NASHVILLE, Tenn. (RFD-TV) — Crop machinery costs remain a major driver of per-acre expenses, with farm size and profitability creating wide differences across operations. Analysis from farmdoc daily, led by Michael Langemeier of Purdue University’s Center for Commercial Agriculture, shows larger crop farms continue to hold cost advantages, while high-return operations consistently manage machinery expenses more efficiently.
In 2024, average machinery costs for corn were about $185 per acre on farms under 250 acres, compared to roughly $178 per acre on farms exceeding 1,000 acres. Soybean machinery costs showed greater variation, averaging about $122 per acre for small farms and $108 per acre for large operations. Similar cost advantages appeared across mixed corn-soybean rotations.
Profitability differences were even more pronounced. Farms in the lowest 20 percent of net returns faced machinery costs roughly $95 per acre higher for corn and $55 higher for soybeans than farms in the top 20 percent. The analysis cautions that lower costs may sometimes reflect older equipment, raising questions about long-term sustainability.
Long-term data from 2007 to 2024 show machinery costs have risen sharply since 2021, while economies of scale have remained consistent.
LEARN MORE: https://farmdocdaily.illinois.edu/
Farm-Level Takeaway: Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.
Tony St. James, RFD-TV Markets Specialist
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