Wisconsin Ag Connection - Cost of Farming in Wisconsin Hits Another Record High

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Cost of Farming in Wisconsin Hits Another Record High
Wisconsin Ag Connection - 08/05/2015

The cost of running an average-sized farm operation in Wisconsin was up for the fourth consecutive year in 2014. According to the USDA's National Ag Statistics Service, total state farm production expenditures were at a record $13 billion last year--up 13 percent from 2013.

Feed expense represented the largest single production expense for Wisconsin farmers last year at $2.35 billion. That was up 14 percent. Farm services, the second largest expense, totalled $1.62 billion and was also up by double-digits representing a 15 percent increase from the prior year.

Ag economists say the largest category increase in 2014 was found in miscellaneous capital expenses, which skyrocketed by 250 percent; followed by farm improvements, which rose by 40 percent.

Other increases were found in livestock & related expenses, rent, taxes, labor, fuels, tractors and self-propelled machinery, seeds & plants, and trucks/autos. Interest expense, fertilizer, lime and soil conditioners were unchanged from the year before, while the cost of chemicals were lower.

By the numbers, expenditures per Wisconsin farm averaged $188,913 in 2014, compared with $164,900 in 2013. The average operation spent $34,058 on feed, $23,478 on farm services, $12,899 on fertilizer, and $15,072 on labor.

Meanwhile, expenditures for a Midwestern farm averaged $153,846 last year--up by $9,800 over 2013.

Nationally, farm production expenditures totalled $397.6 billion in 2014, up eight percent from 2013. Expenditures per U.S. farm averaged $191,500 in 2014, compared with $175,270 in 2013. On average, American farms spent $30,680 on feed, $21,818 on farm services, $21,722 on livestock, poultry and related expenses, and $16,472 on labor.

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