In most years a farmer can expect to pay more than they did the year before for production expenses. However, in USDA’s new farm income forecast for this year, the report calls for lower production expenses.
That is Spiro Stafanou, administrator of USDA’s Economic Research Service. He says that as commodity prices continue to fall USDA projects a 12% fall in crop receipts.
The production expense decrease is not a big drop at just 1%.
However, some expenses continue to increase including labor, interest, and the cost of buying livestock.
