Farm Expenses Remain Flat In 2019

The USDA expects when we close the finical books on 2019, they will show that farm income increased about 10% year-over-year, thanks primarily to government trade aid payments, as well as total expenses remaining flat.  USDA's Chief Economist Rob Johansson said  total production expenses will end the year higher than 2018 but only by two tenths of one percent; which is pretty much flat.

And it's not because input prices have gone down, but some other factors.  First, as commodity prices have dropped, Johansson noted, "Farmers have been doing a good job trying to find where they can be efficient and have been tightening their belts."

Plus, back in March, farmers indicated they would plant fewer acres this year thanks to terrible weather at planting time and some producers decided not to plant at all.  And so farmers have spent less for fuel, seeds, pesticides, but more on property taxes, rent and feed.

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