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Serving: MN

Minnesota farm expenditures rise in 2021

Willard/Getty Images Corn field and barn on rolling hills in late summer sunlight
BIG MACHINERY INVESTMENT: According to the July Farm Production Expenditures 2021 Summary, Minnesota farmers invested $21,513 per farm in tractors and self-propelled farm machinery. That compared to $8,444 in 2020 per farm.
Expenditures for livestock and poultry, however, were down 3%.

Minnesota’s total farm production expenditures for 2021 are estimated at $20.2 billion, according to the USDA National Agricultural Statistics Service-Farm Production Expenditures 2021 Summary report. This was $2.26 billion above the 2020 total expenditures. Livestock, poultry and related expenses in 2021 were down 3% at $1.54 billion.

Feed expense, up 36% to $3.69 billion, represented the largest single production expense in Minnesota in 2021, accounting for 18% of the total. Rent, up 2% to $2.06 billion, was the second-largest expense and accounted for 10% of total expenditures. Farm services was down 8% to $1.93 billion and accounted for 10% of the total.

The largest percentage increases from last year were in the categories of tractors and self-propelled farm machinery (up 154%), miscellaneous capital expenses (up 125%), and feed (up 36%).

The largest percentage decreases from last year were for interest (down 18%), farm services (down 8%) and farm improvements (down 4%).

In 2021, the average total farm production expenditures per Minnesota farm totaled $299,258, up 12% from 2020.

On average, a Minnesota farm in 2021 spent $22,849 on livestock, poultry and related expenses; $54,748 on feed; $28,635 on farm services; $30,564 on rent; $12,463 on agricultural chemicals; $25,964 on fertilizer, lime and other soil conditioners; $11,869 on labor; $9,644 on fuel; $15,430 on farm supplies and repairs; $10,979 on farm improvements and construction; and $21,513 on tractors and self-propelled farm machinery.

The Midwest region (Illinois, Indiana, Iowa, Minnesota, Missouri and other Midwest states) contributed the most to United States total expenditures, with expenses of $124.9 billion (32%), up from $112.8 billion in 2020.

National highlights

Farm production expenditures in the U.S. are estimated at $392.9 billion for 2021, up from $366.2 billion in 2020. The 2021 total farm production expenditures are up 7% compared with 2020 total farm production expenditures. For the 17-line items, fifteen showed an increase from previous year, while two showed a decrease. The four largest expenditures at the U.S. level total $189.4 billion and account for 48.3% of total expenditures in 2021. These include feed, 16.6%; farm services, 11.5%; livestock, poultry and related expenses, 11%; and labor, 9%.

In 2021, the U.S. total farm expenditure average per farm is $196,087, up 8% from $182,130 in 2020. On average, U.S. farm operations spent $32,540 on feed; $21,161 on livestock, poultry and related expenses; $22,458 on farm services; and $18,366 on labor.

Diesel expenditures are up 19% from the previous year; gasoline, up 23%; LP (liquefied petroleum) gas, up 12%.

See the publication at USDA Library Cornell University publication.

 

 

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