Wholesale distribution of grain, beans, and field crops for USDA commodity programs and food aid. Find active federal and state grain and field bean merchant wholesalers contracts — AI-scored against your profile across SAM.gov and 200+ portals.
Annual federal spend under NAICS 424510 is estimated at $300-500 million, driven primarily by USDA commodity procurement for international food aid (Food for Peace) and domestic nutrition programs. The market is moderately competitive, with a mix of large multinational grain traders and regional cooperatives. Contracts are typically structured as firm-fixed-price indefinite-delivery indefinite-quantity (IDIQ) or blanket purchase agreements (BPA) with multiple awardees. Demand spikes during emergency food crises and harvest cycles. USDA's Agricultural Marketing Service and Farm Service Agency are the dominant buyers, often issuing solicitations for specific commodities (e.g., wheat, corn, soybeans, lentils) with delivery terms requiring rapid turnaround to ports or processing facilities.
These agencies are the largest buyers of grain and field bean merchant wholesalers services and products in the federal government. Each awards contracts under NAICS 424510 regularly — build relationships with their small business offices first.
To win in 424510, focus on USDA's preference for small business set-asides under the 8(a) and HUBZone programs, which are commonly used for commodity purchases. The single highest-leverage move is to obtain a USDA Commodity Procurement Services (CPS) vendor number and register for the USDA's Web-Based Supply Chain Management (WBSCM) system—this is mandatory for bidding. Build relationships with USDA contracting officers at Agricultural Marketing Service (AMS) and Farm Service Agency (FSA). Emphasize your ability to source and deliver specific grades and quantities on tight timelines. Many awards go to firms with proven performance in Food for Peace programs, so past performance in international logistics is a differentiator.
Most grain procurement is via USDA-specific IDIQ contracts and BPAs, not GSA Schedule. Solicitations are typically lowest-price technically acceptable (LPTA) with strict adherence to commodity grade and delivery terms. USDA's Commodity Procurement Program uses WBSCM for solicitations and awards. Some contracts are awarded through the Defense Logistics Agency (DLA) for military food aid, but USDA is the primary buyer.
You need a USDA Commodity Procurement Services (CPS) vendor number, which requires registration in SAM.gov and the Web-Based Supply Chain Management (WBSCM) system. No specific grain broker license is required, but you must comply with USDA's commodity specifications and inspection requirements.
Yes, for contracts exceeding $150,000, USDA typically requires a performance bond (usually 100% of contract value) and may also require a payment bond. For smaller awards, a bid guarantee (5-20% of bid amount) is often required.
USDA frequently uses 8(a), HUBZone, and Service-Disabled Veteran-Owned Small Business (SDVOSB) set-asides for commodity procurement. Women-Owned Small Business (WOSB) set-asides are less common but possible. Check FedBizOpps (SAM.gov) for each solicitation's set-aside designation.
Competition varies by commodity and region. For standard commodities like wheat and corn, competition is high with 10-20 bidders per solicitation. For specialty beans (e.g., lentils, chickpeas) or organic grains, competition is lower (3-5 bidders). Small businesses often win on price and past performance.
Awards range from $50,000 for small regional deliveries to $10 million+ for large Food for Peace shipments. Most IDIQ orders fall between $250,000 and $2 million. The average delivery order under a BPA is around $500,000.