Good news for ranch owners and people looking for ranches for sale, farm production expenses have dropped for the first time in a quarter century.
According to a report released late last year by the U.S. Department of Agriculture’s National Agricultural Statistics Service, U.S. farm production expenditures decreased 6.4 percent, or nearly $20 billion, in 2009 after a record-setting high in 2008. Gas prices seem to be the determining factor. In addition to impacting the cost of farm vehicles, gas prices also impact the cost of fuel, fertilizer and agricultural chemicals.
New statistics will be available in fall 2011, comparing 2009 to 2010, to see if the drop continues.