According to USDA, the rising cost of fuel and other products helped drive U.S. farm-production expenditures to a record $260 billion in 2007. Total U.S. farm-production expenditures rose 9.3% from 2006 and nearly 30% from five years ago.

USDA’s report indicates that average production expenditures per farm increased 10% from $114,186 in 2006 to $125,648 in 2007. On average, U.S. farm expenditures for fertilizer, lime and soil jumped 26%; feed costs increased 22%; fuel costs rose 15%; and ag chemicals climbed 12%.