NAICS 325311 Quarterly Industry Report
Nitrogenous Fertilizer Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325311Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325311 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the nitrogenous fertilizer manufacturing sector, drawing on data from the U.S. Census Bureau[5] and USDA Economic Research Service[9] fertilizer market statistics. Additional data is drawn from Bureau of Labor Statistics[10].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325311 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the nitrogenous fertilizer manufacturing industry.
Industry Definition & Overview
Nitrogenous Fertilizer Manufacturing (NAICS 325311) encompasses establishments primarily engaged in manufacturing nitrogenous fertilizer materials and mixing ingredients into nitrogenous fertilizers, including anhydrous ammonia, urea, ammonium nitrate, ammonium sulfate, and nitrogen solution products. According to the U.S. Census Bureau[5], approximately 355 companies operate within this classification, employing roughly 5,900 workers in ammonia synthesis plants, urea granulation facilities, and fertilizer blending operations concentrated in agricultural production regions across the Midwest, Gulf Coast, and Great Plains states.
The industry converts natural gas feedstock through the Haber-Bosch ammonia synthesis process into nitrogen-based fertilizer products consumed by crop farmers, turf and ornamental growers, and industrial chemical users. Anhydrous ammonia and urea represent the largest product categories by volume, while specialty nitrogen products including controlled-release and stabilized nitrogen fertilizers serve premium market segments. The Bureau of Labor Statistics[6] identifies production roles including process operators managing ammonia converters and urea prilling towers, instrumentation technicians maintaining high-pressure reactor control systems, quality assurance specialists performing product analysis, and safety engineers overseeing ammonia storage and handling compliance programs.
Per the SBA Office of Advocacy[7], the industry includes large integrated ammonia producers operating world-scale natural gas reforming facilities alongside smaller regional fertilizer blenders and specialty nitrogen product manufacturers. U.S. nitrogen fertilizer production benefits from competitive natural gas pricing compared to international producers, though the domestic market also imports substantial volumes, with the International Trade Administration[8] reporting nitrogen fertilizer imports exceeding $3.3 billion annually from Trinidad, Russia, and other major exporting nations.
What's Included in This Industry
- Valuation multiples benchmarked to nitrogenous fertilizer manufacturing operations
- Revenue and EBITDA trends for domestic ammonia and urea production facilities
- SBA lending data and financing terms for NAICS 325311 businesses
- Comparable transaction data from recent nitrogen fertilizer plant acquisitions
- Industry risk factors including natural gas pricing, crop demand cycles, and import competition
- Workforce composition and labor cost benchmarks for fertilizer production operations
- Regional market analysis covering Corn Belt and Gulf Coast production centers
- Capital expenditure benchmarks for ammonia synthesis and urea granulation equipment
- Growth projections tied to crop acreage trends and precision agriculture adoption
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Chemical Manufacturing | 325 |
| Industry Group | Pesticide, Fertilizer, and Other Agricultural Chemical Manufacturing | 3253 |
| NAICS Industry | Fertilizer and Compost Manufacturing | 32531 |
| National Industry | Nitrogenous Fertilizer Manufacturing | 325311 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325312 | Phosphatic Fertilizer Manufacturing | Phosphatic fertilizer manufacturers producing complementary fertilizer products frequently blended with nitrogen fertilizers in mixed NPK fertilizer formulations for crop applications |
| 325314 | Fertilizer (Mixing Only) Manufacturing | Fertilizer mixing operations purchasing bulk nitrogen fertilizer materials for blending into custom NPK formulations distributed through retail agricultural dealers |
| 325315 | Compost Manufacturing | Compost manufacturing establishments producing organic nitrogen sources that complement and increasingly compete with synthetic nitrogenous fertilizer products in certain markets |
| 325320 | Pesticide and Other Agricultural Chemical Manufacturing | Pesticide and agricultural chemical manufacturers whose products are frequently applied alongside nitrogen fertilizers as part of integrated crop management programs |
| 211120 | Crude Petroleum Extraction | Natural gas extraction operations producing the primary feedstock consumed in ammonia synthesis through steam methane reforming at nitrogenous fertilizer manufacturing plants |
| 424510 | Grain and Field Bean Merchant Wholesalers | Grain and field bean merchant wholesalers whose purchasing decisions and crop production levels directly drive seasonal demand for nitrogen fertilizer application products |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 16.4% | 29 |
| 2 | Texas | 10.2% | 18 |
| 3 | Washington | 5.1% | 9 |
| 4 | Florida | 5.1% | 9 |
| 5 | Illinois | 4.5% | 8 |
| 6 | Oklahoma | 4.5% | 8 |
| 7 | Iowa | 4.0% | 7 |
| 8 | Idaho | 4.0% | 7 |
| 9 | Oregon | 3.4% | 6 |
| 10 | Arizona | 3.4% | 6 |
% Of Establishments
0%
16%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
24
Total SBA Loans
$6.1M
Total Loan Volume
$255K
Average Loan Size
8 yrs
Average Loan Term
10.50%
Average Interest Rate
80
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Nitrogenous fertilizer manufacturers evaluating SBA financing must consider qualification under the SBA size standards[11] for NAICS 325311, which set the threshold at 1,050 employees for small business classification. The SBA 7(a) loan program[12] supports smaller regional fertilizer blenders and specialty nitrogen product manufacturers acquiring operations or financing seasonal working capital for inventory buildup, while the CDC/504 loan program[13] provides long-term fixed-rate financing for blending equipment, storage facilities, and rail loading infrastructure. Lenders evaluate natural gas supply contracts, seasonal demand patterns, and customer diversification across crop production regions when structuring fertilizer manufacturing loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | KeyBank National Association | 16 | $5.1M | $320K |
| 2 | Zions Bank, A Division of | 8 | $1.0M | $125K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a nitrogen fertilizer manufacturer?
