NAICS 4245 - Farm Product Raw Material Merchant Wholesalers
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What is NAICS 4245
NAICS code 4245, Farm Product Raw Material Merchant Wholesalers, encompasses businesses primarily engaged in the wholesale distribution of agricultural raw materials excluding raw milk, live poultry, and fresh fruits and vegetables. These establishments deal mainly in commodities such as grains, field beans, livestock, and other farm product raw materials excluding seeds. Companies in this sector act as intermediaries, purchasing large quantities of farm products from producers and selling them to manufacturers, processors, and other businesses requiring bulk agricultural inputs. Government agencies contract with these wholesalers to ensure a steady and reliable supply of essential agricultural commodities needed for various programs, including food assistance, research, and agricultural support initiatives. The efficiency and scale of these wholesalers support government objectives to maintain food security and support the agricultural economy.
Industry Classification for NAICS 4245
This industry group comprises establishments primarily engaged in the merchant wholesale distribution of agricultural products (except raw milk, live poultry, and fresh fruits and vegetables), such as grains, field beans, livestock, and other farm product raw materials (excluding seeds).
Breakdown for NAICS 4245
- Covers merchant wholesale distribution of agricultural raw materials excluding fresh fruits, vegetables, live poultry, and raw milk.
- Includes commodities such as grains, field beans, livestock, and other farm products excluding seeds.
- Businesses primarily act as intermediaries between agricultural producers and manufacturers/processors.
- Subject to federal and state government contracting for food assistance, research, and emergency supply purposes.
- Typical contract values range from tens of thousands to several million dollars annually.
- Includes firm-fixed-price and IDIQ contract types with competitive procurement methods.
Included Activities for NAICS 4245
- Purchasing and wholesaling bulk grains and field beans from agricultural producers.
- Distributing livestock feedstock and other farm product raw materials to manufacturers.
- Managing inventory and logistics for large-scale agricultural commodity shipments.
- Coordinating with government agencies for contract fulfillment and compliance.
- Ensuring quality control and traceability of agricultural raw materials.
- Responding to government solicitations and participating in competitive bidding.
- Providing emergency supply support for government food assistance programs.
- Maintaining certifications and regulatory compliance for agricultural products.
Business Types for NAICS 4245
- Agricultural commodity wholesalers
- Farm product distribution companies
- Bulk grain and feedstock merchants
- Agricultural supply chain intermediaries
- Government contract suppliers specializing in farm products
- Agricultural cooperatives involved in raw material wholesaling
Government Buyers for NAICS 4245
Government buyers for NAICS 4245 typically include the U.S. Department of Agriculture (USDA), Department of Defense (DoD), and state-level agricultural agencies. These agencies require farm product raw materials for purposes such as food distribution programs, research into agricultural practices, livestock feedstock, and emergency food reserves. The USDA often procures grains and related commodities to support nutrition assistance programs and to stabilize agricultural markets. The DoD may acquire these products for troop sustenance or logistical support in training and deployment scenarios. State agencies rely on these wholesalers to support local agricultural initiatives and disaster preparedness efforts.
Contract Types & Procurement for NAICS 4245
Contracts within this NAICS code commonly include firm-fixed-price and indefinite delivery/indefinite quantity (IDIQ) contracts to allow flexibility in supply volumes. Procurement methods often involve competitive bidding, simplified acquisitions, and government purchase card transactions, depending on contract value and urgency. Typical contract values range from tens of thousands to several million dollars annually, reflecting the large-scale nature of agricultural commodity purchases. Long-term supply contracts are common to ensure consistent availability, while spot purchases may address immediate or seasonal needs. Government contracts emphasize compliance with quality standards, timely delivery, and traceability of agricultural products.
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