Agriculture M&A
Thinking about selling your agribusiness?
Feedlots, equipment dealers, elevators, and feed and supply companies are built over decades, and buyers look closely at the permits, agreements, and relationships behind them. We help owners understand what buyers pay for, and run a confidential sale when the time is right.
- Of fed cattle marketed in 2025 came from feedlots with 1,000 or more head of capacity
- 87.1%[1]
- Those feedlots are about 8% of the total: 2,082 of 26,082 (computed)
- Farm equipment, farm supply, grain, feed, storage, and ag service establishments
- 33,277[3]
- 2023, seven industries combined (computed): about 399,500 employees, 85% with fewer than 20; establishments, not companies
The agribusiness market in brief
Cattle feeding is concentrated. Feedlots with 1,000 or more head of capacity marketed 87.1% of fed cattle in 2025, and the 82 largest lots, each with 50,000 or more head of capacity, marketed about 36% (computed). USDA notes that cattle feeding operations are concentrated in the Great Plains region, and on January 1, 2026, Nebraska, Texas, and Kansas had about 2.8 million, 2.5 million, and 2.5 million head on feed in feedlots of all sizes.[1],[2]
Most establishments serving farms and ranches are small. In 2023 Census counted 7,500 farm and garden equipment wholesale establishments, the category that includes farm equipment dealers, along with 9,322 farm supply wholesalers, 4,407 grain wholesalers, including country and terminal elevators, and 1,463 animal feed manufacturers. Across those and the farm service and storage industries, 85% of establishments had fewer than 20 employees (computed).[3]
Farm income shapes demand for equipment, feed, and supplies. USDA estimates U.S. net farm income at $162.6 billion in 2025, up from $128.3 billion in 2024, and that total included $27.9 billion in direct government payments, up from $10.1 billion.[4]
We know the Texas Panhandle and the Great Plains, and we serve agricultural operations from Kansas to New Mexico, including multi-state transactions. We work with operations of all sizes, from family farms to large commercial feedlots.
What buyers pay for in an agribusiness
Earnings matter, but buyers look closely at the assets, permits, and relationships that keep them coming.
Location, permits, and capacity
Feedlot, elevator, and mill capacity in the right place, with permits in good standing, is hard for a buyer to build from scratch.
Agreements that transfer
Equipment dealer agreements, supply contracts, and feeding arrangements that will carry over to a new owner protect the revenue a buyer is paying for.
Loyal grower and producer customers
Long relationships with growers and producers, and a history of repeat business, give a buyer confidence the volume will stay.
Parts, service, and recurring revenue
Parts and service at a dealership, custom feeding, and service contracts generally hold up better than one-time sales when commodity prices fall.
Storage and logistics
Storage capacity, rail access, and trucking give elevators and feed businesses an edge buyers value.
A team below the owner
Managers who run daily operations and know the customers are much of what a buyer is acquiring.
What gets discounted when you sell an agribusiness
Buyers price these risks into the number or into the deal structure.
Commodity and weather swings
Earnings that rise and fall with prices and weather, with no hedging discipline, are weighed more cautiously.
One relationship carrying the business
Reliance on one packer, one manufacturer, or one large customer leaves revenue exposed to that relationship.
Permit or environmental problems
Open issues with feedlot, water, or environmental permits draw close review and can delay closing.
Large working capital swings
Seasonal inventory and receivables make the working capital delivered at closing a frequent point of negotiation.
Land tangled with the business
Land held personally or mixed into the operating company complicates a sale and needs a clear plan for a lease or a separate sale.
Owner-held relationships
If the owner holds every customer and supplier relationship, a buyer has to plan for those leaving.
Who buys agribusinesses
Each type of buyer values the assets, agreements, and customer relationships differently. Reaching more than one is generally how an owner learns what the company is worth.
Strategic agribusinesses
Larger dealer groups, feed and grain companies, and cooperatives adding locations, capacity, or customers.
Looks for: Locations that fit their network, agreements that transfer, and customers in markets they want.
Agriculture-focused investors
Private equity firms and family offices that invest in agribusiness, often keeping local management in place.
