United States Department of Agriculture National Agricultural Statistics Service Economic Research Service Sp Sy 5 (99) Farm Production Expenditures Summary July 1999 Production Expenditures Up Slightly in 1998 U.S. farm production expenditures totaled $183.6 billion in 1998, up 0.2 percent from the revised 1997 total of $183.2 billion. The largest contributors to the increase were; trucks and autos, up 15.8 percent; tractors and self propelled farm machinery, up 11.1 percent; seeds and plants, up 7.5 percent; and farm improvements and construction, up 5.7 percent. These increases were partially offset by decreases in; fuels, down 10.0 percent; rent, down 6.3 percent; and feed, down 4.9 percent. The largest two expenditure categories were feed and farm services; each accounted for 13.6 percent of U.S. total production expenses. The farm services category includes expense items such as custom work, utilities, marketing charges, veterinary services, transportation costs, and miscellaneous business expenses. Average expenditures per U.S. farm in 1998 were $83,987 compared to $83,856, as revised for 1997. On the average, U.S. farm operations in 1998 spent $11,439 on feed; $11,439 on farm services; $7,916 on rent; $8,694 on labor; and $6,498 on livestock and poultry purchases. Revised estimates for 1997 indicated that U.S. farms spent an average of $12,040 on feed; $11,307 on farm services; $8,455 on rent; $8,377 on labor; and $6,500 for livestock and poultry purchases. The Farm Production Region (as defined on page 24) contributing most to total 1998 U.S. farm production expenditures was the Corn Belt with expenses of $34.8 billion, 19 percent of the U.S. total. Expenditures in the Corn Belt were up 2.7 percent from the 1997 level of $33.9 billion. In total expenditures, the Corn Belt was followed by the Pacific Region at $29.1 billion (1997 - $29.9 billion); Northern Plains $22.6 billion (1997 - $22.6 billion); Lake States $19.1 billion (1997 - $19.3 billion); and the Southern Plains at $15.6 billion (1997 - $16.0 billion). Farm Production Expenditures: Major Input Items, Total and Percent of Total, United States, 1997-98 1/ -------------------------------------------------------------------------------- Expenditure - Farm Share : 1997 : 1998 -------------------------------------------------------------------------------- :Million Dols Percent Million Dols Percent : Total Farm Production : Expenditures 2/ 3/ : 183,180 100.0 183,550 100.0 : Livestock, Poultry & : Related Expenses 4/ : 14,200 7.8 14,200 7.7 : Feed : 26,300 14.4 25,000 13.6 : Farm Services 5/ : 24,700 13.5 25,000 13.6 : Rent 6/ : 18,470 10.1 17,300 9.4 : Agricultural Chemicals 7/ : 9,000 4.9 9,100 5.0 : Fertilizer, Lime & Soil : Conditioners 7/ : 10,900 6.0 10,600 5.8 : Interest : 10,500 5.7 10,800 5.9 : Taxes (Real Estate & : Property) : 6,650 3.6 7,000 3.8 : Labor : 18,300 10.0 19,000 10.4 : Fuels : 6,000 3.3 5,400 2.9 : Farm Supplies & Repairs 8/ : 12,300 6.7 12,200 6.6 : Farm Improvements : & Construction 9/ : 6,100 3.3 6,450 3.5 : Tractors and Self-Propelled : Farm Machinery : 5,400 2.9 6,000 3.3 : Other Farm Machinery : 3,410 1.9 3,550 1.9 : Seeds & Plants 10/ : 6,700 3.7 7,200 3.9 : Trucks & Autos : 3,800 2.1 4,400 2.4 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 83,856 83,987 183,180 183,550 : Livestock, Poultry & : Related Expenses 4/ : 27.8 29.8 6,500 6,498 14,200 14,200 : Feed : 65.1 66.6 12,040 11,439 26,300 25,000 : Farm Services 5/ : 96.9 96.2 11,307 11,439 24,700 25,000 : Rent 6/ : 38.0 36.4 8,455 7,916 18,470 17,300 : Agricultural Chemicals 7/ : 55.0 57.3 4,120 4,164 9,000 9,100 : Fertilizer, Lime & Soil : Conditioners 7/ : 65.2 64.9 4,990 4,850 10,900 10,600 : Interest : 47.0 48.2 4,807 4,942 10,500 10,800 : Taxes (Real Estate & : Property) : 97.7 99.2 3,044 3,203 6,650 7,000 : Labor : 39.0 40.5 8,377 8,694 18,300 19,000 : Fuels : 89.2 86.3 2,747 2,471 6,000 5,400 : Farm Supplies & Repairs 8/ : 90.3 88.5 5,631 5,582 12,300 12,200 : Farm Improvements : & Construction 9/ : 51.5 51.9 2,792 2,951 6,100 6,450 : Tractors and Self-Propelled : Farm Machinery : 13.3 14.5 2,472 2,745 5,400 6,000 : Other Farm Machinery : 19.6 23.0 1,561 1,624 3,410 3,550 : Seeds & Plants 10/ : 53.1 54.5 3,067 3,295 6,700 7,200 : Trucks & Autos : 16.1 17.7 1,740 2,013 3,800 4,400 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Crop Farms, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 97,275 100,010 99,860 100,610 : Livestock, Poultry & : Related Expenses 4/ : 13.7 15.2 1,451 1,650 1,490 1,660 : Feed : 33.9 31.7 1,539 1,581 1,580 1,590 : Farm Services 5/ : 94.8 93.9 14,271 14,811 14,650 14,900 : Rent 6/ : 41.9 41.2 14,612 13,827 15,000 13,910 : Agricultural Chemicals 7/ : 69.9 71.1 7,705 7,952 7,910 8,000 : Fertilizer, Lime & Soil : Conditioners 7/ : 75.0 75.7 8,251 8,231 8,470 8,280 : Interest : 49.0 50.7 5,562 5,895 5,710 5,930 : Taxes (Real Estate & : Property) : 97.7 99.7 3,702 4,125 3,800 4,150 : Labor : 42.9 45.6 13,102 13,708 13,450 