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Costs of Production

USDA is required to develop annual estimates of the costs of producing wheat, feed grains, cotton, and milk. ERS also produces estimates for soybeans, rice, cow-calf, hogs and other major crops and livestock. Cost estimates are used for program adjustments and policy analysis, and ERS uses the data for research in such areas as farm structure and performance, technology adoption, and international competitiveness


Spotlights

Commodity Cost and Return Data—USDA has estimated annual production costs and returns and published accounts for major field crop and livestock enterprises since 1975. Estimated production costs and returns are based on producer surveys conducted every 4-8 years for each commodity and updated each year with estimates of annual price, acreage, and production changes.

Monthly Milk Cost of Production Estimates—Congress included language in USDA's FY 2003 appropriation that strongly urged USDA to make available monthly milk costs of production (COP) in various areas of the United States. To comply with this request, ERS has begun reporting monthly milk COP by State, where sufficient data support a State estimate. Estimates are available starting from January 2003.

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