans[14] for working capital, equipment, and acquisition financing, while 504 loans[15] support major fixed-asset purchases including real estate and heavy machinery.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Community State Bank | 8 | $3.5M | $435K |
| 2 | Horizon Bank | 24 | $1.8M | $73K |
| 3 | Northeast Bank | 16 | $1.3M | $79K |
| 4 | Celtic Bank Corporation | 8 | $1.2M | $150K |
| 5 | BayFirst National Bank | 8 | $752K | $94K |
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for farm management services?
Farm Management Services is classified under NAICS code 115116, covering establishments providing farm management on a contract or fee basis per the U.S. Census Bureau[5] industry classification system.
What is the SBA size standard for farm management services?
The SBA[11] sets the size standard for NAICS 115116 at $10.0 million in average annual receipts, qualifying eligible farm management companies for small business lending and development programs.
What services do farm managers provide?
Services include overseeing crop production, coordinating custom farming operations, marketing harvested crops, managing farm finances, selecting tenants, negotiating leases, and reporting to landowners per USDA ERS[6] farmland tenure and management data.
How are farm management companies valued?
Valuations center on acreage under management, fee structures, client retention rates, geographic coverage, staff expertise, and contract transferability per USDA NASS[7] land value and cash rental rate survey data informing revenue projections.
What drives demand for farm management services?
Growing separation between farmland ownership and operation drives demand, as non-operator landlords and institutional farmland investors need professional managers to oversee production and maximize returns per USDA ERS[6] farmland ownership analysis.
How do farm managers charge for services?
Fee structures typically include per-acre annual management fees ranging from several dollars to over ten dollars per acre, plus percentage-based crop marketing commissions and additional fees for specialized services like improvement oversight.
What risks affect farm management businesses?
Major risks include commodity price declines reducing management fee revenue, client concentration among a few large landowners, competition from other management firms, farmland value fluctuations affecting institutional investor demand, and staff retention challenges.
How has institutional farmland investment affected management demand?
Pension funds, endowments, and private equity firms have expanded farmland investment portfolios requiring professional management, creating growth opportunities for established farm management companies with institutional-grade reporting and oversight capabilities.
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]U.S. Census Bureau census.gov
- [6]USDA Economic Research Service ers.usda.gov
- [7]USDA NASS nass.usda.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]U.S. Census Bureau census.gov
- [10]SBA size standards sba.gov
- [11]SBA sba.gov
- [12]SBA-backed lending sba.gov
- [13]Farm Service Agency fsa.usda.gov
- [14]SBA 7(a) loans sba.gov
- [15]504 loans sba.gov
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