Farm Size May Matter Less for Profitability, Purdue Research Finds

Researchers found operating profit margins averaged about 20% regardless of acreage.

WEST LAFAYETTE, Ind. (RFD-TV) — New research from Purdue University suggests smaller crop farms may be closing the financial gap with larger operations.

Researchers analyzed farm financial data from 2007 through 2025 and found operating profit margins averaged about 20% across farms of all sizes.

Larger farms still generated more revenue relative to their assets, averaging 35% for operations with more than 2,000 acres compared to 22% for those with fewer than 500 acres.

However, researchers found that gap has been narrowing, suggesting farm size alone does not necessarily determine profitability.

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Knoxville native Neal Burnette-Irwin is a graduate from MTSU where he majored in Journalism and Entertainment Studies. He works as a digital content producer with RFD-TV and is represented by multiple talent agencies in Nashville and Chicago.


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