Farm Expenses Projected Up in 2022

The USDA is projecting a 5% increase in farm production expenses this year. And as USDA chief Economist Seth Meyer pointed out, its not just one, or two items going up.

"Most every line within those production expenses showing year-over-year increases."

Leading the list of projected increases most likely does not come as a surprise to those in farm country.

​"Fertilizer showing a 12% increase in out-lay," Meyer pointed out. "Remember, its out-lays, its not simply a spot price now versus a spot price a year ago.  Its overall out-lays, so you will add a quantity adjustment by producers.  But 12% still a pretty big year-over-year number.  And when you look at two years, its at about a 30% over a two year period."

The next highest increase in costs?  

Interest rates; those could go up 10%.  

Also, farmers will pay more for livestock, feed for the livestock and also labor, fuel, pesticides and property taxes.

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