NAICS 424510 Quarterly Industry Report
Grain and Field Bean Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 424510Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 424510 draws on verified data from the U.S. Census Bureau[5], Bureau of Labor Statistics[7], and Small Business Administration[6] to profile the grain and field bean wholesale distribution sector. Our research team analyzes commodity markets, grain storage economics, and agricultural supply chain patterns to provide accurate market intelligence for business valuation purposes. The report covers SBA size standards, related NAICS classifications, and the commodity trading environment shaping grain distribution. Fair Market Value updates this NAICS 424510 profile quarterly to reflect new Census releases and industry developments.
Industry Snapshot
Key metrics for the grain and field bean merchant wholesalers industry.
Industry Definition & Overview
Grain and Field Bean Merchant Wholesalers (NAICS 424510) encompasses establishments primarily engaged in the merchant wholesale distribution of grains such as corn, wheat, oats, barley, and unpolished rice, as well as dry beans, soybeans, and other inedible beans. This classification also includes businesses that operate country or terminal grain elevators primarily for the purpose of wholesaling. These wholesalers form a critical link in the agricultural supply chain, aggregating grain from thousands of individual farms and channeling it to processors, feed manufacturers, ethanol plants, export terminals, and end-use buyers.
Grain wholesaling operates as a commodity trading business where margins depend on volume throughput, storage capacity management, and the ability to execute forward contracts and hedging strategies. Country elevators located in production regions receive grain directly from farmers during harvest, while terminal elevators at transportation hubs consolidate grain for shipment by rail and barge to domestic processors and export facilities. The U.S. Census Bureau[5] requires that establishments take ownership title to qualify as merchant wholesalers, distinguishing them from grain brokers who arrange transactions without taking possession.
The SBA[6] sets the size standard at 200 employees for this industry. USDA grain grading standards govern quality classification and pricing. Futures markets on the Chicago Board of Trade (CME Group) provide price discovery and risk management tools that grain wholesalers use daily. USDA crop reports, export inspection data, and weather patterns directly influence procurement timing and pricing decisions. Seasonal harvest patterns concentrate grain receipts into narrow windows, requiring substantial storage infrastructure and working capital to carry inventory between harvest and eventual sale.
What's Included in This Industry
- Wholesale distribution of corn, wheat, and feed grains
- Distribution of soybeans and oilseed crops
- Wholesale of dry beans and field beans
- Distribution of oats, barley, and sorghum
- Operation of country grain elevators for wholesale purposes
- Operation of terminal grain elevators for wholesale distribution
- Wholesale of unpolished rice and raw grain products
- Distribution of grain for livestock feed manufacturing
- Wholesale of grain for ethanol and biofuel production
- Distribution of grain for export through port terminals
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Wholesale Trade | 42 |
| Subsector | Merchant Wholesalers, Nondurable Goods | 424 |
| Industry Group | Farm Product Raw Material Merchant Wholesalers | 4245 |
| NAICS Industry | Grain and Field Bean Merchant Wholesalers | 42451 |
| National Industry | Grain and Field Bean Merchant Wholesalers | 424510 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 424520 | Livestock Merchant Wholesalers | Distributes livestock through merchant wholesale channels, representing another farm product raw material category closely tied to grain through animal feed demand |
| 424590 | Other Farm Product Raw Material Merchant Wholesalers | Handles other farm product raw materials through wholesale distribution, including cotton, tobacco, and other agricultural commodities not classified as grain |
| 424410 | General Line Grocery Merchant Wholesalers | Distributes general line groceries through wholesale channels, connecting downstream from grain processing into finished food product distribution |
| 424480 | Fresh Fruit and Vegetable Merchant Wholesalers | Handles fresh fruit and vegetable wholesale distribution, representing another agricultural commodity distribution category with similar seasonal patterns |
| 424490 | Other Grocery and Related Products Merchant Wholesalers | Distributes other grocery products including processed grain-based items such as pasta, cereals, and baking supplies through wholesale channels |
