United States Department of Agriculture National Agricultural Statistics Service Economic Research Service Sp Sy 5 (98) Farm Production Expenditures 1997 Summary July 1998 Sp Sy 5 (7-98) Production Expenditures Up More than 3 Percent in 1997 U.S. farm production expenditures totaled $181.1 billion in 1997, up 3.5 percent from the revised 1996 total of $175.0 billion. The largest contributors to the increase were: livestock purchases, up 10.9 percent; seeds and plants, up 8.1 percent; tractors and self propelled farm machinery, up 8.0 percent; and labor, up 7.0 percent. The largest two expenditure categories were feed which accounted for 13.9 percent of the U.S. total production expenses and farm services which accounted for 13.4 percent of the total. The farm services category includes expense items such as custom work, utilities, marketing charges, veterinary services, transportation costs, and miscellaneous business expenses. The average expenditures per U.S. farm in 1997 were $88,216 compared to $84,977, as revised for 1996. On the average, U.S. farm operations in 1997 spent $12,276 on feed; $11,794 on farm services; $8,997 on rent; $8,915 on labor; and $6,917 on livestock and poultry purchases. Revised estimates for 1996 indicated that U.S. farms spent an average of $12,240 on feed; $11,414 on farm services; $8,889 on rent; $8,306 on labor; and $6,217 for livestock and poultry purchases. The Farm Production Region (as defined on page 22) contributing most to the total 1997 U.S. farm production expenditures was the Corn Belt with expenses of $33.4 billion, 18.5 percent of the U.S. total. Expenditures in the Corn Belt were down 1 percent from the 1996 level of $33.8 billion. For total expenditures, the Corn Belt was followed by the Pacific Region at $29.8 billion (1996 - $27.4 billion); Northern Plains $22.4 billion (1996 - $20.9 billion); Lake States $19.1 billion (1996 - $17.7 billion); and the Southern Plains at $15.8 billion (1996 - $15.8 billion). Farm Production Expenditures: Major Input Items, Total and Percent of Total, United States, 1996-97 1/ -------------------------------------------------------------------------------- Expenditure - Farm Share : 1996 : 1997 -------------------------------------------------------------------------------- :Million Dols Percent Million Dols Percent : Total Farm Production : Expenditures 2/ 3/ : 174,950 100.0 181,090 100.0 : Livestock, Poultry & : Related Expenses 4/ : 12,800 7.3 14,200 7.8 : Feed : 25,200 14.4 25,200 13.9 : Farm Services 5/ : 23,500 13.4 24,210 13.4 : Rent 6/ : 18,300 10.5 18,470 10.2 : Agricultural Chemicals 7/ : 8,500 4.9 8,800 4.9 : Fertilizer, Lime & Soil : Conditioners 7/ : 10,900 6.2 10,900 6.0 : Interest : 10,400 5.9 10,500 5.8 : Taxes (Real Estate & : Property) : 6,500 3.7 6,650 3.7 : Labor : 17,100 9.8 18,300 10.1 : Fuels : 5,800 3.3 6,000 3.3 : Farm Supplies & Repairs 8/ : 11,800 6.7 12,300 6.8 : Farm Improvements : & Construction 9/ : 5,900 3.4 6,100 3.4 : Tractors and Self-Propelled : Farm Machinery : 5,000 2.9 5,400 3.0 : Other Farm Machinery : 3,350 1.9 3,410 1.9 : Seeds & Plants 10/ : 6,200 3.5 6,700 3.7 : Trucks & Autos : 3,300 1.9 3,500 1.9 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 84,977 88,216 174,950 181,090 : Livestock, Poultry & : Related Expenses 4/ : 29.4 27.8 6,217 6,917 12,800 14,200 : Feed : 64.1 65.1 12,240 12,276 25,200 25,200 : Farm Services 5/ : 96.4 96.9 11,414 11,794 23,500 24,210 : Rent 6/ : 39.8 38.0 8,889 8,997 18,300 18,470 : Agricultural Chemicals 7/ : 54.9 55.0 4,129 4,287 8,500 8,800 : Fertilizer, Lime & Soil : Conditioners 7/ : 62.9 65.2 5,294 5,310 10,900 10,900 : Interest : 51.8 47.0 5,051 5,115 10,400 10,500 : Taxes (Real Estate & : Property) : 95.6 97.7 3,157 3,239 6,500 6,650 : Labor : 14/ 39.0 8,306 8,915 17,100 18,300 : Fuels : 88.1 89.2 2,817 2,923 5,800 6,000 : Farm Supplies & Repairs 8/ : 84.9 90.3 5,731 5,992 11,800 12,300 : Farm Improvements : & Construction 9/ : 62.7 51.5 2,866 2,972 5,900 6,100 : Tractors and Self-Propelled : Farm Machinery : 12.0 13.3 2,429 2,631 5,000 5,400 : Other Farm Machinery : 25.1 19.6 1,627 1,661 3,350 3,410 : Seeds & Plants 10/ : 51.7 53.1 3,011 3,264 6,200 6,700 : Trucks & Autos : 14.5 16.1 1,603 1,705 3,300 3,500 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Crop Farms, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 105,277 102,829 93,202 99,199 : Livestock, Poultry & : Related Expenses 4/ : 15.7 13.7 1,790 1,545 1,585 1,490 : Feed : 29.1 33.9 1,813 1,534 1,605 1,480 : Farm Services 5/ : 93.9 94.8 15,080 14,937 13,350 14,410 : Rent 6/ : 44.4 41.9 16,362 15,549 14,485 15,000 : Agricultural Chemicals 7/ : 70.6 69.6 8,285 8,023 7,335 7,740 : Fertilizer, Lime & Soil : Conditioners 7/ : 74.5 75.0 9,460 8,780 8,375 8,470 : Interest : 56.4 49.0 6,235 5,919 5,520 5,710 : Taxes (Real Estate & : Property) : 97.9 97.7 4,145 3,939 3,670 3,800 : Labor : 47.2 42.9 13,656 13,942 12,090 13,450 : Fuels : 87.8 88.7 4,179 3,970 3,700 3,830 : Farm Supplies & Repairs 8/ : 86.4 90.0 8,019 7,909 7,099 7,630 : Farm Improvements : & Construction 9/ : 47.2 43.1 2,570 2,799 2,275 2,700 : Tractors and Self-Propelled : Farm Machinery : 14.9 15.8 3,632 3,752 3,215 3,620 : Other Farm Machinery : 22.3 20.8 2,197 2,184 1,945 2,107 : Seeds & Plants 10/ : 71.2 69.9 5,738 5,929 5,080 5,720 : Trucks & Autos : 13.0 18.0 1,824 1,806 1,615 1,742 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Livestock Farms, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 69,662 75,261 81,748 81,891 : Livestock, Poultry & : Related Expenses 4/ : 48.6 40.3 9,557 11,681 11,215 12,710 : Feed : 95.6 92.7 20,107 21,799 23,595 23,720 : Farm Services 5/ : 98.5 98.8 8,649 9,007 10,150 9,800 : Rent 6/ : 36.3 34.5 3,251 3,189 3,815 3,470 : Agricultural Chemicals 7/ : 50.2 42.1 993 974 1,165 1,060 : Fertilizer, Lime & Soil : Conditioners 7/ : 58.6 56.6 2,152 2,233 2,525 2,430 : Interest : 52.5 45.2 4,159 4,402 4,880 4,790 : Taxes (Real Estate & : Property) : 97.6 97.6 2,412 2,619 2,830 2,850 : Labor : 37.6 35.6 4,269 4,457 5,010 4,850 : Fuels : 93.9 89.6 1,790 1,994 2,100 2,170 : Farm Supplies & Repairs 8/ : 92.7 90.6 4,006 4,292 4,701 4,670 : Farm Improvements : & Construction 9/ : 75.5 59.0 3,089 3,125 3,625 3,400 : Tractors and Self-Propelled : Farm Machinery : 10.7 11.1 1,521 1,636 1,785 1,780 : Other Farm Machinery : 21.6 18.4 1,197 1,198 1,405 1,303 : Seeds & Plants 10/ : 45.0 38.2 954 901 1,120 980 : Trucks & Autos : 12.2 14.3 1,436 1,616 1,685 1,758 -------------------------------------------------------------------------------- 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, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 759,481 726,884 96,606 101,255 : Livestock, Poultry & : Related Expenses 4/ : 49.7 45.6 64,756 68,306 8,237 9,515 : Feed : 61.3 58.5 133,349 123,977 16,962 17,270 : Farm Services 5/ : 100.0 100.0 95,126 89,519 12,100 12,470 : Rent 6/ : 78.8 79.0 82,390 74,602 10,480 10,392 : Agricultural Chemicals 7/ : 88.3 89.9 39,308 37,531 5,000 5,228 : Fertilizer, Lime & Soil : Conditioners 7/ : 86.0 87.6 42,296 37,832 5,380 5,270 : Interest : 88.8 86.1 34,041 31,579 4,330 4,399 : Taxes (Real Estate & : Property) : 99.2 98.8 16,140 15,284 2,053 2,129 : Labor : 88.7 86.6 98,624 98,600 12,545 13,735 : Fuels : 99.6 99.3 20,440 19,081 2,600 2,658 : Farm Supplies & Repairs 8/ : 99.7 99.4 44,701 43,697 5,686 6,087 : Farm Improvements : & Construction 9/ : 79.2 74.6 20,692 20,488 2,632 2,854 : Tractors and Self-Propelled : Farm Machinery : 32.7 34.0 18,278 18,234 2,325 2,540 : Other Farm Machinery : 46.7 43.3 11,737 11,127 1,493 1,550 : Seeds & Plants 10/ : 84.1 84.5 27,186 26,949 3,458 3,754 : Trucks & Autos : 30.1 34.6 8,270 7,954 1,052 1,108 -------------------------------------------------------------------------------- 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, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 172,173 176,900 36,208 36,459 : Livestock, Poultry & : Related Expenses 4/ : 48.3 39.5 9,748 10,674 2,050 2,200 : Feed : 66.4 65.6 18,783 18,971 3,950 3,910 : Farm Services 5/ : 99.4 100.0 22,444 23,532 4,720 4,850 : Rent 6/ : 78.5 76.7 23,300 24,745 4,900 5,100 : Agricultural Chemicals 7/ : 89.8 89.6 9,510 9,656 2,000 1,990 : Fertilizer, Lime & Soil : Conditioners 7/ : 88.6 91.0 13,314 13,489 2,800 2,780 : Interest : 84.6 79.9 11,175 11,572 2,350 2,385 : Taxes (Real Estate & : Property) : 98.5 98.1 7,608 7,666 1,600 1,580 : Labor : 72.2 66.7 12,126 11,936 2,550 2,460 : Fuels : 97.6 98.6 6,610 6,938 1,390 1,430 : Farm Supplies & Repairs 8/ : 97.9 99.6 12,078 12,567 2,540 2,590 : Farm Improvements : & Construction 9/ : 70.2 65.9 5,706 4,784 1,200 986 : Tractors and Self-Propelled : Farm Machinery : 23.7 21.5 5,563 5,754 1,170 1,186 : Other Farm Machinery : 45.1 36.6 3,804 3,557 800 733 : Seeds & Plants 10/ : 87.5 86.6 7,133 7,521 1,500 1,550 : Trucks & Autos : 24.9 30.9 3,034 3,241 638 668 -------------------------------------------------------------------------------- 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, 1996-97 1/ ------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 69,533 74,322 18,030 18,677 : Livestock, Poultry & : Related Expenses 4/ : 42.1 36.8 4,069 4,576 1,055 1,150 : Feed : 66.1 58.9 7,713 6,765 2,000 1,700 : Farm Services 5/ : 99.9 99.6 10,509 11,261 2,725 2,830 : Rent 6/ : 64.7 63.7 6,402 7,075 1,660 1,778 : Agricultural Chemicals 7/ : 80.9 81.7 3,363 3,661 872 920 : Fertilizer, Lime & Soil : Conditioners 7/ : 84.9 85.9 5,438 5,770 1,410 1,450 : Interest : 71.3 69.3 5,399 5,770 1,400 1,450 : Taxes (Real Estate & : Property) : 97.0 97.8 3,741 3,975 970 999 : Labor : 61.1 57.1 3,722 4,178 965 1,050 : Fuels : 97.9 96.8 2,970 3,263 770 820 : Farm Supplies & Repairs 8/ : 98.3 97.4 5,862 6,240 1,520 1,568 : Farm Improvements : & Contruction 9/ : 68.0 57.9 2,314 2,527 600 635 : Tractors and Self-Propelled : Farm Machinery : 14.4 18.0 2,160 2,495 560 627 : Other Farm Machinery : 29.1 28.0 1,543 1,739 400 437 : Seeds & Plants 10/ : 81.8 80.0 2,565 3,104 665 780 : Trucks & Autos : 13.2 24.3 1,658 1,787 430 449 -------------------------------------------------------------------------------- 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, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 28,612 31,406 12,741 13,445 : Livestock, Poultry & : Related Expenses 4/ : 35.9 29.4 1,893 2,009 843 860 : Feed : 63.2 61.2 2,425 2,710 1,080 1,160 : Farm Services 5/ : 98.1 98.4 4,727 5,015 2,105 2,147 : Rent 6/ : 42.1 40.7 2,032 2,079 905 890 : Agricultural Chemicals 7/ : 68.8 63.5 1,062 1,196 473 512 : Fertilizer, Lime & Soil : Conditioners 7/ : 74.7 75.2 1,909 2,149 850 920 : Interest : 