BETTING THE FARM: Private Equity Buyouts in US Agriculture

The report argues that the private equity model of high leverage and short-term profit maximization is ill-suited for the US agricultural industry, which is characterized by fluctuating margins and a vulnerable migrant workforce. It highlights a trend of consolidation, citing that two private equity-owned firms control a majority of US fresh carrot production. The document details several case studies of bankruptcy and labor abuse, including Prima Wawona, Trinitas Farming, Windmill Farms, and Grimmway Farms. It further notes that the industry's reliance on H-2A visas and exemptions from the National Labor Relations Act exacerbates worker vulnerability, a situation further complicated by the Trump administration's mass deportation policies.

• Private equity firms have significantly increased their presence in US agriculture, with 129 deals in horticulture and cultivation occurring between January 2018 and December 2023. This consolidation is evident in the carrot market, where Grimmway Farms (owned by Teays River Investments) and Bolthouse Farms (owned by Butterfly Equity) together "control a majority of fresh carrot production in the US as of 2023."
• The traditional private equity business model, which utilizes high levels of debt to quickly increase profitability, is described as "ill-suited" for agriculture due to the industry's inherent volatility in land, gas, fertilizer, water, commodity prices, and labor costs.
• Private equity ownership has been linked to high-profile bankruptcies. Prima Wawona, formed by Paine Schwartz Partners in 2019, entered bankruptcy by October 2023, leading to layoffs of 5,000-10,000 employees. Similarly, Trinitas Farming, owned by Trinitas Partners, declared Chapter 11 bankruptcy in February 2024, burdened by $188 million in debt.
• Private equity-owned farms have faced severe labor and safety violations. Windmill Farms (owned by Instar Asset Management) was fined by the US Department of Labor in August 2023 for failing to pay required wages and lacking cooking facilities for H-2A workers. Grimmway Farms has been fined over $59,000 by Federal OSHA for seven violations, including three involving worker deaths.
• Agricultural workers in the US are uniquely vulnerable due to legal exclusions from the National Labor Relations Act and exemptions from the Fair Labor Standards Act, which allow children to be hired starting at age 12. This vulnerability is compounded by the H-2A visa system, where visas are tied to a single employer.
• The Trump administration's focus on mass deportations poses a significant risk of severe labor shortages for the agricultural industry, as the workforce is largely composed of undocumented workers or those on H-2A visas.

APA

Private Equity Stakeholder Project (2025). BETTING THE FARM: Private Equity Buyouts in US Agriculture. https://pestakeholder.org/wp-content/uploads/2025/03/PESP_Report_Agriculture_2025.pdf

Chicago

Private Equity Stakeholder Project. BETTING THE FARM: Private Equity Buyouts in US Agriculture. 2025. https://pestakeholder.org/wp-content/uploads/2025/03/PESP_Report_Agriculture_2025.pdf.

Wikipedia

{{cite report |author=Private Equity Stakeholder Project |title=BETTING THE FARM: Private Equity Buyouts in US Agriculture |date=March 2025 |url=https://pestakeholder.org/wp-content/uploads/2025/03/PESP_Report_Agriculture_2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{privateequitystakeholderproject2025betting, author = {{Private Equity Stakeholder Project}}, title = {{BETTING THE FARM: Private Equity Buyouts in US Agriculture}}, institution = {Private Equity Stakeholder Project}, year = {2025}, month = mar, url = {https://pestakeholder.org/wp-content/uploads/2025/03/PESP_Report_Agriculture_2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }