NAICS 424590 Quarterly Industry Report
Other Farm Product Raw Material Merchant Wholesalers
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 424590Sector: Wholesale Trade (42)Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 424590 draws on verified data from the U.S. Census Bureau[5], Bureau of Labor Statistics[7], and Small Business Administration[6] to profile the miscellaneous farm product raw material wholesale sector. Our research team analyzes commodity market dynamics 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 regulatory environment across diverse farm product categories. Fair Market Value updates this NAICS 424590 profile quarterly to reflect new Census releases and industry developments.
Industry Snapshot
Key metrics for the other farm product raw material merchant wholesalers industry.
Industry Definition & Overview
Other Farm Product Raw Material Merchant Wholesalers (NAICS 424590) encompasses establishments primarily engaged in the merchant wholesale distribution of farm products not classified in more specific agricultural wholesale categories. This code excludes grain and field beans (424510), livestock (424520), raw milk (424430), live poultry (424440), and fresh fruits and vegetables (424480). Product lines include raw cotton, leaf tobacco, hides and skins, raw furs, wool and mohair, hops, crude rubber, and various other unprocessed agricultural commodities.
Each product niche within this classification connects to distinct manufacturing supply chains. Cotton wholesalers supply textile mills and export markets. Leaf tobacco wholesalers serve cigarette and cigar manufacturers under tightly regulated federal and state licensing frameworks. Hide and skin dealers supply leather tanneries, while wool merchants connect sheep ranchers to textile processors. According to the U.S. Census Bureau[5], merchant wholesalers must take ownership title to qualify under this classification, separating them from brokers and commission agents who arrange transactions without taking possession.
The SBA[6] sets the size standard at 100 employees for this industry. Global commodity markets heavily influence pricing, as many products in this classification trade on international exchanges or through established export channels. USDA grading and classification standards apply to cotton, tobacco, and wool, creating quality-based pricing tiers. Seasonal harvest patterns create procurement cycles that require substantial working capital during buying periods, with inventory carried until sold to processors or exporters throughout the year.
What's Included in This Industry
- Wholesale distribution of raw cotton and cotton linters
- Distribution of leaf tobacco through merchant wholesale channels
- Wholesale of hides, skins, and raw furs
- Distribution of wool, mohair, and animal fibers
- Wholesale of hops for brewing and beverage production
- Distribution of crude rubber and natural latex products
- Wholesale of nursery stock and plant materials
- Distribution of seeds and planting stock for agriculture
- Wholesale of hay, straw, and other forage products
- Distribution of other unprocessed farm commodities
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 | Other Farm Product Raw Material Merchant Wholesalers | 42459 |
| National Industry | Other Farm Product Raw Material Merchant Wholesalers | 424590 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 424510 | Grain and Field Bean Merchant Wholesalers | Distributes grain and field beans through wholesale channels, representing the largest-volume farm product raw material category carved out from this general classification |
| 424520 | Livestock Merchant Wholesalers | Handles livestock wholesale distribution, another farm product raw material category with distinct handling, transportation, and regulatory requirements |
| 424910 | Farm Supplies Merchant Wholesalers | Distributes farm supplies including seeds, fertilizers, and equipment through wholesale channels, serving the same agricultural producer customer base |
| 424930 | Flower, Nursery Stock, and Florists' Supplies Merchant Wholesalers | Handles flower and nursery stock wholesale distribution, with product overlap in plant materials and nursery products also distributed under this code |
| 424940 | Tobacco Product and Electronic Cigarette Merchant Wholesalers | Distributes tobacco and tobacco products through wholesale channels, with upstream connection to the leaf tobacco distribution included in this classification |