13,790 : Fuels : 88.7 86.5 3,731 3,469 3,830 3,490 : Farm Supplies & Repairs 8/ : 90.0 86.5 7,433 7,475 7,630 7,520 : Farm Improvements : & Construction 9/ : 43.1 43.8 2,630 2,922 2,700 2,940 : Tractors and Self-Propelled : Farm Machinery : 15.8 16.7 3,526 3,827 3,620 3,850 : Other Farm Machinery : 20.8 25.2 2,052 2,083 2,107 2,095 : Seeds & Plants 10/ : 69.9 71.8 5,572 6,093 5,720 6,130 : Trucks & Autos : 18.0 19.2 1,844 2,097 1,893 2,110 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Livestock Farms, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 71,959 70,321 83,320 82,940 : Livestock, Poultry & : Related Expenses 4/ : 40.3 42.1 10,977 10,632 12,710 12,540 : Feed : 92.7 95.9 21,349 19,848 24,720 23,410 : Farm Services 5/ : 98.8 98.1 8,680 8,563 10,050 10,100 : Rent 6/ : 34.5 32.4 2,997 2,874 3,470 3,390 : Agricultural Chemicals 7/ : 42.1 45.7 941 933 1,090 1,100 : Fertilizer, Lime & Soil : Conditioners 7/ : 56.6 55.8 2,099 1,967 2,430 2,320 : Interest : 45.2 46.0 4,137 4,129 4,790 4,870 : Taxes (Real Estate & : Property) : 97.6 98.8 2,461 2,416 2,850 2,850 : Labor : 35.6 36.2 4,189 4,417 4,850 5,210 : Fuels : 89.6 86.2 1,874 1,619 2,170 1,910 : Farm Supplies & Repairs 8/ : 90.6 90.2 4,033 3,968 4,670 4,680 : Farm Improvements : & Construction 9/ : 59.0 58.7 2,936 2,976 3,400 3,510 : Tractors and Self-Propelled : Farm Machinery : 11.1 12.6 1,537 1,823 1,780 2,150 : Other Farm Machinery : 18.4 21.1 1,125 1,234 1,303 1,455 : Seeds & Plants 10/ : 38.2 39.9 846 907 980 1,070 : Trucks & Autos : 14.3 16.4 1,647 1,942 1,907 2,290 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Economic Class Gross Sales $250,000 and Over, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 661,632 642,333 102,950 104,090 : Livestock, Poultry & : Related Expenses 4/ : 45.6 46.0 61,150 59,210 9,515 9,595 : Feed : 58.5 61.5 116,581 107,868 18,140 17,480 : Farm Services 5/ : 100.0 100.0 84,447 82,320 13,140 13,340 : Rent 6/ : 79.0 79.8 66,787 61,339 10,392 9,940 : Agricultural Chemicals 7/ : 89.9 89.2 34,062 33,632 5,300 5,450 : Fertilizer, Lime & Soil : Conditioners 7/ : 87.6 87.7 33,869 33,015 5,270 5,350 : Interest : 86.1 88.4 28,271 29,559 4,399 4,790 : Taxes (Real Estate & : Property) : 98.8 99.9 13,683 14,317 2,129 2,320 : Labor : 86.6 87.5 88,271 87,998 13,735 14,260 : Fuels : 99.3 98.3 17,082 15,366 2,658 2,490 : Farm Supplies & Repairs 8/ : 99.4 99.5 39,120 37,396 6,087 6,060 : Farm Improvements : & Construction 9/ : 74.6 75.6 18,342 18,575 2,854 3,010 : Tractors and Self-Propelled : Farm Machinery : 34.0 36.5 16,324 17,309 2,540 2,805 : Other Farm Machinery : 43.3 45.8 9,961 9,133 1,550 1,480 : Seeds & Plants 10/ : 84.5 85.2 24,126 25,733 3,754 4,170 : Trucks & Autos : 34.6 36.8 7,654 8,207 1,191 1,330 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Economic Class Gross Sales $100,000 - $249,999, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 184,640 182,604 36,400 35,480 : Livestock, Poultry & : Related Expenses 4/ : 39.5 42.8 11,160 11,323 2,200 2,200 : Feed : 65.6 67.7 19,834 18,399 3,910 3,575 : Farm Services 5/ : 100.0 100.0 23,739 25,244 4,680 4,905 : Rent 6/ : 76.7 78.9 25,870 23,495 5,100 4,565 : Agricultural Chemicals 7/ : 89.6 90.2 10,348 10,602 2,040 2,060 : Fertilizer, Lime & Soil : Conditioners 7/ : 91.0 89.3 14,102 13,304 2,780 2,585 : Interest : 79.9 81.5 12,098 11,966 2,385 2,325 : Taxes (Real Estate & : Property) : 98.1 99.9 8,015 7,952 1,580 1,545 : Labor : 66.7 70.8 12,478 12,764 2,460 2,480 : Fuels : 98.6 98.8 7,254 6,511 1,430 1,265 : Farm Supplies & Repairs 8/ : 99.6 98.8 13,138 13,073 2,590 2,540 : Farm Improvements : & Construction 9/ : 65.9 66.0 5,002 4,936 986 959 : Tractors and Self-Propelled : Farm Machinery : 21.5 22.9 6,016 6,433 1,186 1,250 : Other Farm Machinery : 36.6 42.8 3,718 4,189 733 814 : Seeds & Plants 10/ : 86.6 89.1 7,862 8,260 1,550 1,605 : Trucks & Autos : 30.9 28.5 3,698 3,906 729 759 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Economic Class Gross Sales $40,000 - $99,999, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 81,606 77,408 18,900 17,680 : Livestock, Poultry & : Related Expenses 4/ : 36.8 33.8 4,965 4,772 1,150 1,090 : Feed : 58.9 61.7 7,815 6,808 1,810 1,555 : Farm Services 5/ : 99.6 99.3 12,219 11,734 2,830 2,680 : Rent 6/ : 63.7 63.3 7,677 7,334 1,778 1,675 : Agricultural Chemicals 7/ : 81.7 82.0 4,188 3,897 970 890 : Fertilizer, Lime & Soil : Conditioners 7/ : 85.9 87.5 6,261 5,889 1,450 1,345 : Interest : 69.3 67.5 6,261 6,064 1,450 1,385 : Taxes (Real Estate & : Property) : 97.8 99.9 4,313 4,238 999 968 : Labor : 57.1 55.9 4,534 4,466 1,050 1,020 : Fuels : 96.8 94.9 3,541 2,955 820 675 : Farm Supplies & Repairs 8/ : 97.4 97.1 6,770 6,392 1,568 1,460 : Farm Improvements : & Contruction 9/ : 57.9 53.9 2,742 2,609 635 596 : Tractors and Self-Propelled : Farm Machinery : 18.0 16.5 2,707 2,780 627 635 : Other Farm Machinery : 28.0 29.5 1,887 1,856 437 424 : Seeds & Plants 10/ : 80.0 83.1 3,368 3,297 780 753 : Trucks & Autos : 