Farming Production Costs And Farmland Values Increase
U.S. farmers spent $367.3 billion on agricultural production in 2013, a 2.0% increase from 2012, according to the Farm Production Expenditures report, published by USDA’s National Agricultural Statistics Service (NASS).
Per farm, the average expenditures total $175,270 compared with $171,309 in 2012, up 2.3%. Crop farms account for the majority of production expenditures in 2013. The average expenditure per crop farm totaled $211,659 compared with $143,521 per livestock farm.
Regionally, the largest increase in production expenditures was in the Midwest, which already accounted for nearly all farm production expenditures in the U.S. In that region, expenditures rose by $3.7 billion from 2012. For 2013, total expenditures by region are:
- Midwest: $118.5 billion
- Plains: $87.6 billion
- West: $76.9 billion
- Atlantic: $45.5 billion
- South: $38.8 billion
The Farm Production Expenditures summary provides the official estimates for production input costs on U.S. farms and ranches. These estimates are based on the results of the nationwide Agricultural Resource Management Survey (ARMS), conducted annually by NASS. The Farm Production Expenditures 2013 summary is available online.
Farm Land Values Climb Up
NASS also released the 2014 Land Values report, which includes estimates based on interviews with approximately 11,000 farmers. This report looks at the U.S. farm real estate value, which measures the value of all land and buildings on farms.
In 2014, U.S. farm real estate value averaged $2,950 per acre for 2014, up 8.1% from 2013. Regional changes in the average value of farm real estate ranged from a 16.3% increase in the Northern Plains region to 1.1% increase in the Southeast region. The highest farm real estate values were in the Corn Belt region at $6,370 per acre. The Mountain region had the lowest farm real estate value at $1,070 per acre.
The U.S. pasture value increased to $1,300 per acre, or 11.1% above 2013. The Southeast region had the smallest percentage increase in pasture value, 0.5% above 2013. The Northern Plains had the highest increase at 26.5%. At the state level, the value of 2014 pasture land ranged from $360 per acre in New Mexico to $13,500 in New Jersey.
Source: NASS news release