| 424480 | Fresh Fruit and Vegetable Merchant Wholesalers | Handles fresh fruit and vegetable wholesale distribution, representing another agricultural product category excluded from this residual farm products code |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 24.9% | 272 |
| 2 | Texas | 8.7% | 95 |
| 3 | Florida | 6.1% | 67 |
| 4 | North Carolina | 5.0% | 55 |
| 5 | New York | 4.3% | 47 |
| 6 | Colorado | 3.9% | 43 |
| 7 | Georgia | 3.8% | 41 |
| 8 | Oregon | 3.4% | 37 |
| 9 | Michigan | 3.0% | 33 |
| 10 | Minnesota | 2.2% | 24 |
% Of Establishments
0%
25%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
48
Total SBA Loans
$89.6M
Total Loan Volume
$1.9M
Average Loan Size
8 yrs
Average Loan Term
9.79%
Average Interest Rate
560
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: The SBA[6] classifies NAICS 424590 under farm product raw material merchant wholesale trade with a size standard of 100 employees. Businesses at or below this threshold qualify as small for federal contracting preferences and SBA loan programs. Farm product wholesalers can access SBA 7(a) loans[8] for seasonal working capital needs during harvest procurement and for warehouse equipment upgrades. Firms purchasing storage or processing facilities may qualify for 504 loans[9]. Commodity-specific licensing requirements for tobacco and regulated agricultural products may affect loan documentation needs.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Synovus Bank | 8 | $40.0M | $5.0M |
| 2 | Regions Bank | 8 | $27.1M | $3.4M |
| 3 | GBank | 8 | $15.3M | $1.9M |
| 4 | CDC Small Business Finance Corp. | 8 | $2.8M | $350K |
| 4 | Newtek Bank, National Association | 8 | $2.8M | $350K |
Frequently Asked Questions
Common questions about this industry.
What types of businesses fall under NAICS 424590?
NAICS 424590 covers merchant wholesalers of farm products not classified elsewhere, including raw cotton, leaf tobacco, hides and skins, wool, hops, crude rubber, nursery stock, and other unprocessed agricultural commodities. Source: U.S. Census Bureau[5]
What is the SBA size standard for NAICS 424590?
The SBA sets the size standard at 100 employees for other farm product raw material 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 farm products are excluded from NAICS 424590?
Products with their own NAICS codes are excluded: grain and field beans (424510), livestock (424520), raw milk (424430), live poultry (424440), and fresh fruits and vegetables (424480). Each of these categories has distinct distribution requirements that warrant separate classification. Source: Census NAICS[5]
What NAICS codes are related to NAICS 424590?
Related wholesale codes include 424510 (grain), 424520 (livestock), 424910 (farm supplies), 424930 (nursery stock), and 424940 (tobacco products). Supply-side codes include 111920 (cotton farming), 111910 (tobacco farming), and 112410 (sheep farming). Source: Census NAICS[5]
How does tobacco wholesale distribution work under this code?
Leaf tobacco wholesale involves purchasing cured tobacco leaves from farmers and auction warehouses, grading and sorting by quality, and selling to cigarette and cigar manufacturers. Federal and state licensing requirements, USDA grading standards, and FDA tobacco regulations create a heavily regulated operating environment.
Can farm product wholesalers get SBA loans?
Yes, small businesses under NAICS 424590 can access SBA 7(a) loans for seasonal working capital and equipment, 504 loans for warehouse and storage facility purchases, and microloans for smaller needs. Commodity procurement financing during harvest seasons is a common funding purpose. Source: SBA Loan Programs[10]
How do global markets affect farm product wholesaling?
Many products in this classification trade on international commodity exchanges, making wholesale prices sensitive to global supply and demand, currency fluctuations, and trade policies. Cotton, hides, and crude rubber prices respond to worldwide production volumes and manufacturing demand cycles. Source: USDA[11]
What role does USDA grading play in this industry?
USDA grading standards for cotton, tobacco, and wool establish quality classifications that determine pricing tiers. Wholesalers must understand grading criteria to make accurate procurement decisions and price products appropriately for different end-use markets and customer quality requirements.
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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