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

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Cost of Farming Went Down in Wisconsin Last Year
Wisconsin Ag Connection - 08/06/2019

The cost of running an average-sized farm operation in Wisconsin last year went down a bit compared to 2017. New figures from the U.S. Department of Agriculture show that total state farm production expenditures were estimated at $10.1 billion in 2018. That's 12 percent less than last year.

Feed costs represented the largest single production expense for Wisconsin farmers at $1.79 billion, though that category was down seven percent for the year. Farm services, the second largest expense, totaled $1.40 billion--about 12 percent lower than the year previous.

Ag economists say most of the areas on the expense column fell on the annual report, with the largest category decrease found in farm improvements and construction, which dropped by more than half from the year earlier.

Other decreases were found in livestock, rent, lime and chemicals, fertilizer, tractors and other farm machinery, seed and trucks. However, interest, taxes, fuel and farm labor did cost farmers more money last year.

By the numbers, expenditures per Wisconsin farm averaged $155,093 in 2018, compared with $176,312 the previous year. The average operation spent $27,623 on feed, $21,605 on farm services, $10,185 on fertilizer, and $17,130 on labor.

Nationally, farm production expenditures totaled $354 billion in 2018, down one percent. Expenditures per U.S. farm averaged $175,169 last year, compared with $175,935 in 2017. On average, American farms spent $26,622 on feed, $22,911 on livestock, poultry and related expenses, $21,822 on farm services, and $16,775 on labor.

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