2021 Farm Production Expenses Surpassed $390 Billion

In 2021, USDA says farm production expenses hit $392.9 billion, higher than the $366.2 billion in 2020. That’s a 7.3 percent rise from 2020 to 2021. The four biggest expenditures totaled $189.4 billion, just over 48 percent of all expenses last year. Those four are feed at 16 percent, farm services at 11 percent, livestock, poultry, and related expenses at 10 percent, and labor at 9.4 percent. The total fuel expense was $12.9 billion on 2021. Diesel is the largest sub-component and totaled $8.4 billion in expenditures, accounting for 65 percent of the total fuel outlay. Diesel expenditures were 18 percent higher than in 2020. Gasoline expenses totaled $2.4 billion, 22 percent higher than the previous year. LP gas expenses rose to $1.4 billion in 2021, an 11 percent jump from 2020. Crop farm expenditures were $207.6 billion, up 6.2 percent, and livestock farm expenditures increased to $185.3 billion, up 8.5 percent in 2021.