24.3 18.4 2,211 2,167 512 495 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Economic Class Gross Sales $10,000 - $39,999, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 32,610 34,303 13,470 14,150 : Livestock, Poultry & : Related Expenses 4/ : 29.4 29.3 2,082 1,952 860 805 : Feed : 61.2 64.6 2,929 2,788 1,210 1,150 : Farm Services 5/ : 98.4 97.0 4,987 5,212 2,060 2,150 : Rent 6/ : 40.7 39.5 2,155 2,036 890 840 : Agricultural Chemicals 7/ : 63.5 64.3 1,259 1,285 520 530 : Fertilizer, Lime & Soil : Conditioners 7/ : 75.2 72.7 2,227 2,145 920 885 : Interest : 45.7 47.1 2,542 2,533 1,050 1,045 : Taxes (Real Estate & : Property) : 98.5 99.4 2,058 2,376 850 980 : Labor : 41.3 38.9 1,562 1,818 645 750 : Fuels : 93.8 89.9 1,428 1,307 590 539 : Farm Supplies & Repairs 8/ : 95.4 92.3 2,820 2,945 1,165 1,215 : Farm Improvements : & Construction 9/ : 49.0 49.9 1,707 1,947 705 803 : Tractors and Self-Propelled : Farm Machinery : 15.9 14.3 1,373 1,685 567 695 : Other Farm Machinery : 20.7 25.3 818 1,004 338 414 : Seeds & Plants 10/ : 62.9 64.6 1,060 1,176 438 485 : Trucks & Autos : 14.9 18.0 1,535 2,046 634 844 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Economic Class Gross Sales Less Than $10,000, United States, 1997-98 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars -- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 9,654 10,226 11,460 12,150 : Livestock, Poultry & : Related Expenses 4/ : 20.2 24.3 400 429 475 510 : Feed : 69.0 68.9 1,036 1,044 1,230 1,240 : Farm Services 5/ : 94.6 93.9 1,676 1,620 1,990 1,925 : Rent 6/ : 17.4 15.3 261 236 310 280 : Agricultural Chemicals 7/ : 33.5 38.3 143 143 170 170 : Fertilizer, Lime & Soil : Conditioners 7/ : 47.9 49.0 404 366 480 435 : Interest : 30.3 32.5 1,024 1,056 1,216 1,255 : Taxes (Real Estate & : Property) : 97.1 98.8 920 999 1,092 1,187 : Labor : 21.8 25.5 345 412 410 490 : Fuels : 82.2 78.9 423 363 502 431 : Farm Supplies & Repairs 8/ : 83.5 81.5 750 778 890 925 : Farm Improvements : & Construction 9/ : 45.0 46.1 775 911 920 1,082 : Tractors and Self-Propelled : Farm Machinery : 6.7 9.3 404 518 480 615 : Other Farm Machinery : 10.5 13.5 297 352 352 418 : Seeds & Plants 10/ : 31.5 33.3 150 157 178 187 : Trucks & Autos : 9.1 12.4 618 818 734 972 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Northeast Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 78,727 82,075 11,876 12,340 : Livestock, Poultry & : Related Expenses 4/ : 30.4 34.5 3,911 4,157 590 625 : Feed : 62.5 65.8 16,440 16,295 2,480 2,450 : Farm Services 5/ : 96.2 91.6 11,601 11,506 1,750 1,730 : Rent 6/ : 30.4 30.5 2,055 2,128 310 320 : Agricultural Chemicals 7/ : 53.9 53.2 2,055 2,195 310 330 : Fertilizer, Lime & Soil : Conditioners 7/ : 58.7 68.8 2,983 2,793 450 420 : Interest : 44.5 41.5 3,845 3,991 580 600 : Taxes (Real Estate & : Property) : 98.7 99.9 3,745 4,223 565 635 : Labor : 38.4 34.5 10,461 11,107 1,578 1,670 : Fuels : 93.7 90.4 2,552 2,241 385 337 : Farm Supplies & Repairs 8/ : 96.6 90.6 6,530 6,984 985 1,050 : Farm Improvements : & Construction 9/ : 57.9 58.2 4,011 4,656 605 700 : Tractors and Self-Propelled : Farm Machinery : 10.9 14.8 1,783 2,255 269 339 : Other Farm Machinery : 21.6 29.3 1,757 2,062 265 310 : Seeds & Plants 10/ : 56.7 63.3 3,089 3,359 466 505 : Trucks & Autos : 17.0 15.0 1,657 1,929 250 290 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Lake States Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 90,587 90,857 19,295 19,080 : Livestock, Poultry & : Related Expenses 4/ : 28.7 36.1 5,634 5,000 1,200 1,050 : Feed : 53.1 58.4 12,629 11,524 2,690 2,420 : Farm Services 5/ : 95.1 94.5 11,127 11,000 2,370 2,310 : Rent 6/ : 42.2 41.9 7,324 7,214 1,560 1,515 : Agricultural Chemicals 7/ : 63.1 63.8 4,460 4,571 950 960 : Fertilizer, Lime & Soil : Conditioners 7/ : 66.7 70.5 5,376 5,095 1,145 1,070 : Interest : 56.3 55.7 6,103 6,143 1,300 1,290 : Taxes (Real Estate & : Property) : 97.3 100.0 4,779 4,762 1,018 1,000 : Labor : 35.2 43.4 6,901 7,976 1,470 1,675 : Fuels : 88.1 85.8 2,915 2,643 621 555 : Farm Supplies & Repairs 8/ : 92.1 86.4 7,629 7,500 1,625 1,575 : Farm Improvements : & Construction 9/ : 47.1 54.6 3,624 4,357 772 915 : Tractors and Self-Propelled : Farm Machinery : 16.8 12.0 3,460 3,519 737 739 : Other Farm Machinery : 30.2 39.0 2,418 2,643 515 555 : Seeds & Plants 10/ : 77.8 72.8 4,239 4,643 903 975 : Trucks & Autos : 17.6 22.0 1,667 2,048 355 430 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Corn Belt Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 78,553 80,648 33,935 34,840 : Livestock, Poultry & : Related Expenses 4/ : 28.4 26.0 4,630 4,572 2,000 1,975 : Feed : 60.3 58.0 8,958 7,986 3,870 3,450 : Farm Services 5/ : 97.5 99.1 7,269 7,685 3,140 3,320 : Rent 6/ : 43.2 45.3 14,954 14,722 6,460 6,360 : Agricultural Chemicals 7/ : 62.1 67.0 5,255 5,440 2,270 2,350 : Fertilizer, Lime & Soil : Conditioners 7/ : 71.5 72.0 6,620 6,944 2,860 3,000 : Interest : 54.1 58.4 4,722 4,919 2,040 2,125 : Taxes (Real Estate & : Property) : 98.4 100.0 3,403 3,692 1,470 1,595 : Labor : 34.3 32.8 2,998 3,484 1,295 1,505 : Fuels : 84.7 83.4 2,366 2,213 1,022 956 : Farm Supplies & Repairs 8/ : 87.5 86.0 4,456 4,572 1,925 1,975 : Farm Improvements : & Construction 9/ : 49.9 48.1 2,664 2,708 1,151 1,170 : Tractors and Self-Propelled : Farm Machinery : 15.1 18.1 2,632 3,414 1,137 1,475 : Other Farm Machinery : 25.3 27.4 1,775 1,870 767 808 : Seeds & Plants 10/ : 65.4 68.2 4,326 4,664 1,869 2,015 : Trucks & Autos : 14.1 16.1 1,412 1,632 610 705 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Northern Plains Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 122,701 123,161 22,577 22,600 : Livestock, Poultry & : Related Expenses 4/ : 34.6 38.3 17,609 18,120 3,240 3,325 : Feed : 65.1 59.6 12,228 12,316 2,250 2,260 : Farm Services 5/ : 97.5 97.4 13,043 13,951 2,400 2,560 : Rent 6/ : 62.4 58.8 19,565 17,003 3,600 3,120 : Agricultural Chemicals 7/ : 70.5 69.4 5,679 5,940 1,045 1,090 : Fertilizer, Lime & Soil : Conditioners 7/ : 70.6 71.6 8,152 7,548 1,500 1,385 : Interest : 64.2 68.1 7,745 8,338 1,425 1,530 : Taxes (Real Estate & : Property) : 96.8 99.9 5,348 5,531 984 1,015 : Labor : 40.5 39.4 4,277 4,986 787 915 : Fuels : 96.8 92.1 4,712 4,316 867 792 : Farm Supplies & Repairs 8/ : 95.3 92.7 8,451 8,474 1,555 1,555 : Farm Improvements : & Construction 9/ : 48.6 49.4 2,663 2,698 490 495 : Tractors and Self-Propelled : Farm Machinery : 19.9 16.7 3,511 3,651 646 670 : Other Farm Machinery : 27.7 28.9 2,772 2,659 510 488 : Seeds & Plants 10/ : 68.1 69.4 3,989 4,469 734 820 : Trucks & Autos : 27.0 28.3 2,853 3,079 525 565 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Appalachian Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 42,913 45,696 13,346 14,120 : Livestock, Poultry & : Related Expenses 4/ : 25.6 26.8 3,875 4,191 1,205 1,295 : Feed : 72.7 77.6 10,193 10,324 3,170 3,190 : Farm Services 5/ : 97.6 97.6 5,305 5,696 1,650 1,760 : Rent 6/ : 25.9 26.8 2,508 2,605 780 805 : Agricultural Chemicals 7/ : 57.0 50.0 1,495 1,602 465 495 : Fertilizer, Lime & Soil : Conditioners 7/ : 71.2 70.7 2,331 2,638 725 815 : Interest : 33.9 35.9 1,929 2,039 600 630 : Taxes (Real Estate & : Property) : 98.9 99.9 1,161 1,181 361 365 : Labor : 38.8 43.7 3,424 3,754 1,065 1,160 : Fuels : 88.8 90.2 1,383 1,369 430 423 : Farm Supplies & Repairs 8/ : 87.2 89.6 2,540 2,654 790 820 : Farm Improvements : & Construction 9/ : 49.5 51.7 1,543 1,812 480 560 : Tractors and Self-Propelled : Farm Machinery : 6.8 12.1 1,736 1,987 540 614 : Other Farm Machinery : 12.5 17.3 932 1,036 290 320 : Seeds & Plants 10/ : 54.5 50.9 1,068 1,197 332 370 : Trucks & Autos : 10.0 13.9 1,399 1,537 435 475 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Average per Farm, Farms Reporting, and Total, Southeast Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 72,881 72,130 12,244 12,190 : Livestock, Poultry & : Related Expenses 4/ : 21.8 20.6 2,619 2,811 440 475 : Feed : 65.1 64.8 13,393 12,781 2,250 2,160 : Farm Services 5/ : 94.2 92.2 10,298 11,065 1,730 1,870 : Rent 6/ : 23.9 21.3 2,500 2,308 420 390 : Agricultural Chemicals 7/ : 41.1 46.6 4,792 4,645 805 785 : Fertilizer, Lime & Soil : Conditioners 7/ : 72.6 70.4 5,060 4,675 850 790 : Interest : 32.8 35.6 3,333 3,462 560 585 : Taxes (Real Estate & : Property) : 95.2 98.7 1,988 2,041 334 345 : Labor : 34.8 42.1 10,893 11,302 1,830 1,910 : Fuels : 87.0 81.5 2,321 2,112 390 357 : Farm Supplies & Repairs 8/ : 86.9 83.4 4,821 4,467 810 755 : Farm Improvements : & construction 9/ : 47.2 44.4 2,619 2,308 440 390 : Tractors and Self-Propelled : Farm Machinery : 10.3 12.5 2,202 2,154 370 364 : Other Farm Machinery : 10.3 11.1 923 964 155 163 : Seeds & Plants 10/ : 38.6 34.6 3,077 3,107 517 525 : Trucks & Autos : 14.1 14.8 1,429 1,716 240 290 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Delta Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 76,529 75,720 9,260 9,200 : Livestock, Poultry & : Related Expenses 4/ : 25.2 27.3 5,455 5,720 660 695 : Feed : 69.4 70.8 15,289 15,144 1,850 1,840 : Farm Services 5/ : 91.6 96.7 10,744 10,288 1,300 1,250 : Rent 6/ : 36.8 35.3 7,025 6,502 850 790 : Agricultural Chemicals 7/ : 38.6 53.2 6,198 6,091 750 740 : Fertilizer, Lime & Soil : Conditioners 7/ : 64.3 64.9 4,298 4,198 520 510 : Interest : 34.6 38.6 3,347 3,498 405 425 : Taxes (Real Estate & : Property) : 89.2 86.0 1,298 1,317 157 160 : Labor : 36.5 45.7 5,041 4,979 610 605 : Fuels : 95.3 87.2 2,934 2,634 355 320 : Farm Supplies & Repairs 8/ : 88.4 87.8 5,000 4,774 605 580 : Farm Improvements : & Construction 9/ : 45.4 50.9 1,488 1,728 180 210 : Tractors and Self-Propelled : Farm Machinery : 8.8 13.2 2,719 2,905 329 353 : Other Farm Machinery : 15.1 18.3 1,347 1,366 163 166 : Seeds & Plants 10/ : 40.4 49.1 2,198 2,305 266 280 : Trucks & Autos : 13.4 19.6 1,860 2,058 225 250 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Southern Plains Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 52,088 50,550 16,043 15,620 : Livestock, Poultry & : Related Expenses 4/ : 27.7 30.8 8,036 7,864 2,475 2,430 : Feed : 84.7 85.9 7,857 7,476 2,420 2,310 : Farm Services 5/ : 97.8 95.7 7,630 7,379 2,350 2,280 : Rent 6/ : 34.4 35.2 4,123 3,544 1,270 1,095 : Agricultural Chemicals 7/ : 38.9 42.7 1,591 1,424 490 440 : Fertilizer, Lime & Soil : Conditioners 7/ : 54.1 52.9 2,500 2,460 770 760 : Interest : 43.5 39.0 2,857 2,994 880 925 : Taxes (Real Estate & : Property) : 99.3 100.0 1,656 1,812 510 560 : Labor : 40.8 37.2 3,458 3,350 1,065 1,035 : Fuels : 87.1 85.4 2,341 1,922 721 594 : Farm Supplies & Repairs 8/ : 89.7 93.0 3,156 2,994 972 925 : Farm Improvements : & Construction 9/ : 57.1 51.1 1,760 1,796 542 555 : Tractors and Self-Propelled : Farm Machinery : 12.9 7.8 1,380 1,405 425 434 : Other Farm Machinery : 16.1 14.4 844 819 260 253 : Seeds & Plants 10/ : 28.9 38.4 1,192 1,327 367 410 : Trucks & Autos : 18.3 15.6 1,591 1,893 490 585 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Mountain Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 111,391 109,276 14,659 14,490 : Livestock, Poultry & : Related Expenses 4/ : 35.2 43.2 11,778 11,463 1,550 1,520 : Feed : 64.7 69.2 16,337 15,008 2,150 1,990 : Farm Services 5/ : 99.1 97.0 17,553 16,968 2,310 2,250 : Rent 6/ : 52.7 36.2 9,271 8,446 1,220 1,120 : Agricultural Chemicals 7/ : 59.8 49.3 3,191 3,469 420 460 : Fertilizer, Lime & Soil : Conditioners 7/ : 50.9 35.7 5,319 4,977 700 660 : Interest : 59.1 46.8 7,143 7,353 940 975 : Taxes (Real Estate & : Property) : 97.2 99.9 3,351 3,507 441 465 : Labor : 41.7 44.7 12,234 11,953 1,610 1,585 : Fuels : 86.8 81.2 3,959 3,522 521 467 : Farm Supplies & Repairs 8/ : 91.9 81.9 7,188 7,768 946 1,030 : Farm Improvements : & Construction 9/ : 51.3 53.6 3,305 3,243 435 430 : Tractors and Self-Propelled : Farm Machinery : 12.8 16.8 3,321 3,756 437 498 : Other Farm Machinery : 16.5 16.6 1,824 1,863 240 247 : Seeds & Plants 10/ : 43.7 37.1 2,812 2,640 370 350 : Trucks & Autos : 22.4 18.6 2,508 3,017 330 400 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Pacific Region, 1997-98 13/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1997 : 1998 : 1997 : 1998 : 1997 : 1998 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 181,485 172,522 29,945 29,070 : Livestock, Poultry & : Related Expenses 4/ : 21.0 20.4 5,091 4,807 840 810 : Feed : 45.1 52.7 19,212 17,389 3,170 2,930 : Farm Services 5/ : 99.7 95.2 34,545 33,650 5,700 5,670 : Rent 6/ : 29.5 23.3 12,121 10,593 2,000 1,785 : Agricultural Chemicals 7/ : 55.1 70.9 9,061 8,605 1,495 1,450 : Fertilizer, Lime & Soil : Conditioners 7/ : 59.0 56.3 8,364 7,062 1,380 1,190 : Interest : 41.9 53.1 10,727 10,178 1,770 1,715 : Taxes (Real Estate & : Property) : 99.8 99.9 4,909 5,104 810 860 : Labor : 56.6 55.5 42,364 41,187 6,990 6,940 : Fuels : 93.5 87.5 4,170 3,555 688 599 : Farm Supplies & Repairs 8/ : 94.5 92.5 12,648 11,484 2,087 1,935 : Farm Improvements : & Construction 9/ : 61.8 62.3 6,091 6,083 1,005 1,025 : Tractors and Self-Propelled : Farm Machinery : 17.1 21.9 3,091 3,050 510 514 : Other Farm Machinery : 12.1 22.0 1,485 1,424 245 240 : Seeds & Plants 10/ : 36.1 40.5 5,309 5,638 876 950 : Trucks & Autos : 12.0 18.3 2,061 2,433 340 410 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Total, United States, 1993-98 1/ -------------------------------------------------------------------------------- : : : : : : Expenditure - Farm Share : 1993 : 1994 : 1995 : 1996 : 1997 : 1998 : : : : : : -------------------------------------------------------------------------------- : Million Dollars : Total Farm Production : Expenditures 2/ 3/ :155,160 160,670 167,800 174,950 183,180 183,550 : Livestock, Poultry & : Related Expenses 4/ : 16,200 15,200 15,000 12,800 14,200 14,200 : Feed : 21,400 22,600 23,800 25,200 26,300 25,000 : Farm Services 5/ : 21,020 23,000 23,800 23,500 24,700 25,000 : Rent 6/ : 14,780 15,400 16,000 18,300 18,470 17,300 : Agricultural Chemicals 7/ : 6,700 7,200 7,700 8,500 9,000 9,100 : Fertilizer, Lime & Soil : Conditioners 7/ : 8,370 9,150 10,000 10,900 10,900 10,600 : Interest : 9,300 9,450 10,300 10,400 10,500 10,800 : Taxes (Real Estate & : Property) : 5,930 6,200 6,400 6,500 6,650 7,000 : Labor : 14,700 15,000 16,000 17,100 18,300 19,000 : Fuels : 5,090 5,100 5,500 5,800 6,000 5,400 : Farm Supplies & Repairs 8/ : 10,120 10,800 11,500 11,800 12,300 12,200 : Farm Improvements : & Construction 9/ : 5,650 5,400 5,200 5,900 6,100 6,450 : Tractors and Self-Propelled : Farm Machinery : 4,440 4,610 4,750 5,000 5,400 6,000 : Other Farm Machinery : 3,610 3,360 3,100 3,350 3,410 3,550 : Seeds & Plants 10/ : 5,150 5,360 5,450 6,200 6,700 7,200 : Trucks & Autos : 2,500 2,560 2,800 3,300 3,800 4,400 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Percent of Total, United States, 1993-98 1/ -------------------------------------------------------------------------------- : : : : : : Expenditure - Farm Share : 1993 : 1994 : 1995 : 1996 : 1997 : 1998 : : : : : : -------------------------------------------------------------------------------- : Percent : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 100.0 100.0 100.0 100.0 : Livestock, Poultry & : Related Expenses 4/ : 10.4 9.5 8.9 7.3 7.8 7.7 : Feed : 13.8 14.1 14.2 14.4 14.4 13.6 : Farm Services 5/ : 13.5 14.3 14.2 13.4 13.5 13.6 : Rent 6/ : 9.5 9.6 9.5 10.5 10.1 9.4 : Agricultural Chemicals 7/ : 4.3 4.5 4.6 4.9 4.9 5.0 : Fertilizer, Lime & Soil : Conditioners 7/ : 5.4 5.7 6.0 6.2 6.0 5.8 : Interest : 6.0 5.9 6.1 5.9 5.7 5.9 : Taxes (Real Estate & : Property) : 3.8 3.9 3.8 3.7 3.6 3.8 : Labor : 9.5 9.3 9.5 9.8 10.0 10.4 : Fuels : 3.3 3.2 3.3 3.3 3.3 2.9 : Farm Supplies & Repairs 8/ : 6.5 6.7 6.9 6.7 6.7 6.6 : Farm Improvements : & Construction 9/ : 3.6 3.4 3.1 3.4 3.3 3.5 : Tractors and Self-Propelled : Farm Machinery : 2.9 2.9 2.8 2.9 2.9 3.3 : Other Farm Machinery : 2.3 2.1 1.8 1.9 1.9 1.9 : Seeds & Plants 10/ : 3.3 3.3 3.2 3.5 3.7 3.9 : Trucks & Autos : 1.6 1.6 1.7 1.9 2.1 2.4 -------------------------------------------------------------------------------- See footnotes on page 23. Footnotes 1/ Excludes AK and HI. 2/ Total includes production costs not allocated to any of the 16 expense categories published. 3/ Includes landlord and contractor share of farm production expenses. 4/ Includes purchases and leasing of livestock and poultry. 5/ Includes all crop custom work, veterinary services, custom feeding, transportation costs, marketing charges, insurance, leasing of machinery and equipment, miscellaneous business expenses, and utilities. 6/ Includes public and private grazing fees. 7/ Includes material and application costs. 8/ Includes bedding and litter, marketing containers, power farm shop equipment, miscellaneous non-capital equipment and supplies, repairs and maintenance of livestock and poultry equipment, and capital equipment for livestock and poultry. 9/ Includes all expenditures related to new construction or repairs of buildings and fences, and any improvements to physical structures of land. 10/ Excludes bedding plants, nursery stock, and seed purchased for resale. Includes seed treatment. 11/ Number of farms reporting item divided by total number of farms. 12/ Total expenditures divided by total number of farms. 13/ Regions consist of the following States: Northeast: CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT; Lake States: MI, MN, WI; Corn Belt: IL, IN, IA, MO, OH; Northern Plains: KS, NE, ND, SD; Appalachian: KY, NC, TN, VA, WV; Southeast: AL, FL, GA, SC; Delta: AR, LA, MS; Southern Plains: OK, TX; Mountain: AZ, CO, ID, MT, NV, NM, UT, WY; Pacific: CA, OR, WA. See next page for regional map. Farm Production Expenditure Regions Northeast CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT. Lake States MI, MN, WI. Corn Belt IL, IN, IA, MO, OH. Northern Plains KS, NE, ND, SD. Appalachian KY, NC, TN, VA, WV. Southeast AL, FL, GA, SC. Delta States AR, LA, MS. Southern Plains OK, TX. Mountain AZ, CO, ID, MT, NV, NM, UT, WY. Pacific CA, OR, WA. Estimating Procedures and Reliability Program Changes: The National Agricultural Statistics Service (NASS) initiated an estimation program in calendar year 1993 for farm production expenditures. Prior year's Farm Production Expenditure publications included only survey indications for expenditures at the U.S. level and other geographic, size, and type of farm levels. Estimates are currently published based on survey indications and other check data for major groupings of farm production expenses for the U.S., 10 Farm Production Regions, 5 U.S. Economic Sales Classes, and U.S. Crop and Livestock Farms. Previous year's data are subject to revision as additional indications and check data are available. In 1996, the Agricultural Resource Management Study (ARMS) was developed from a combining of the previous Farm Costs and Returns Survey (FCRS) and the Cropping Practice Survey (CPS). The initiative to combine these surveys came from a growing interest in tying the resources used in agricultural production and the farm financial information to the relationships between various production practices and farm financial conditions; and the need to improve the efficiency of data collection by combining identical information collected in both the CPS and the FCRS into one survey. Because of the variety of issues needing to be addressed with ARMS, it was designed with a flexible structure that allowed different questionnaire versions to focus more specifically on topics of interest. The ARMS was conducted in three phases. Survey phases one and two screened for farms with specific commodities of interest and collected agricultural production, resource use, and cost of production information. The third phase of the survey collected farm production expenditure data similar to the previous FCRS. One of the primary uses of farm production expenditure data is for weighting in the construction of prices paid indexes. In early 1995, NASS completed a revision of the indexes which included changes in the