According to a newly released USDA National Agricultural Statistics Service (NASS) report, the national average farm production expenditure rose 3.1% to $263,955 per farm.

At the heart of the national agricultural economy, the Midwest region contributed the most to total expenditures, accounting for $156.5 billion—or 31.9% of all expenses nationwide—climbing from $149.4 billion the previous year.

The Big Four Cost Drivers

Nationwide, production costs remain heavily concentrated in just a few key categories. The four largest expenditure items totaled $245.5 billion, consuming 50.1% of all money spent by producers last year:

1. Livestock, poultry, and related expenses: $74.4 billion (15.2%)

2. Feed: $71.0 billion (14.5%)

3. Farm services: $55.0 billion (11.2%)

4. Labor: $45.1 billion (9.2%)

While feed costs saw a welcome dip from $73.1 billion in 2024, livestock and related expenses surged significantly, jumping from $53.5 billion to $74.4 billion as producers navigated shifting market dynamics.