Wisconsin Ag Connection - Cost of Farming Went Up in Wisconsin Last Year

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Cost of Farming Went Up in Wisconsin Last Year
Wisconsin Ag Connection - 08/02/2021

The cost of running an average-sized farm operation in Wisconsin went up a bit last year compared to 2019. New figures from the U.S. Department of Agriculture show that total state farm production expenditures were estimated at $10.8 billion in 2020. That's three percent more than a year earlier.

Feed costs represented the largest single production expense for Wisconsin farmers at $2.28 billion, which also rose six percent from the previous year. Farm services, the second largest expense, totaled $1.48 billion--about one percent higher than the year prior.

Ag economists say most of the areas on the expense column rose on the annual report. Besides feed costs and farm services, other increases were found in chemicals, fertilizer, property taxes, farm machinery, and automobiles. However, livestock, rent, interest, labor, and fuel were lower for the year.

By the numbers, expenditures per Wisconsin farm averaged $167,935 in 2020, compared with $162,558 the previous year. The average operation spent $35,404 on feed, $22,981 on farm services, $11,8.1 on fertilizer, and $15,062 on labor.

Nationally, farm production expenditures totaled $366.2 billion in 2020, up two percent. Expenditures per U.S. farm averaged $182,130, up 2.6 percent from $177,564 in 2019. On average, American farms spent $28,250 on feed, $19,695 on livestock, poultry, and related expenses, $22,232 on farm services, and $18,253 on labor.

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