53.4 45.7 2,414 2,453 1,075 1,050 : Taxes (Real Estate & : Property) : 97.6 98.5 1,844 1,986 821 850 : Labor : 42.2 41.3 1,359 1,507 605 645 : Fuels : 92.9 93.8 1,269 1,378 565 590 : Farm Supplies & Repairs 8/ : 93.0 95.4 2,513 2,721 1,119 1,165 : Farm Improvements : & Construction 9/ : 61.7 49.0 1,055 1,647 470 705 : Tractors and Self-Propelled : Farm Machinery : 12.9 15.9 1,134 1,324 505 567 : Other Farm Machinery : 21.6 20.7 797 790 355 338 : Seeds & Plants 10/ : 66.6 62.9 903 1,023 402 438 : Trucks & Autos : 12.7 14.9 1,224 1,355 545 580 -------------------------------------------------------------------------------- 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, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 11,178 10,947 11,365 11,254 : Livestock, Poultry & : Related Expenses 4/ : 27.4 20.2 605 462 615 475 : Feed : 70.7 69.0 1,188 1,128 1,208 1,160 : Farm Services 5/ : 93.9 94.6 1,820 1,861 1,850 1,913 : Rent 6/ : 19.0 17.4 349 302 355 310 : Agricultural Chemicals 7/ : 38.3 33.5 152 146 155 150 : Fertilizer, Lime & Soil : Conditioners 7/ : 48.5 47.9 452 467 460 480 : Interest : 39.1 30.3 1,225 1,183 1,245 1,216 : Taxes (Real Estate & : Property) : 97.6 97.1 1,039 1,062 1,056 1,092 : Labor : 24.1 21.8 428 399 435 410 : Fuels : 86.6 82.2 467 488 475 502 : Farm Supplies & Repairs 8/ : 83.7 83.5 920 866 935 890 : Farm Improvements : & Construction 9/ : 59.8 45.0 982 895 998 920 : Tractors and Self-Propelled : Farm Machinery : 6.9 6.7 433 467 440 480 : Other Farm Machinery : 12.1 10.5 297 342 302 352 : Seeds & Plants 10/ : 34.4 31.5 172 173 175 178 : Trucks & Autos : 7.4 9.1 625 676 635 695 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Northeast Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 80,347 85,226 11,072 11,702 : Livestock, Poultry & : Related Expenses 4/ : 35.8 30.4 3,491 4,297 481 590 : Feed : 65.8 62.5 16,546 17,480 2,280 2,400 : Farm Services 5/ : 97.4 96.2 11,430 12,527 1,575 1,720 : Rent 6/ : 37.9 30.4 2,141 2,258 295 310 : Agricultural Chemicals 7/ : 56.3 53.9 2,010 2,149 277 295 : Fertilizer, Lime & Soil : Conditioners 7/ : 71.1 58.7 3,171 3,277 437 450 : Interest : 51.8 44.5 4,071 4,224 561 580 : Taxes (Real Estate & : Property) : 96.8 98.7 3,956 4,115 545 565 : Labor : 14/ 38.4 10,913 11,493 1,504 1,578 : Fuels : 91.8 93.7 2,685 2,800 370 385 : Farm Supplies & Repairs 8/ : 93.0 96.6 7,043 7,174 971 985 : Farm Improvements : & Construction 9/ : 60.1 57.9 4,249 4,406 586 605 : Tractors and Self-Propelled : Farm Machinery : 12.2 10.9 1,807 1,959 249 269 : Other Farm Machinery : 35.7 21.6 2,097 1,930 289 265 : Seeds & Plants 10/ : 62.6 56.7 3,077 3,394 424 466 : Trucks & Autos : 14.6 17.0 1,415 1,464 195 201 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Lake State Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 80,644 87,843 17,661 19,062 : Livestock, Poultry & : Related Expenses 4/ : 24.0 28.7 4,219 5,530 924 1,200 : Feed : 54.6 53.1 10,959 11,843 2,400 2,570 : Farm Services 5/ : 93.8 95.1 9,637 10,599 2,111 2,300 : Rent 6/ : 40.9 42.2 6,918 7,189 1,515 1,560 : Agricultural Chemicals 7/ : 58.5 63.1 3,868 4,304 847 934 : Fertilizer, Lime & Soil : Conditioners 7/ : 61.3 66.7 4,795 5,276 1,050 1,145 : Interest : 56.1 56.3 5,667 5,991 1,241 1,300 : Taxes (Real Estate & : Property) : 97.8 97.3 4,542 4,691 995 1,018 : Labor : 14/ 35.2 6,484 6,774 1,420 1,470 : Fuels : 82.1 88.1 2,717 2,866 595 622 : Farm Supplies & Repairs 8/ : 80.7 92.1 7,078 7,488 1,550 1,625 : Farm Improvements : & Construction 9/ : 55.2 47.1 3,014 3,558 660 772 : Tractors and