WASHINGTON, D.C. (RFD NEWS) — U.S. farm production expenses climbed to $490.3 billion in 2025, increasing pressure on margins even as spending patterns diverged sharply between crop and livestock operations. USDA’s National Agricultural Statistics Service says total costs rose 1.9 percent from 2024.
Average spending reached $263,955 per farm, up 3.1 percent. Livestock, poultry, and related expenses became the largest category at $74.4 billion, followed by feed at $71 billion, farm services at $55 billion, and labor at $45.1 billion.
Livestock-farm expenditures jumped 11.2 percent to $255 billion. Crop-farm spending fell 6.6 percent to $235.3 billion, although fertilizer, chemicals, and seed still consumed $70.6 billion, or 30 percent of crop expenses.
Fuel costs totaled $15.6 billion. Diesel accounted for $10 billion, while propane spending increased 13.3 percent. Machinery purchases declined, but farm improvements and construction rose.
The Midwest led regional spending at $156.5 billion, followed by the Plains at $121.7 billion. Producers will watch whether higher livestock costs and uneven input prices continue squeezing 2026 returns.
