Agri-Inputs Sector Update – September 2026

Agri-Input Sector Targets Product Innovation and Domestic Supply Sources

Capstone Partners’ latest Agri-Input Sector Update, reports that merger and acquisition (M&A) activity has risen year-over-year (YOY) as buyers have maintained inorganic growth strategies in response to geopolitical events, which have caused supply disruptions, increased costs, and end-market demand disruptions.

Increased government aid and interest rate cuts were supposed to ease stress across the Agriculture Input (Agri-Input) sector and improve downstream demand. Instead, fertilizer and fuel shortages following the onset of the Iran conflict have dramatically increased upward pressure on input costs. The recent increases have added to pre-existing financial pressures from low commodity crop prices and an already inflated input expense landscape. This environment has encouraged agri-input substitution and trade downs to lower-cost, alternative solutions to balance price and yield. Fertilizer purchasing trends have reflected this dynamic as growers have attempted to avoid surging costs for select soil nutrients with raw ingredient supply chains exposed to the Iran conflict. Overall, agri-input sector demand is tied to farm profitability, which in turn depends on global input cost moderation and higher commodity crop prices. Corn and soybean price improvement and expectations for more federal aid have uplifted underlying sector dynamics to date; however, Capstone anticipates interest rate hikes and production disruptions from global events to continue to depress near-term Agri- Input sector growth prospects.

Agri-Input sector M&A has remained strong through year-to-date (YTD) 2026 as acquirers have maintained inorganic growth strategies despite ongoing pressures to end-market demand. To date, sector deal volume has risen 27.5% YOY to 65 transactions announced or closed. Acquisitions targeting crop input providers have represented the bulk (46.2%) of this activity, as acquirers have looked to capitalize on domestic fertilizer demand, chemical portfolio realignments, and emerging categories like Biologicals. Innovation in autonomous and drone spraying technology has helped accelerate M&A targeting machinery and equipment businesses (+15 deals YOY). Animal feed transactions have likewise increased (+six deals YOY) due to strong protein demand and increased merger activity among agricultural cooperatives seeking to mitigate margin pressures and compete against scaled competitors. Agri-Input sector revenue M&A multiples have averaged 2.4x EV/Revenue between 2024-YTD 2026, trailing the 2.8x average from 2022 to 2023. Despite end-market demand pressures to revenue and margins, the average EV/EBITDA multiple has expanded from 8.9x to 12.0x over the same period. This suggests buyers are willing to pay premiums for product innovation and domestic manufacturers to cope with global stock shortages. This trend is likely to continue as geopolitical uncertainties persist.

Also included in this report:

• An overview of agri-input pricing activity and related production expense trends for farmers.
• An analysis of Fertilizer segment operational and M&A activity as well as the impacts of recent geopolitical volatility.
• A breakdown of public company updates across the Animal Feed, Crop Protection Chemical, Fertilizer, Machinery & Equipment, and Seed segments.

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.