Self-Propelled : Farm Machinery : 13.9 16.8 3,114 3,396 682 737 : Other Farm Machinery : 32.8 30.2 2,226 2,373 487 515 : Seeds & Plants 10/ : 59.9 77.8 3,753 4,161 822 903 : Trucks & Autos : 8.9 17.6 1,393 1,507 305 327 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Corn Belt Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 82,194 81,350 33,782 33,435 : Livestock, Poultry & : Related Expenses 4/ : 30.4 28.4 4,793 4,866 1,970 2,000 : Feed : 60.9 60.3 9,163 8,735 3,766 3,590 : Farm Services 5/ : 97.5 97.5 7,450 7,421 3,062 3,050 : Rent 6/ : 48.1 43.2 16,368 15,718 6,727 6,460 : Agricultural Chemicals 7/ : 63.2 62.1 5,706 5,377 2,345 2,210 : Fertilizer, Lime & Soil : Conditioners 7/ : 68.4 71.5 7,410 6,959 3,045 2,860 : Interest : 60.4 54.1 4,983 4,964 2,048 2,040 : Taxes (Real Estate & : Property) : 99.2 98.4 3,512 3,577 1,444 1,470 : Labor : 14/ 34.3 3,259 3,151 1,340 1,295 : Fuels : 92.2 84.7 2,437 2,487 1,002 1,022 : Farm Supplies & Repairs 8/ : 90.2 87.5 4,577 4,684 1,881 1,925 : Farm Improvements : & Construction 9/ : 57.2 49.9 2,708 2,800 1,113 1,151 : Tractors and Self-Propelled : Farm Machinery : 18.9 15.1 2,562 2,766 1,053 1,137 : Other Farm Machinery : 25.3 25.3 1,719 1,866 706 767 : Seeds & Plants 10/ : 60.6 65.4 4,209 4,547 1,730 1,869 : Trucks & Autos : 13.8 14.1 1,232 1,314 507 540 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Northern Plains Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 112,915 122,942 20,946 22,376 : Livestock, Poultry & : Related Expenses 4/ : 38.6 34.6 14,041 17,802 2,605 3,240 : Feed : 61.8 65.1 11,057 12,088 2,051 2,200 : Farm Services 5/ : 95.3 97.5 11,914 12,692 2,210 2,310 : Rent 6/ : 61.0 62.4 18,709 19,780 3,471 3,600 : Agricultural Chemicals 7/ : 65.6 70.5 5,159 5,659 957 1,030 : Fertilizer, Lime & Soil : Conditioners 7/ : 62.8 70.6 7,709 8,242 1,430 1,500 : Interest : 73.2 64.2 7,601 7,830 1,410 1,425 : Taxes (Real Estate & : Property) : 97.4 96.8 5,221 5,407 969 984 : Labor : 14/ 40.5 3,962 4,324 735 787 : Fuels : 91.2 96.8 4,541 4,761 842 867 : Farm Supplies & Repairs 8/ : 86.3 95.3 8,054 8,544 1,494 1,555 : Farm Improvements : & Construction 9/ : 68.3 48.6 2,615 2,692 485 490 : Tractors and Self-Propelled : Farm Machinery : 14.8 19.9 3,224 3,549 598 646 : Other Farm Machinery : 36.7 27.7 2,776 2,802 515 510 : Seeds & Plants 10/ : 59.9 68.1 3,790 4,033 703 734 : Trucks & Autos : 25.4 27.0 2,453 2,632 455 479 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Appalachian Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 43,881 45,425 12,857 13,264 : Livestock, Poultry & : Related Expenses 4/ : 19.4 25.6 3,585 4,127 1,050 1,205 : Feed : 61.8 72.7 9,898 10,616 2,900 3,100 : Farm Services 5/ : 97.0 97.6 5,283 5,651 1,548 1,650 : Rent 6/ : 28.7 25.9 2,949 2,671 864 780 : Agricultural Chemicals 7/ : 53.8 57.0 1,502 1,541 440 450 : Fertilizer, Lime & Soil : Conditioners 7/ : 75.5 71.2 2,627 2,483 770 725 : Interest : 39.2 33.9 2,091 2,055 613 600 : Taxes (Real Estate & : Property) : 94.3 98.9 1,218 1,236 357 361 : Labor : 14/ 38.8 3,549 3,647 1,040 1,065 : Fuels : 90.3 88.8 1,451 1,473 425 430 : Farm Supplies & Repairs 8/ : 82.0 87.2 2,655 2,705 778 790 : Farm Improvements : & Construction 9/ : 68.3 49.5 1,586 1,644 465 480 : Tractors and Self-Propelled : Farm Machinery : 8.2 6.8 1,809 1,849 530 540 : Other Farm Machinery : 26.3 12.5 1,119 993 328 290 : Seeds & Plants 10/ : 53.3 54.5 1,075 1,137 315 332 : Trucks & Autos : 10.7 10.0 1,399 1,500 410 438 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Southeast Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 