Agriculture Production Costs Sharply Decline in 2015

Randall Weiseman Cattle, Field Crops, Livestock

U.S. farmers spent far less on agriculture production in 2015 compared to 2014, according to the Department of Agriculture’s National Agricultural Statistics Service.

A new report shows farmers spent $362.8 billion on agricultural production in 2015, down 8.8 percent from 2014, reversing a long-term trend of growing costs. Feed and farm services, the two largest expenditure categories for U.S. farmers in 2014 both declined 8.2 percent last year.

Producers spent $58.5 billion on animal feed and $41.6 billion on farm services in 2015. One of only two expenditure categories that increased last year was livestock, poultry and related expenses, on which the producers spent $45.4 billion last year, an increase of 0.7 percent from 2014. The other was miscellaneous capital expenditures at $700 million, an increase of 16.7 percent.

Livestock producers spent $182.6 billion, down 6.6 percent from 2014. Crop growers spent $180.3 billion, down 10.9 percent from 2014. Per farm, the average expenditures total was $176,181 compared with $191,500 in 2014, down 8.0 percent.

(From the National Association of Farm Broadcasters News Service)