NAICS 325314 Quarterly Industry Report
Fertilizer (Mixing Only) Manufacturing
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 325314Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 325314 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the fertilizer mixing sector, drawing on data from the U.S. Census Bureau[5] and USDA Economic Research Service[8] fertilizer consumption statistics. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 325314 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the fertilizer (mixing only) manufacturing industry.
Industry Definition & Overview
Fertilizer (Mixing Only) Manufacturing (NAICS 325314) encompasses establishments primarily engaged in mixing ingredients made elsewhere into fertilizer products, including dry blend NPK fertilizers, liquid fertilizer solutions, and custom-blended crop nutrient formulations. According to the U.S. Census Bureau[5], approximately 369 businesses operate across 488 establishments nationwide, employing roughly 9,500 workers in blending facilities, liquid mixing plants, and distribution terminals located throughout agricultural production regions serving crop farmers, turf managers, and specialty growers.
These operations purchase bulk nitrogen, phosphate, and potash materials from primary manufacturers and blend them into agronomically balanced formulations tailored to specific soil conditions, crop requirements, and regional growing practices. Dry blending operations use gravity-flow blending towers and rotary drum mixers to combine granular fertilizer ingredients, while liquid blending facilities mix fluid fertilizer components including urea-ammonium nitrate solutions, polyphosphate liquids, and micronutrient additives. The Bureau of Labor Statistics[6] identifies production roles including blending equipment operators, liquid tank farm technicians, quality control specialists performing product analysis, truck drivers delivering bulk and bagged fertilizer products, and agronomists developing custom blending recommendations based on soil test results.
Per the SBA Office of Advocacy[7], fertilizer blenders range from large multi-location retail agricultural supply companies operating blending facilities across multiple states to small single-location dealers serving local farming communities. The industry operates on highly seasonal demand patterns aligned with spring planting and fall application windows, requiring working capital management for raw material inventory buildup and storage capacity to handle peak-season throughput volumes.
What's Included in This Industry
- Valuation multiples benchmarked to fertilizer blending and mixing operations
- Revenue and EBITDA trends for domestic fertilizer mixing businesses
- SBA lending data and financing terms for NAICS 325314 businesses
- Comparable transaction data from recent fertilizer blending company acquisitions
- Industry risk factors including raw material pricing, seasonal demand, and inventory management
- Workforce composition and labor cost benchmarks for blending operations
- Regional market analysis covering Corn Belt and major agricultural production areas
- Capital expenditure benchmarks for blending towers and liquid mixing equipment
- Growth projections tied to precision agriculture and custom blending demand trends
- 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 | Fertilizer (Mixing Only) Manufacturing | 325314 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 325311 | Nitrogenous Fertilizer Manufacturing | Nitrogenous fertilizer manufacturers producing ammonia, urea, and ammonium nitrate bulk materials purchased by mixing operations as primary blending ingredients |
| 325312 | Phosphatic Fertilizer Manufacturing | Phosphatic fertilizer manufacturers producing DAP, MAP, and superphosphate products purchased by blenders for incorporation into mixed NPK fertilizer formulations |
| 325315 | Compost Manufacturing | Compost manufacturing establishments producing organic soil amendments that complement and compete with blended synthetic fertilizer products in certain markets |
| 325320 | Pesticide and Other Agricultural Chemical Manufacturing | Pesticide and agricultural chemical manufacturers whose crop protection products are sold alongside blended fertilizers through shared retail agricultural dealer channels |
| 424910 | Farm Supplies Merchant Wholesalers | Farm supply merchant wholesalers distributing blended fertilizer products and competing with manufacturer-direct sales through retail agricultural dealer networks |
| 111150 | Corn Farming | Corn farming operations representing the single largest end-market for blended nitrogen and NPK fertilizer products applied during spring planting seasons |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Florida | 10.8% | 55 |
| 2 | California | 8.8% | 45 |
| 3 | Texas | 7.3% | 37 |
| 4 | Pennsylvania | 5.3% | 27 |
