USDA reports on production expenses

Farm and Ranch August 8, 2011 In 2009 U. S. farm production expenses actually went down, but according to a new USDA report;

Hintzman: “In 2010 farm expenses began to increase again.”

But USDA statistician Kevin Hintzman says not much of an increase last year, less than one percent to a total of 289-billion dollars. In nine western states, including those in the Pacific Northwest, expenses were actually slightly lower again in 2010, at 63.6 billion.

There were some things U. S. farmers spent a lot more on last year.

Hintzman: “Machinery. Farmers purchased about 17% more machinery in value. Rent. Rents have increased dramatically especially in the Midwest. That was up about 15%. And then all your fertilizers, fuels, things of that nature up dramatically.”

But overall in 2010 farm expenses were only up six-tenths of a percent. According to USDA crop farmer expenses were actually down in 2010.

Glauber: “That is very good news for farmers but we still have very high expenses.”

For livestock producers, USDA chief economist Joe Glauber says expenses were up 1.3 percent last year mostly due to a sixteen percent hike in feed costs.

Glauber: “That’s about 16% of total costs are in feed.”

I’m Bob Hoff and that’s the Northwest Farm and Ranch Report on Northwest Aginfo Net.