| 424690 | Other Chemical and Allied Products Merchant Wholesalers | Handles other chemical and allied products wholesale distribution, including agricultural chemicals and fertilizers used in grain production |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Illinois | 13.3% | 593 |
| 2 | Iowa | 11.9% | 534 |
| 3 | Kansas | 9.2% | 411 |
| 4 | Nebraska | 7.9% | 354 |
| 5 | Minnesota | 5.9% | 264 |
| 6 | North Dakota | 5.5% | 247 |
| 7 | Ohio | 4.3% | 194 |
| 8 | Texas | 4.1% | 184 |
| 9 | South Dakota | 3.3% | 147 |
| 10 | Indiana | 3.2% | 145 |
% Of Establishments
0%
13%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
56
Total SBA Loans
$31.2M
Total Loan Volume
$557K
Average Loan Size
12 yrs
Average Loan Term
11.18%
Average Interest Rate
336
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[6] classifies NAICS 424510 under farm product raw material merchant wholesale trade with a size standard of 200 employees. Businesses at or below this threshold qualify as small for federal contracting preferences and SBA loan programs. Grain and field bean wholesalers can access SBA 7(a) loans[8] for working capital during harvest season inventory buildups and grain handling equipment upgrades. Firms purchasing grain elevator facilities or terminal storage capacity may qualify for 504 loans[9]. The capital-intensive nature of grain storage and transportation infrastructure creates financing needs that scale with handling capacity.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Citizens Community Federal National Association | 16 | $22.8M | $1.4M |
| 2 | 1NB Bank | 8 | $3.2M | $400K |
| 3 | Northeast Bank | 8 | $2.0M | $250K |
| 4 | Newtek Bank, National Association | 8 | $1.6M | $200K |
| 5 | Wallis Bank | 8 | $1.2M | $150K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 424510?
NAICS 424510 covers merchant wholesalers of grains (corn, wheat, oats, barley, rice), soybeans, dry beans, and field beans. It also includes country and terminal grain elevator operators engaged primarily in wholesale distribution. Source: U.S. Census Bureau[5]
What is the SBA size standard for NAICS 424510?
The SBA sets the size standard at 200 employees for grain and field bean merchant wholesalers. Businesses at or below this employee count qualify as small for federal contracting preferences and SBA financing programs. Source: SBA Size Standards[6]
What is the difference between country and terminal grain elevators?
Country elevators sit in grain production regions and receive grain directly from farmers during harvest. Terminal elevators operate at major transportation hubs (river ports, rail terminals) and consolidate grain from multiple country elevators for shipment to processors and export facilities.
How does grain wholesaling relate to commodity futures?
Grain wholesalers use futures contracts on the CME Group (Chicago Board of Trade) for price discovery and risk management. Hedging strategies protect against adverse price movements between grain purchase and resale, making futures market participation a core operational competency.
What NAICS codes are related to grain wholesalers?
Related wholesale codes include 424520 (livestock), 424590 (other farm products), and 424690 (chemicals including agricultural inputs). Supply-side codes include 111110 (soybean farming), 111150 (corn farming), and 111130 (dry pea and bean farming). Source: Census NAICS[5]
Can grain and field bean wholesalers get SBA loans?
Yes, small businesses under NAICS 424510 can access SBA 7(a) loans for working capital and equipment, 504 loans for grain elevator facility purchases, and microloans for smaller needs. Harvest-season inventory financing is a common funding purpose. Source: SBA Loan Programs[10]
How does seasonality affect grain wholesale operations?
Harvest patterns concentrate grain receipts into fall months (September-November for corn and soybeans, June-July for winter wheat). Wholesalers must maintain sufficient storage capacity to receive the harvest and enough working capital to carry inventory until sold throughout the following year. Source: USDA[11]
What role do grain wholesalers play in ethanol production?
Grain wholesalers supply corn to ethanol plants, which consume roughly one-third of the annual U.S. corn crop. This biofuel demand added a major buyer category for grain distributors and strengthened corn basis pricing in regions with ethanol production capacity.
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]SBA sba.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]SBA 7(a) loans sba.gov
- [9]504 loans sba.gov
- [10]SBA Loan Programs sba.gov
- [11]USDA usda.gov
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