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
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
·
“Those could’ve easily been our beans going over there. It goes to show that if that opportunity is there, China would be willing to buy.”
September 29, 2025 03:59 PM
·
RFD-TV Farm Legal and Taxation expert, Roger McEowen, with the Washburn School of Law, joined us Monday to break down the changes and explain what producers should know.
September 29, 2025 01:57 PM
·
North Dakota Farmers Union (NDFU) President Mark Watne joined us Monday to share his perspective on the America First Trade Promotion Program and potential implications for producers.
September 29, 2025 01:38 PM
·
A booming butterfat market is good for some dairy products but threatens efficiency and margins for cheesemakers unless protein levels catch up
September 29, 2025 12:53 PM
·
Duane Simpson, CEO of the National Council of Farmer Cooperatives (NCFC), joined us in Monday’s Market Day Report to share his perspective on the USDA’s plan and potential impact on producers.
September 29, 2025 12:17 PM
·
Land values are increasing faster than farm income, making it more challenging for young and beginning farmers to expand, but supporting equity for current landowners.
September 29, 2025 09:58 AM
·
Beginning Farmers and Ranchers, Crop Insurance, and a Business Planning Complication
September 28, 2025 01:56 PM
·
Smaller flocks and lower lay rates are pressuring table egg supplies, even as hatchery activity edges higher.
September 26, 2025 04:58 PM
·