| 5 | Ohio | 5.1% | 26 |
| 6 | New York | 3.9% | 20 |
| 7 | Washington | 3.9% | 20 |
| 8 | Oregon | 3.5% | 18 |
| 9 | Georgia | 3.3% | 17 |
| 10 | Illinois | 3.3% | 17 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
24
Total SBA Loans
$29.5M
Total Loan Volume
$1.2M
Average Loan Size
15 yrs
Average Loan Term
10.08%
Average Interest Rate
144
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Fertilizer blenders evaluating SBA financing benefit from favorable qualification prospects under the SBA size standards[10] for NAICS 325314, which set the threshold at 550 employees for small business classification. The SBA 7(a) loan program[11] supports fertilizer blending business acquisitions, seasonal working capital lines for raw material inventory buildup, and equipment financing, while the CDC/504 loan program[12] provides long-term fixed-rate financing for blending towers, liquid tank farms, warehouse facilities, and truck fleet expansions. Lenders evaluate supplier relationships, customer diversification across farming operations, and seasonal cash flow management when structuring fertilizer blending loans.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | First Bank of Central Ohio | 16 | $28.3M | $1.8M |
| 2 | BayFirst National Bank | 8 | $1.2M | $150K |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a fertilizer blending operation?
Fertilizer blending businesses typically trade at 3x to 6x EBITDA, with multi-location operations commanding higher multiples based on geographic coverage and customer diversification. Per U.S. Census Bureau[5] data, the industry's 369 firms vary from large regional blending networks valued on distribution infrastructure to smaller local dealers valued primarily on customer relationships.
What SBA loan options are available for fertilizer blending businesses?
The SBA[10] sets the small business threshold at 550 employees for NAICS 325314. Most fertilizer blenders qualify easily given their smaller operational scale, with 7(a) loans supporting acquisitions and seasonal working capital needs, and 504 loans financing blending equipment and storage facility investments.
How does seasonality affect fertilizer blending business operations?
Spring planting creates the peak demand season, typically accounting for 50% to 70% of annual revenue in a compressed two-to-three-month window. Per the USDA Economic Research Service[8], fertilizer application timing aligns with regional planting calendars, requiring blenders to manage substantial raw material inventory buildup months before sales occur.
What are the main risks for fertilizer blending businesses?
Key risks include raw material price volatility compressing blending margins, weather-related planting delays reducing application volumes, customer credit exposure during economic downturns, and competition from direct-to-farm distribution by primary manufacturers. Per the EPA[13], environmental regulations on nutrient management increasingly affect downstream demand patterns.
How is precision agriculture changing the blending business?
Variable-rate application technology and soil testing are driving demand for more precisely formulated custom blends tailored to field-level soil conditions. According to the USDA[14], adoption of precision nutrient management creates opportunities for blenders offering site-specific fertilizer formulations based on detailed soil mapping data.
What licenses are required for fertilizer blending operations?
Fertilizer blenders must obtain state fertilizer manufacturing and distribution licenses, comply with EPA[13] stormwater permits for outdoor storage areas, and meet state environmental agency requirements for dust control and secondary containment. Some states require registered agronomists on staff for making fertilizer application recommendations.
What workforce challenges do fertilizer blenders face?
The Bureau of Labor Statistics[6] reports that blending equipment operators, CDL-licensed truck drivers, and agronomists with crop nutrition expertise are in demand across the fertilizer distribution sector. Seasonal demand patterns create hiring challenges for peak-season temporary workers needed to handle spring and fall application volumes.
How do fertilizer blenders compete with larger manufacturers?
Local blenders compete through agronomic advisory services, custom formulation flexibility, delivery speed to nearby farms, and established relationships with regional farming customers. Per the USDA Economic Research Service[8], proximity to end-use customers and the ability to formulate field-specific blends provide competitive advantages over centralized manufacturing operations.
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]USDA Economic Research Service ers.usda.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
- [13]EPA epa.gov
- [14]USDA usda.gov
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