2016 farm production expenditures down over 4%2016 farm production expenditures down over 4%

Farm production expenditures in the United States were $346.9 billion in 2016, down from $362.8 billion in 2015. The 2016 Total Expenditures  are  down  4.4%  compared  with  2015  total  farm  production  expenditures.  All  but  five  expenditure  items  decreased from the previous year.

The four largest expenditure categories at the U.S. level totaled $171.4 billion and account for 49.3% of total expenditures in 2016. These include feed, 16%; farm services, 12%; livestock, poultry and related expenses, 11.5%; and labor, 9.8%.

In 2016, the U.S. total farm expenditure average per farm was $169,035, down 4.1% from $176,181 in 2015. On average, U.S. farm operations spent $27,092 on feed; $19,491 on livestock, poultry and related expenses; $20,319 on farm services; and $16,616 on labor. For 2015, U.S. farms spent an average of: $28,408 on feed; $20,202 on farm services; $22,047 on livestock, poultry and related expenses; and $15,443 on labor. 

The U.S. economic sales class contributing most to the 2016 U.S. total expenditures was the $1 million to  $4.9 million, with expenses of $113 billion, (32.6% of the U.S. total), down 5.2% from the 2015 level of $119.2 billion. It was followed by the $5 million and over class with $80.6 billion, down from $81.3 billion in 2015. 

The Midwest region, which includes Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin, contributed the most to U.S. total expenditures with expenses of $108.9 billion (31.4%), down from $113.1 billion in 2015. The other regions ranked by total expenditures were: Plains at $89 billion (25.7%), West at $71.4 billion (20.6%), Atlantic at $42.1 billion (12.1%) and South at $35.5 billion (10.2%). The Plains decreased $4.5 billion from 2015, which is the largest regional decrease.

For further information on USDA farm expenditures, go online.

Source: USDA