Farm sector production expenses are the costs of all inputs used to produce farm commodities, which directly affect farm profitability. In total, these expenses, including those associated with operator dwellings, are forecast to decrease by $13.4 billion, or 2.9 percent, from $463.8 billion in 2024 to $450.4 billion in 2025 inflation-adjusted dollars. This follows a projected decline of $20.9 billion, or 4.3 percent, from 2023 to 2024.
Lower spending on feed is forecast to account for more than half the decrease in total expenses over the years. However, the forecast declines in expenses in 2024 and 2025 are expected to be less than the increases in 2022 and 2023. That will keep production expenses above the average from 2004 through 2023. Total cash expenses are also forecast to fall in 2024 and 2025, yet will remain above average. In 2025, they’re projected to be seven percent above the 2004-2023 average.