81,668 79,692 12,209 11,914 : Livestock, Poultry & : Related Expenses 4/ : 24.8 21.8 3,492 2,943 522 440 : Feed : 64.0 65.1 16,054 13,378 2,400 2,000 : Farm Services 5/ : 95.8 94.2 11,191 11,304 1,673 1,690 : Rent 6/ : 29.1 23.9 3,010 2,809 450 420 : Agricultural Chemicals 7/ : 57.8 41.1 4,962 5,284 742 790 : Fertilizer, Lime & Soil : Conditioners 7/ : 78.2 72.6 5,507 5,686 823 850 : Interest : 35.1 32.8 3,979 3,746 595 560 : Taxes (Real Estate & : Property) : 95.8 95.2 2,186 2,234 327 334 : Labor : 14/ 34.8 11,779 12,241 1,761 1,830 : Fuels : 90.2 87.0 2,522 2,609 377 390 : Farm Supplies & Repairs 8/ : 82.8 86.9 5,097 5,418 762 810 : Farm Improvements : & construction 9/ : 64.6 47.2 3,140 2,943 470 440 : Tractors and Self-Propelled : Farm Machinery : 9.0 10.3 2,398 2,475 359 370 : Other Farm Machinery : 15.5 10.3 1,093 1,037 163 155 : Seeds & Plants 10/ : 50.8 38.6 3,308 3,458 495 517 : Trucks & Autos : 7.5 14.1 1,338 1,438 200 215 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Delta Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 82,833 82,098 9,443 9,195 : Livestock, Poultry & : Related Expenses 4/ : 20.1 25.2 6,807 5,893 776 660 : Feed : 72.5 69.4 16,998 16,446 1,938 1,842 : Farm Services 5/ : 95.5 91.6 13,539 11,161 1,543 1,250 : Rent 6/ : 24.0 36.8 6,482 7,589 739 850 : Agricultural Chemicals 7/ : 35.8 38.6 5,882 6,652 671 745 : Fertilizer, Lime & Soil : Conditioners 7/ : 59.9 64.3 5,132 4,643 585 520 : Interest : 36.5 34.6 3,684 3,616 420 405 : Taxes (Real Estate & : Property) : 84.4 89.2 1,347 1,402 154 157 : Labor : 14/ 36.5 5,003 5,446 570 610 : Fuels : 89.4 95.3 2,989 3,170 341 355 : Farm Supplies & Repairs 8/ : 73.4 88.4 4,932 5,402 562 605 : Farm Improvements : & Construction 9/ : 56.6 45.4 1,798 1,607 205 180 : Tractors and Self-Propelled : Farm Machinery : 7.4 8.8 2,671 2,938 305 329 : Other Farm Machinery : 11.2 15.1 1,386 1,455 158 163 : Seeds & Plants 10/ : 45.4 40.4 2,123 2,375 242 266 : Trucks & Autos : 8.2 13.4 1,785 1,991 204 223 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Southern Plains Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 57,036 56,777 15,799 15,784 : Livestock, Poultry & : Related Expenses 4/ : 34.6 27.7 8,123 8,903 2,250 2,475 : Feed : 80.5 84.7 9,565 8,165 2,650 2,270 : Farm Services 5/ : 95.5 97.8 8,231 8,309 2,280 2,310 : Rent 6/ : 38.4 34.4 4,813 4,568 1,333 1,270 : Agricultural Chemicals 7/ : 36.9 38.9 1,798 1,727 498 480 : Fertilizer, Lime & Soil : Conditioners 7/ : 44.6 54.1 3,148 2,770 872 770 : Interest : 47.9 43.5 3,289 3,165 911 880 : Taxes (Real Estate & : Property) : 93.1 99.3 1,800 1,835 499 510 : Labor : 14/ 40.8 3,592 3,831 995 1,065 : Fuels : 76.9 87.1 2,498 2,594 692 721 : Farm Supplies & Repairs 8/ : 81.4 89.7 3,304 3,496 915 972 : Farm Improvements : & Construction 9/ : 61.8 57.1 1,892 1,950 524 542 : Tractors and Self-Propelled : Farm Machinery : 6.4 12.9 1,319 1,529 366 425 : Other Farm Machinery : 19.9 16.1 859 935 238 260 : Seeds & Plants 10/ : 32.2 28.9 1,208 1,320 335 367 : Trucks & Autos : 16.5 18.3 1,484 1,550 411 431 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Mountain Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 119,649 125,339 13,820 14,602 : Livestock, Poultry & : Related Expenses 4/ : 46.8 35.2 12,035 13,305 1,390 1,550 : Feed : 68.1 64.7 17,377 18,455 2,007 2,150 : Farm Services 5/ : 98.4 99.1 18,658 19,485 2,155 2,270 : Rent 6/ : 51.0 52.7 10,363 10,472 1,197 1,220 : Agricultural Chemicals 7/ : 57.4 59.8 3,269 3,519 378 410 : Fertilizer, Lime & Soil : Conditioners 7/ : 46.5 50.9 5,745 6,009 664 700 : Interest : 66.2 59.1 8,208 8,069 948 940 : Taxes (Real Estate & : Property) : 97.7 97.2 3,736 3,785 432 441 : Labor : 14/ 41.7 12,575 13,820 1,452 1,610 : Fuels : 91.9 86.8 4,338 4,472 501 521 : Farm Supplies & Repairs 8/ : 88.9 91.9 8,000 8,120 924 946 : Farm Improvements : & Construction 9/ : 67.1 51.3 3,645 3,734 421 435 : Tractors and Self-Propelled : Farm Machinery : 14.4 12.8 3,503 3,751 405 437 : Other Farm Machinery : 25.6 16.5 2,312 2,060 267 240 : Seeds & Plants 10/ : 53.0 43.7 2,918 3,176 337 370 : Trucks & Autos : 20.9 22.4 2,667 2,773 308 323 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Farms Reporting, Average per Farm, and Total, Pacific Region, United States, 1996-97 1/ -------------------------------------------------------------------------------- : Farms : Average : Total : Reporting 11/ : per Farm 12/ : Expenditures Expenditure - Farm Share :--------------------------------------------------- : 1996 : 1997 : 1996 : 1997 : 1996 : 1997 -------------------------------------------------------------------------------- : -- Percent -- --- Dollars --- Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 174,835 188,933 27,362 29,757 : Livestock, Poultry & : Related Expenses 4/ : 27.0 21.0 5,317 5,333 832 840 : Feed : 45.4 45.1 17,946 19,543 2,809 3,078 : Farm Services 5/ : 98.9 99.7 34,141 35,937 5,343 5,660 : Rent 6/ : 33.2 29.5 10,923 12,698 1,709 2,000 : Agricultural Chemicals 7/ : 67.5 55.1 8,601 9,244 1,346 1,456 : Fertilizer, Lime & Soil : Conditioners 7/ : 55.9 59.0 7,821 8,762 1,224 1,380 : Interest : 50.3 41.9 10,565 11,238 1,654 1,770 : Taxes (Real Estate & : Property) : 97.0 99.8 4,990 5,143 781 810 : Labor : 14/ 56.6 40,146 44,381 6,283 6,990 : Fuels : 93.4 93.5 4,188 4,368 655 688 : Farm Supplies & Repairs 8/ : 92.2 94.5 12,543 13,251 1,963 2,087 : Farm Improvements : & Construction 9/ : 73.9 61.8 6,213 6,381 972 1,005 : Tractors and Self-Propelled : Farm Machinery : 13.1 17.1 2,907 3,238 455 510 : Other Farm Machinery : 20.5 12.1 1,265 1,556 198 245 : Seeds & Plants 10/ : 42.2 36.1 5,098 5,562 798 876 : Trucks & Autos : 21.6 12.0 1,955 2,051 306 323 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Total, United States, 1992-97 1/ -------------------------------------------------------------------------------- : : : : : : Expenditure - Farm Share : 1992 : 1993 : 1994 : 1995 : 1996 : 1997 : : : : : : -------------------------------------------------------------------------------- : Million Dollars : Total Farm Production : Expenditures 2/ 3/ :145,030 155,160 160,670 167,800 174,950 181,090 : Livestock, Poultry & : Related Expenses 4/ : 14,200 16,200 15,200 15,000 12,800 14,200 : Feed : 20,100 21,400 22,600 23,800 25,200 25,200 : Farm Services 5/ : 18,070 21,020 23,000 23,800 23,500 24,210 : Rent 6/ : 14,830 14,780 15,400 16,000 18,300 18,470 : Agricultural Chemicals 7/ : 6,450 6,700 7,200 7,700 8,500 8,800 : Fertilizer, Lime & Soil : Conditioners 7/ : 8,300 8,370 9,150 10,000 10,900 10,900 : Interest : 9,600 9,300 9,450 10,300 10,400 10,500 : Taxes (Real Estate & : Property) : 5,720 5,930 6,200 6,400 6,500 6,650 : Labor : 13,700 14,700 15,000 16,000 17,100 18,300 : Fuels : 5,070 5,090 5,100 5,500 5,800 6,000 : Farm Supplies & Repairs 8/ : 9,040 10,120 10,800 11,500 11,800 12,300 : Farm Improvements : & Construction 9/ : 4,300 5,650 5,400 5,200 5,900 6,100 : Tractors and Self-Propelled : Farm Machinery : 4,180 4,440 4,610 4,750 5,000 5,400 : Other Farm Machinery : 4,000 3,610 3,360 3,100 3,350 