According to a recent press release, 2013 Farm Production Expenditures in the United States are estimated to be $367.3 billion, showing a 2 percent increase in farm spending from the previous year.
The Farm Production Expenditures report, issued by the U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS), annually estimates farmer production spending. The average expenditure per farm, up 2.3 percent, totaled $175,270 in 2013 compared with $171,309 in 2012. The average spending per crop farm totaled $211,659 compared to $143,521 per livestock farm.
Almost all expenditure matters are up from 2012. The four largest expenditures in the United States, totaling $167.6 billion, account for 45.6 percent of total expenditures in 2013. These items include feed (17.0 percent), farm services (10.6 percent), livestock, poultry and related expenses (9.3 percent), and labor (8.7 percent).
The Midwest experienced the largest increase in production expenditures. This region already made up the majority of all farm production expenditures in the United States. The Midwest region spent $3.7 billion more than the previous year. In 2013, total expenditures by region are as follows: Midwest with $118.5 billion, Plains with $87.6 billion, West with $76.9 billion, Atlantic with $45.5 billion, and South with $38.8 billion.
Christopher Doering, reporter at The Des Moines Register, explains that low interest rates and record-high grain prices have provided farmers with cash they have used to buy agriculture equipment and land. However, with a decrease in corn and soybean prices, significant crops grown in the Midwest, some farmers worry land prices will also experience a large drop.
The Farm Production Expenditures summary provides official estimates for production input costs on United States farms and ranches. These conclusions are based on the results of the nationwide Agricultural Resource Management Survey (ARMS), which is also conducted yearly by NASS.