Iowa farm expenditures see increase in 2014

Iowa farm production expenditures hit $32 million last year, up 7 percent from $29.7 million in 2013, according to the U.S. Department of Agriculture National Agricultural Statistics Service.

Feed expense for livestock, which rose 23 percent to $6.21 billion from $5.1 million in 2013, represented the largest single production expense for Iowa farmers in 2014. It accounted for 19 percent of the total.

Livestock and poultry purchases were the second-largest expense, totaling $5.50 billion and 17 percent of production expenditures. The category rose 22 percent from $4.5 million in 2013.

Rent expense rose 2 percent to $4.18 billion last year, from $4.1 million in 2013, and accounted for 13 percent of the total.

The largest percentage increases from last year were for miscellaneous capital expenses, up 60 percent; taxes, up 33 percent; and labor, up 26 percent.

Miscellaneous capital expenses includes all crop custom work, veterinary custom services, transportation costs, marketing charges, insurance, leasing of machinery and equipment, utilities, general and other business expenses.

Spending declined for agricultural chemicals, fertilizer, lime and soil conditioners, farm improvements and construction, tractors and self-propelled farm machinery, seeds and plants, trucks and cars, and other farm machinery.

The decline in purchases of tractors, combines and other farm machinery has led to layoffs at Deere & Co., Kinze and other agriculture equipment makers.

Sales of four-wheel-drive farm tractors fell 44.6 percent in June from the same month in 2014, according to the Association of Equipment Manufacturers, a Milwaukee-based trade association for companies that manufacture equipment for agriculture, construction, mining, and utility. Self-propelled combine sales were 41.7 percent lower in June than in the same month of 2014.