structure of components estimated and subsequently, the relative weights used in the construction of the indexes. Changes were made in an effort to simplify updating of component items and also to establish more appropriate weights for the series. In a combined effort to facilitate this process, changes were made in component items estimated in this publication. The changes made include: grazing fees were moved from the Farm Services category to Rent; oils and lubricants were moved from Fuels to Farm Supplies and Repairs; repairs and maintenance expenditures were moved from Other Farm Machinery to Farm Supplies and Repairs; and the category Building and Fencing along with Farm and Land Improvements were combined into one category called Farm Improvements and Construction. Estimates for these levels were revised back to 1990 at the U.S. level to provide a more useful series for data users. Survey Procedures: The farm production expenditure data contained in this publication are the result of a sample survey of nearly 19,450 farms and ranches contacted in February through April 1999 in all States except Alaska and Hawaii. The Agricultural Resource Management Study covers the population of farms in the 48 contiguous States defined as "all establishments which sold or would normally have sold at least $1,000 of agricultural products during the previous year". These establishments are not only traditional agricultural operations such as grain farms and dairy operations, but also specialty farms such as orchards, nurseries, and those producing fish in captivity. The Agricultural Resource Management Study is a multiple frame survey which utilizes a list frame and a complementary area frame. The list frame typically represents the larger, more specialized operations contributing the greater portion of the data expansions. The area frame provides coverage for the smaller operations that are not available for sampling from the list. Since all of the operators on the list frame are also part of the area frame, rigorous procedures are followed to be certain that an operation is only included in the data expansions once. These multiple frame expansions are unbiased and provide more precise expansions than could be obtained by using the area frame alone. Special training occurs prior to the Agricultural Resource Management Study period to insure consistent and proper execution of survey procedures in farm determination, data collection, and editing of detailed expense and income data. Field and office staff edit data using hand and machine edit procedures. Questionnaires are reviewed for consistency, data relationships, and completeness. Past analysis has shown approximately half of the edits simply correct for data misplacement errors. In cases where respondents are unable or unwilling to report data for any item on the questionnaire, the field enumerators or survey statisticians can impute a value. For income, related debt/asset data, and a few expense items statisticians are allowed to enter a (-1) to indicate a missing value and an algorithm within the edit will compute and input the missing value based on similar size and type of operations. The computer generated imputation has not been implemented for all expenditure data because NASS analysis has shown that there are significantly fewer missing data cells on expenses than on income. Missing values for expense items, where no data are reported, are edited to a positive value based on other reported values from similar operations by the survey statistician. Data Comparability: This publication includes estimates for 1997 and 1998 farm production expenditures for the U.S., 10 Farm Production Expenditure Regions, 5 Economic Sales Classes, and Crop and Livestock Farms. Total expenditures and expenses for major input items at the U.S. level are provided back through 1993 to provide data users a comparable data series. Some of the expenditure estimates published in this report will differ from production expense estimates published in the Economic Research Service's "Farm Business Economics Report". The Economic Research Service (ERS), the agency responsible for estimates of farm income, treats agriculture as a sector in the U.S. economy while the National Agricultural Statistics Service is interested in annual production expenditures as a cash outlay to farming operations. In most cases, items that would be considered cash farm operating expenditures are estimated the same by both agencies (NASS and ERS) with the estimates established during a joint national board. This would include production inputs such as feed, seed, fertilizer, chemicals, and labor. There is a major difference in accounting between NASS and ERS for reporting capital expenditures. NASS considers capital expenditures such as purchases of vehicles and construction of buildings as a cash outlay for the farming operation while ERS recognizes the contribution of the expenditure as a depreciable asset to