Nitrogen fertilizer manufacturers typically trade at 4x to 7x mid-cycle EBITDA, with valuations highly sensitive to natural gas pricing spreads and nitrogen fertilizer market conditions. Per U.S. Census Bureau[5] data, the industry's 355 firms include both large integrated ammonia producers valued on production capacity and smaller blenders valued on distribution networks and customer relationships.
What SBA loan options are available for nitrogen fertilizer businesses?
The SBA[11] sets the small business threshold at 1,050 employees for NAICS 325311. SBA financing is most accessible for regional fertilizer blenders and specialty nitrogen product manufacturers, with 7(a) loans supporting seasonal working capital and 504 loans financing storage and blending facility investments.
How does natural gas pricing affect nitrogen fertilizer profitability?
Natural gas represents 70% to 85% of ammonia production costs, making gas pricing the primary driver of nitrogen fertilizer manufacturing margins. Per the U.S. Energy Information Administration[14], domestic natural gas pricing has given U.S. nitrogen producers a cost advantage over producers in regions reliant on higher-priced imported natural gas.
What environmental regulations apply to nitrogen fertilizer manufacturers?
The EPA[15] regulates nitrogen fertilizer manufacturing under Clean Air Act standards for ammonia and particulate emissions, RCRA waste management requirements, and Risk Management Program rules for facilities storing anhydrous ammonia above threshold quantities. State-level nutrient management regulations increasingly affect downstream fertilizer application practices.
How do crop prices affect nitrogen fertilizer demand?
Corn and wheat prices directly influence farmer purchasing decisions for nitrogen fertilizer, with the USDA Economic Research Service[9] tracking planted acreage and fertilizer application rates that drive annual nitrogen demand volumes. Higher crop prices incentivize increased planted acreage and more intensive fertilizer application rates.
What are the main risks for nitrogen fertilizer businesses?
Key risks include natural gas price spikes compressing production margins, seasonal demand concentration in spring planting periods, import competition from low-cost international producers, and increasing regulatory pressure on nutrient runoff and water quality. Per the EPA[15], nitrogen fertilizer application practices face growing scrutiny under Clean Water Act nutrient reduction initiatives.
How is precision agriculture affecting fertilizer manufacturing?
Variable-rate application technology and soil testing are shifting demand toward high-efficiency fertilizer products with controlled-release and nitrification inhibitor properties. According to the USDA[16], precision nutrient management reduces per-acre application rates while supporting premium pricing for technologically advanced nitrogen fertilizer formulations.
What workforce challenges do nitrogen fertilizer manufacturers face?
The Bureau of Labor Statistics[6] reports that chemical plant operators and process engineers with ammonia handling experience are in demand across fertilizer manufacturing, with producers facing recruitment challenges in rural manufacturing locations and competition from petrochemical and industrial gas employers.
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]Bureau of Labor Statistics bls.gov
- [7]SBA Office of Advocacy advocacy.sba.gov
- [8]International Trade Administration trade.gov
- [9]USDA Economic Research Service ers.usda.gov
- [10]Bureau of Labor Statistics bls.gov
- [11]SBA size standards sba.gov
- [12]SBA 7(a) loan program sba.gov
- [13]CDC/504 loan program sba.gov
- [14]U.S. Energy Information Administration eia.gov
- [15]EPA epa.gov
- [16]USDA usda.gov
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