Selected U.S. farm production expenses, 2024–26F

Livestock/poultry purchases, feed, and labor are expected to be the three largest production expense categories. In 2026, livestock and poultry purchases—the largest single category—are projected at $66.3 billion, up $5.9 billion (9.7 percent) compared with 2025. Feed expenses are forecast to continue the decline that began in 2023. In 2026, feed spending is projected at $65.6 billion, down $4.8 billion (6.8 percent) from 2025. Cash labor expenses are forecast at $53.9 billion, up $1.2 billion (2.2 percent) from the expected 2025 level; this increase is roughly in line with inflation. Among other categories, pesticide expenses (spending on agricultural chemicals and application costs) and fuel and oil expenses are projected to decline in 2026 relative to 2025, while property taxes and fees (accounting for operator’s dwellings) and electricity expenses are expected to rise.