Average costs per acre of producing the major crops increased 1.9 percent from 1981 to 1982. Per unit crop production costs declined because of record yields and lower levels of inflation and interest rates in 1982. Production costs for cattle, hogs, and sheep declined 2.4 percent. Milk production costs per hundredweight decreased 1 percent. Agricultural chemical and machinery price increases led to increased per acre production costs, while fuel and feed costs declined. The costs of production figures are presented in a new format and are calculated using a revised method for measuring the costs and returns of producing major agricultural commodities.