Agri-Inputs Sector Update – October 2025

Agri-Inputs Sector Update: Relief Should be on the Way

Capstone Partners’ inaugural Agriculture Inputs (Agri-Inputs) Sector Update reports that merger and acquisition (M&A) activity in year-to-date (YTD) 2025 has paced the prior year period as macroeconomic pressure related to elevated input costs and geopolitical volatility have continued to weigh on sector operating conditions and end market demand.

Already grappling with rising prices due to the higher-for-longer interest rate and inflationary environment, upward pressure on select crop inputs, largely fertilizers, has continued to push farm production costs up while revenue has lagged. Moreover, falling commodity crop prices following recent yield surpluses have added to the financial strain on crop farms, particularly corn growers. Headwinds from recent geopolitical conflicts and new tariff rates have created additional volatility, disrupting production and pricing dynamics for sector participants, both for agri-input exports and raw material imports. Difficult operating conditions have weighed on end market demand and farm-level spending power for crop input products and solutions, with many growers trading down to more affordable alternatives in an attempt to control costs and salvage profit margins. At the same time, farm operators have continued to seek out affordable next-generation and innovative agri-inputs products, services, and solutions to boost crop yields and quality. Solutions like biologicals and hybrid seed strains have offered growers new alternative methods to maximize production harvests. Despite headwinds, ongoing trade negotiations, expectations for increased farm aid, and the potential for additional interest rate cuts should help improve farm-level spending power. These factors have modestly buoyed Agri-Inputs sector outlook and growth expectations for 2026.

Also included in this report:

• A breakdown of segment activity for key agri-inputs verticals including, Animal Feeds, Crop Protection Chemicals & Biologicals, Fertilizer & Soil Additives, Machinery & Equipment, and Seeds.
• A review of sector M&A activity to date, including buyer activity and M&A pricing.
• An analysis of Agri-Inputs sector pricing and cost dynamics.
• A deep dive into Fertilizer Segment fundamentals and recent deal activity.

Capstone Partners’ Agriculture Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the Agri-Inputs sector. Our team partners with leading mid-to-large sized consumer businesses that serve growing end-markets. For more Agri-Inputs M&A analysis like that featured in this report or to speak with one of our Agriculture Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.