USDA forecasts 2021 "cost of production"

Source: USDA news release

USDA has estimated annual production costs and returns and published accounts for major field crop and livestock enterprises since 1975. Cost and return estimates are reported for the United States and major production regions for corn, soybeans, wheat, cotton, grain sorghum, rice, peanuts, oats, barley, milk, hogs, and cow-calf. These cost and return accounts are "historical" accounts based on the actual costs incurred by producers.

For example, it will cost $69,749 to plant a 100-acre field of corn in 2021, which is $201 more than it cost in 2020.

2021 Estimated cost of production (dollars per acre):

Corn Soybeans Wheat

Operating costs: $333.02 $157.60 $127.03

Allocated overhead:

(includes labor, taxes.

land rental, etc) $364.47 $308.75 $202.23

Total costs: $697.49 $466.34 $329.26

* Forecasts as of December 2020. Projected costs are based on 2019 production costs and projected changes in 2020 and 2021 indexes of prices paid for farm inputs.

Source: Compiled by USDA, Economic Research Service using Agricultural Resource Management Survey data and other sources.

To view the complete report, click here.

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