Looks for: Steady earnings through a cycle, a strong team, and room to grow.
Neighbors, family, and management
Nearby operators, the next generation, or the management team, sometimes with outside financing.
Looks for: A business they already know and a structure that fits their finances.
Agribusiness due diligence: what to prepare
These are the records buyers ask for first. Owners who gather them before going to market generally move faster and face fewer late surprises.
| Record | What buyers expect to see |
|---|---|
| Dealer and supply agreements | Manufacturer dealer agreements, supply and feeding contracts, and their change-of-control terms. |
| Permits | Feedlot, water, and environmental permits, with inspection history. |
| Seasonal working capital | Inventory and receivables by month across several years. |
| Facilities and equipment | Capacity, condition, and maintenance history for pens, bins, mills, and rolling stock. |
| Land and leases | How land and buildings are owned and leased, and what a buyer needs to operate. |
| Financial statements | Several years of statements with owner compensation and personal expenses reconciled. |
Questions owners ask about selling an agribusiness
How is an agribusiness valued?
Value generally depends on earnings through a full cycle and what supports them: capacity, permits, agreements that transfer, customer relationships, and how much of the business runs without the owner. Two companies with similar revenue can be valued very differently once a buyer looks at commodity exposure and working capital. A review of several years of results is usually the starting point.
What happens to land and real estate when I sell?
Land is often handled separately from the operating company. An owner may sell it with the business, keep it and lease it to the buyer, or sell it on its own. Each path has different tax and estate consequences, so it helps to decide early, with tax and legal advisors, how the land and the business will be offered.
Do I need the manufacturer’s approval to sell an equipment dealership?
Usually, yes. Dealer agreements typically require the manufacturer to approve a change in ownership, and the manufacturer may review the buyer’s finances and experience. Reading the agreement early, and planning when to involve the manufacturer, helps keep the sale on schedule and avoids surprises after a buyer is chosen.
How do commodity prices affect selling an agribusiness?
Commodity prices shape farm income, which shapes demand for equipment, feed, and supplies. Buyers typically look at results across several years rather than one strong or weak season. Businesses with recurring revenue, such as parts, service, or custom feeding, generally hold up better when prices fall, and that steadiness tends to give buyers more confidence.
Who buys agribusinesses?
Buyers typically include larger dealer groups, feed and grain companies, and cooperatives; private equity firms and family offices that invest in agriculture; and neighbors, family members, or managers. Each values the assets, agreements, and customer relationships differently, so a sale process that reaches more than one type of buyer generally shows what the company is worth.
How do you keep a sale confidential in a farming community?
Word travels fast in rural markets, and rumors can unsettle employees, customers, and lenders. A confidential process typically shares the company’s name only with buyers who have signed a nondisclosure agreement, keeps site visits discreet, and tells employees at the right time, usually late in the process. That protects relationships while buyers are evaluated.
Related reading
- Agriculture M&A advisory
More on selling an agribusiness.
- Family business succession planning
Planning the handoff to the next generation or a buyer.
- Private equity or strategic buyer?
How the two kinds of buyers differ.
- Equipment Rental M&A
Construction, heavy, and specialty equipment rental.
Sources
- [1] USDA National Agricultural Statistics Service, Cattle on Feed: Feedlots, Inventory, and Marketings by Size of Feedlot, 2024 and 2025; All Cattle on Feed by State, January 1, February 20, 2026. View source
- [2] USDA Economic Research Service, Cattle & Beef: Sector at a Glance, Updated May 22, 2025. View source
- [3] U.S. Census Bureau, County Business Patterns: 2023, NAICS 1151, 1152, 311119, 423820, 424510, 424910, and 493130, 2025 release (2023 data). View source
- [4] USDA Economic Research Service, Farm Income and Wealth Statistics: U.S. Farm Sector Financial Indicators, 2019 to 2026F, September 3, 2026 (2025 estimates). View source
- [5] USDA National Agricultural Statistics Service, 2022 Census of Agriculture Highlights: Farm Producers, February 2024. View source
- [6] USDA National Agricultural Statistics Service, 2022 Census of Agriculture Highlights: Cattle and Cattle on Feed, December 2024. View source