3,410 : Seeds & Plants 10/ : 4,900 5,150 5,360 5,450 6,200 6,700 : Trucks & Autos : 2,300 2,500 2,560 2,800 3,300 3,500 -------------------------------------------------------------------------------- See footnotes on page 23. Farm Production Expenditures: Major Input Items, Percent of Total, United States, 1992-97 1/ -------------------------------------------------------------------------------- : : : : : : Expenditure - Farm Share : 1992 : 1993 : 1994 : 1995 : 1996 : 1997 : : : : : : -------------------------------------------------------------------------------- : Million Dollars : Total Farm Production : Expenditures 2/ 3/ : 100.0 100.0 100.0 100.0 100.0 100.0 : Livestock, Poultry & : Related Expenses 4/ : 9.8 10.4 9.5 8.9 7.3 7.8 : Feed : 13.9 13.8 14.1 14.2 14.4 13.9 : Farm Services 5/ : 12.5 13.5 14.3 14.2 13.4 13.4 : Rent 6/ : 10.2 9.5 9.6 9.5 10.5 10.2 : Agricultural Chemicals 7/ : 4.4 4.3 4.5 4.6 4.9 4.9 : Fertilizer, Lime & Soil : Conditioners 7/ : 5.7 5.4 5.7 6.0 6.2 6.0 : Interest : 6.6 6.0 5.9 6.1 5.9 5.8 : Taxes (Real Estate & : Property) : 3.9 3.8 3.9 3.8 3.7 3.7 : Labor : 9.4 9.5 9.3 9.5 9.8 10.1 : Fuels : 3.5 3.3 3.2 3.3 3.3 3.3 : Farm Supplies & Repairs 8/ : 6.2 6.5 6.7 6.9 6.7 6.8 : Farm Improvements : & Construction 9/ : 3.0 3.6 3.4 3.1 3.4 3.4 : Tractors and Self-Propelled : Farm Machinery : 2.9 2.9 2.9 2.8 2.9 3.0 : Other Farm Machinery : 2.8 2.3 2.1 1.8 1.9 1.9 : Seeds & Plants 10/ : 3.4 3.3 3.3 3.2 3.5 3.7 : Trucks & Autos : 1.6 1.6 1.6 1.7 1.9 1.9 -------------------------------------------------------------------------------- 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 or 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. 14/ Not available. 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 17,200 farms and ranches contacted in February through April 1998 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 1996 and 1997 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 1992 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 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; from 4.1 to 5.9 at the U.S. Economic Sales Class level; 5.0 for Crop Farms; 5.2 for Livestock Farms. For 1996 total expenditures, the relative sampling errors were as follows for the different domains estimated: at the U.S. level 3.0 percent; from 6.5 to 15.1 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, 1996-97 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, 1996-97 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 Farm Production Expenditures Region Map . . . . . . . . . . . . . . 24 Footnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Major Farm Production Expenditures, U.S., 1996 and 1997 . . . . . . 2-3 Major Expenditure Items by Type of Farm, U.S., 1996 and 1997 Crop Farms . . . . . . . . . . . . . . . . . . . . . . . . . 4 Livestock Farms . . . . . . . . . . . . . . . . . . . . . . . 5 Major Farm Production Expenditures, U.S., 1992 - 1997 . . . . . . . 21 Major Farm Production Expenditures, Percent of Total, U.S., 1992-97 22 Reliability and Estimating Procedures . . . . . . . . . . . . . . . 25-27 Released July 20, 1998, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, U.S. Department of Agriculture. For information on "Farm Production Expenditures 1997 Summary" call Brad Parks at 202-690-3229, office hours 7:30 a.m. to 4:00 p.m. ET. The next "Farm Production Expenditures" report will be released at 3 p.m. ET on July 20, 1999. 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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