The cost of production on the farm was up 10.2% in 2011 over 2010 figures according to USDA's National Agricultural Statistics Service (NASS). NASS released its most recent analysis on Thursday and reported total expenditures of a record high $318.7 billion in 2011 with feed accounting for the lion's share of input costs, followed closely by fuel which bounded up 23.7% from 2010 figures.
The study showed that around one third of nationwide production expenditures came from the midwest region with the plains region a close second. Nearly half of all production expenditures were dedicated to feed, farm services, livestock, poultry related expenses and farm labor.
Farmers spent more than $10 billion on diesel fuel, more than doubling what they spent on gasoline and LP combined. Feed and diesel will be the expenses to watch as the summer comes to a close. With drought edging grain prices higher, inputs and production costs are likely to rise as well.
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