the farm sector. NASS interest expense includes the reported farm share of the household and excludes landlord interest expenditures. ERS excludes the nonfarm share of interest expense but includes landlord interest expense. An additional difference in methodology exists for livestock & poultry expenditures. ERS does not include farm to farm sales of livestock as this would not be a cost to the sector account -- only an expense to the farm making the purchase and income to the farm making the sale. Data Reliability: Two types of errors, sampling and nonsampling, are possible in an estimate based on a sample survey. Both types affect the "precision" of the estimates. Sampling error occurs because a complete census is not taken. The sampling error measures the variation in estimates from the average of all possible samples. An estimate of 100 with a sampling error of 1 would mean that chances are 19 out of 20 that the estimates from all possible samples averaged together would be between 98 and 102 which is the survey estimate plus or minus two times the sampling error. The sampling error expressed as a percent of the estimate is called the relative sampling error. For 1998 total expenditures, the relative sampling errors were as follows for the different domains estimated: at the U.S. level 2.0 percent; from 2.4 to 8.2 percent at the Regional level; from 3.1 to 6.6 at the U.S. Economic Sales Class level; 2.8 for Crop Farms; 3.5 for Livestock Farms. For 1997 total expenditures, the relative sampling errors were as follows for the different domains estimated: at the U.S. level 3.4 percent; from 2.9 to 26.0 percent at the Regional level. The relative sampling errors for major expense items at the U.S. level typically range from 3.3 to 10.5 percent. Data from sample surveys are also influenced by non-sampling errors which are not always measurable or known. Non-sampling errors may be introduced by enumerators, respondents, questionnaire design, or field and office procedures. Efforts are made to minimize these errors and maintain survey accuracy through proper training of all individuals involved with the survey, detailed review and verification of data, and analysis of data for comparability and consistency. Index Page Expenditures by Economic Class of Farm, 1997-98 Gross Value of Sales, $250,000 and Over. . . . . . . . . . . . . . . . . . . . 6 Gross Value of Sales, $100,000 - $249,999 . . . . . . . . . . . . . . . . . . 7 Gross Value of Sales, $40,000 - $99,999 . . . . . . . . . . . . . . . . . . . 8 Gross Value of Sales, $10,000 - $39,999 . . . . . . . . . . . . . . . . . . . 9 Gross Value of Sales, Less Than $10,000 . . . . . . . . . . . . . . . . . . .10 Expenditures by Farm Production Region, 1997-98 Northeast: CT, DE, ME, MD, MA, NH, NJ, NY, PA, RI, VT . . . . . . . . . . . .11 Lake States: MI, MN, WI . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Corn Belt: IL, IN, IA, MO, OH . . . . . . . . . . . . . . . . . . . . . . . .13 Northern Plains: KS, NE, ND, SD . . . . . . . . . . . . . . . . . . . . . . .14 Appalachian: KY, NC, TN, VA, WV . . . . . . . . . . . . . . . . . . . . . . .15 Southeast: AL, FL, GA, SC . . . . . . . . . . . . . . . . . . . . . . . . . .16 Delta: AR, LA, MS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Southern Plains: OK, TX . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Mountain: AZ, CO, ID, MT, NV, NM, UT, WY . . . . . . . . . . . . . . . . . . .19 Pacific: CA, OR, WA . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20 Expenditures by Type of Farm, 1997 - 1998 Crop Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Livestock Farms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Farm Production Expenditures Region Map . . . . . . . . . . . . . . . . . . . . . .24 Footnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Major Farm Production Expenditures, U.S., 1997 and 1998 . . . . . . . . . . . . . 2-3 Major Farm Production Expenditures, U.S., 1993 - 1998 . . . . . . . . . . . . . . .21 Major Farm Production Expenditures as a Percent of Total, U.S., 1993 - 1998 . . . .22 Reliability and Estimating Procedures . . . . . . . . . . . . . . . . . . . . . 25-27 Released July 20, 1999, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture. For information on "Farm Production Expenditures Summary" call Steven R. Stockdale at 202-690-3229, office hours 7:30 a.m. to 4:00 p.m. ET. The next "Farm Production Expenditures Summary" report will be released at 3 p.m. ET on July 20, 2000. The United States Department of Agriculture (USDA) prohibits discrimination in all its programs on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (braille, large print, audiotape, etc.) should contact the USDA's TARGET Center at 202-720-2600 (voice and TDD). To file a complaint of discrimination, write USDA, Director, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, D.C., 20250-9410, or call 202-720-5964 (voice or TDD). 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