August 3, 2022

 

Average US farm expenditure on production increased 7% last year

 

 

The average farmer in the United States spent almost US$14,000 more on production in 2021 — a jump of 7% from the previous year, according to a new report from the United States Department of Agriculture's National Agricultural Statistics Service (NASS).

 

Average per-farm production expenditures were US$196,087 last year.

 

Farmers spent an average of US$32,540 on feed, US$21,161 on livestock, poultry, and related expenses, US$22,458 on farm services and US$18,366 on labor in 2021.

 

Farmers felt the effects of increasing fuel prices — even before the record-high numbers recorded in 2022. According to the NASS report, diesel expenditures were up 18.6%, gasoline spending rose by 22.7%, and LP gas climbed 11.6%.

 

Crop farm expenditures grew to a total of US$207.6 billion nationally — up 6.2% — while livestock farm spending totals increased to US$185.3 billion, up 8.5%.

 

The largest expenditures for crop farms are labor (12.2% of total), farm services, (13%) and rent — which totaled US$27.3 billion (13.2%).

 

For livestock farms, the largest expenditures are feed (34.2% of total); livestock, poultry and related expenses (21.6%); and farm services (9.7%). Together, these line items account for more than 65% of livestock farms total expenses.

 

The average total expenditure for a crop farm was US$219,593 compared to US$175,092 per livestock farm in 2021.

 

Accounting for nearly 32% of all farm expenditures in the US, the Midwest region accounted for US$124.9 billion in farm spending, up from US$112.8 billion in 2020.

 

Other regions, ranked by total expenditures, are the Plains at US$99.2 billion (25.2% of US total), West at US$86.7 billion (22.1%), Atlantic at US$42.9 billion (10.9%) and South at US$39.2 billion (10%).

 

- Michigan Farm News

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