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
Chris McGovern from Connected Nation joined us Tuesday to break down the findings and discuss their implications for rural America.
September 30, 2025 01:12 PM
·
Gov. Gavin Newsom has until October 12 to sign a bill passed by the California state legislature allowing E15 sales.
September 30, 2025 12:59 PM
·
The Final Grain Stocks Report may be the last key figures we see if a government shutdown halts future updates.
September 30, 2025 12:25 PM
·
The Senate failed to pass a continuing resolution that had been approved by the House the previous week. They could take it up again today, but it would take seven democrats to end the stalemate.
September 30, 2025 11:26 AM
·
Livestock and government payments provide a boost, but crop receipts and rising expenses keep pressure on margins. Strong financial planning remains key in a volatile environment.
September 30, 2025 10:45 AM
·
The total value of the U.S. potato crop was $4.60 billion in 2024, representing an 8% decrease from the previous year.
September 29, 2025 06:00 PM
·
Crop-specific shifts and strong prices highlight the variability of this year’s fruit and tree nut harvest, according to USDA data.
September 29, 2025 05:11 PM
·
The decline in production marks the second consecutive year of contraction in the U.S. turkey industry.
September 29, 2025 05:05 PM
·
The USDA noted that peanut edible utilization season-to-date is down 3% on the year, despite overall stocks increasing.
September 29, 2025 04:55 PM
·
