(Washington) – The USDA is projecting a modest increase this year in farm production expenses. Gary Crawford and USDA Chief Economist Seth Meyer have the details.
“As farmers balance their financial books for 2023 analysts at the USDA say that on average those producers expense ledgers will show yet another increase this year in production expenses. One of the things that you’ve seen here is a lot of volatility in input prices. but the USDA’s Chief Economist Seth Meyer says that a lot pf that volatility happened in the early months of 2023 and for all the year USDA’s projecting a 3 1/2% increase in overall farm production expenses. Two big contributors to that a 43% hike in interest expenses and a 19% rise in expenses involved in purchasing livestock. But we do have things moderating like fuels and oil and fertilizer, things which had seen big run up in say the previous 18 months showing some actual decline. Meyer’s say’s farmers will have spent 14% for fertilizer this year also less for pesticides fuels and livestock feed.” – Gary Crawford and USDA Chief Economist Seth Meyer
