Agriculture Reference
In-Depth Information
Table 1.8
Farm production expenses (billion $).
Item
2008
2009
2010
2011
Farm Origin Inputs
79.8
77.0
79.9
85.1
Purchased Feed
46.9
45.0
45.2
49.7
Livestock Purchased
17.7
16.5
19.5
19.3
Seed
15.1
15.5
15.3
16.1
Manufactured Inputs
55.0
49.0
49.5
55.6
Fertilizer and Lime
22.5
20.1
18.2
20.9
Pesticides
11.7
11.5
11.1
11.9
Fuels & Oils
16.2
12.7
15.6
18.1
Electricity
4.5
4.6
4.6
4.7
Total Interest Charges
15.4
15.2
15.0
15.4
Other Operating Expenses
93.7
89.5
91.8
98.2
Repair and Maintenance
14.8
14.7
15.5
16.6
Contract and Hired Labor
29.7
28.7
28.8
30.1
Machine Hire and Custom Work
4.1
3.9
4.0
4.3
Marketing, Storage and Transportation
10.1
10.3
10.4
11.3
Miscellaneous Operating Expenses
35.0
31.9
33.2
35.9
Overhead Expenses
49.0
50.4
51.1
53.3
Depreciation
28.7
30.1
30.6
31.4
Property Taxes
10.7
10.4
10.6
10.9
Rent
9.6
9.8
9.9
11.1
Total Production Expenses
293.0
281.0
287.3
307.5
Source: McGath 2011.
Trucks, tractors, and combines are all examples of manufactured products supplied to
farmers through the input supply sector. Deere & Company is one of the oldest fi rms in
the U.S. and is a Fortune 500 company. Deere invests 17 percent of sales in research and
development, focused on bringing new and better products to the world's farmers.
At fi rst glance, the seed industry may not seem like it is an input manufacturing industry.
However, seed fi rms annually invest millions of dollars in developing and producing
or “manufacturing” hundreds of new hybrids and varieties of seed. Chemical companies
such as Syngenta and DuPont produce crop protectants that reduce weed and insect pressure,
or protect the crop from disease. Recent developments in biotechnology have led to many
products that bring these two industries together. Some crops have been modifi ed to resist
certain pests. Other crops have been modifi ed to resist a particular herbicide, making weed
control much easier. These crops have not been without controversy, and broader market
acceptance of these
genetically modifi ed organisms (GMOs)
has evolved slowly outside
the U.S.
Distribution
Farm production inputs move from the manufacturer to the farm through a very wide variety
of sales, marketing, and distribution channels. Using the technology developed by manufac-
turers also requires accurate and timely technical information, as well as timely access to the
products. This is the job of
input distributors
—individuals, companies, outlets of national
organizations, cooperatives, e-businesses, etc.—responsible for getting the products from
