Production expenses forecast may surprise some farmers
Most farm production expenses are expected to increase in 2023. That’s according to a new report published by the USDA’s Economic Research Service. That report indicated that input costs such as fertilizer, fuel, and feed are expected to decline slightly, but most other expenses are expected to increase.
Some farmers may find the forecast surprising.
Production expenses "are going to increase, but not as much (as last year)," said USDA Economic Research Service Administrator Spiro Stefanou. "Overall, it'll be about 4 percent."
Here’s the breakdown nationwide:
Forecast input cost trend in 2023
Feed costs Down by 5%
Fertilizer Down by 1%
Fuels and oils Down by 15%
Pesticides Up by 1%
Seeds Up by 2%
Property Taxes Up by 4%
Labor Up by 7%
Livestock purchases Up by 14%
Interest Up by 22%
