NAICS 311224 Quarterly Industry Report
Soybean and Other Oilseed Processing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311224Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311224 provides valuation-focused intelligence for professionals assessing oilseed crushing and processing businesses. Additional data is drawn from Bureau of Labor Statistics[7], U.S. Census Bureau[8].. Data is sourced from USDA NASS[6] oilseed crushing reports, USDA ERS[5] oil crops market analysis, and SBA size standards[9] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for oilseed processing enterprises.
Industry Definition & Overview
Soybean and Other Oilseed Processing (NAICS 311224) encompasses establishments primarily engaged in crushing soybeans and other oilseeds such as cottonseed, sunflower seed, canola (rapeseed), and flaxseed, and refining and blending vegetable oils from these raw materials. The crushing process separates oilseeds into protein meal (soybean meal, canola meal) and crude vegetable oil, which undergoes further refining, bleaching, and deodorizing for food and industrial applications. Industry U.S. Census Bureau[4] classifies oilseed processing as a distinct food manufacturing activity, separate from grain milling operations and downstream food product manufacturing.
The U.S. soybean crushing industry is the world's largest, processing over two billion bushels annually to produce soybean meal for livestock feed and soybean oil for cooking, food manufacturing, and biodiesel feedstock. The USDA Economic Research Service[5] tracks oilseed crush volumes, meal and oil production, and trade flows. Industry expansion continues with new crushing capacity under construction to meet growing domestic and export demand for soybean meal and the renewable diesel industry's increasing appetite for soybean oil feedstock.
Business valuations for oilseed processing operations center on daily crush capacity measured in bushels per day, extraction efficiency and oil yield metrics, soybean and oilseed procurement infrastructure, storage capacity, and proximity to both production regions and export or downstream manufacturing markets. Appraisers evaluate the crush margin (the spread between soybean purchase price and combined meal and oil revenue), energy cost per bushel, and customer contract structures with feed manufacturers, oil refiners, and biodiesel producers. The USDA NASS[6] Oilseed Crushings report and monthly soybean crush data provide industry benchmarking for valuation models.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for soybean and oilseed crushing operations
- Revenue and profitability analysis across soybean meal, soybean oil, cottonseed products, canola products, and specialty oilseed segments
- SBA size standard classification and lending threshold data for NAICS 311224
- Comparable transaction data from recent oilseed crushing facility acquisitions, capacity expansions, and company-level transactions
- Market analysis covering crush margins, soybean meal demand, vegetable oil markets, and renewable diesel feedstock competition
- Workforce and labor cost benchmarking for plant managers, process operators, quality technicians, and grain procurement staff
- Industry risk assessment including soybean price volatility, crush margin compression, biodiesel policy changes, and environmental compliance
- Regulatory compliance overview covering FDA food ingredient standards, EPA air and water permits, and grain dust safety regulations
- Capital expenditure profiles for extraction equipment, desolventizers, oil refining systems, meal dryers, and bulk storage infrastructure
- Production metrics including bushels per day capacity, oil extraction yield, meal protein content, energy per bushel, and crush margin analysis
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Grain and Oilseed Milling | 3112 |
| NAICS Industry | Starch and Vegetable Fats and Oils Manufacturing | 31122 |
| National Industry | Soybean and Other Oilseed Processing | 311224 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311119 | Other Animal Food Manufacturing | Animal food manufacturing operations purchasing soybean meal, canola meal, and other oilseed protein products as primary feed ingredients for livestock rations |
| 311225 | Fats and Oils Refining and Blending | Fats and oils refining and blending operations that further process crude vegetable oils produced by oilseed crushing facilities into finished food-grade products |
| 424510 | Grain and Field Bean Merchant Wholesalers | Grain and field bean merchant wholesalers procuring soybeans, canola, and other oilseeds from farmers and elevators for delivery to crushing plants |
| 325193 | Ethyl Alcohol Manufacturing | Ethyl alcohol manufacturing operations purchasing soybean oil and other vegetable oils as feedstock for biodiesel and renewable diesel fuel production |
| 311221 | Wet Corn Milling and Starch Manufacturing | Wet corn milling operations that share commodity grain procurement logistics and agricultural processing infrastructure with oilseed crushing facilities |
| 493130 | Farm Product Warehousing and Storage | Farm product warehousing including grain elevators and storage terminals that supply soybeans and oilseeds to crushing plants during the processing season |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Iowa | 13.0% | 20 |
| 2 | California | 10.4% | 16 |
| 3 | Illinois | 9.7% | 15 |
| 4 | Indiana | 7.8% | 12 |
| 5 | Minnesota | 6.5% | 10 |
| 6 | Ohio | 6.5% | 10 |
| 7 | Texas | 4.5% | 7 |
| 8 | Georgia | 4.5% | 7 |
| 9 | Missouri | 3.9% | 6 |
| 10 | Nebraska | 3.3% | 5 |
% Of Establishments
0%
13%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for soybean processing?
Soybean and Other Oilseed Processing is classified under NAICS code 311224, covering establishments crushing oilseeds and refining vegetable oils per the U.S. Census Bureau[4] industry classification system.
What is the SBA size standard for oilseed processing?
The SBA[10] sets the size standard for NAICS 311224 at 1,250 employees, qualifying eligible oilseed processing operations for small business government contracting preferences and SBA lending programs.
What products does soybean crushing produce?
Crushing produces soybean meal (high-protein livestock feed ingredient), crude soybean oil (refined for cooking and food manufacturing), and soybean hulls per USDA NASS[6] oilseed crushing data and processing reports.
How are oilseed crushing operations valued?
Valuations focus on daily crush capacity, extraction efficiency, facility condition, procurement logistics, crush margin performance, and customer contracts per USDA ERS[5] oil crops yearbook data and processing benchmarks.
What is the crush margin?
The crush margin measures the gross processing margin, calculated as the combined revenue from soybean meal and soybean oil minus the cost of soybeans, with daily board crush values tracked on commodity exchanges.
How is renewable diesel affecting soybean processing?
Growing renewable diesel production capacity has increased demand for soybean oil feedstock, supporting higher oil prices and encouraging new crush facility investment per USDA ERS[5] bioenergy and oilseed market analysis.
What risks affect oilseed processing operations?
Major risks include soybean price volatility, crush margin compression from capacity expansion, biodiesel and renewable fuel policy changes, energy costs, trade policy impacts on meal and oil exports, and environmental compliance expenses.
Where are U.S. soybean crushing plants located?
Crushing facilities are concentrated in soybean-producing states including Iowa, Illinois, Indiana, Ohio, Minnesota, and Nebraska per USDA NASS[6] oilseed production and crushing facility location data.
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. Census Bureau census.gov
- [5]USDA Economic Research Service ers.usda.gov
- [6]USDA NASS nass.usda.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]U.S. Census Bureau census.gov
- [9]SBA size standards sba.gov
- [10]SBA sba.gov
- [11]SBA-backed lending sba.gov
- [12]SBA 7(a) loans sba.gov
- [13]504 loans sba.gov
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