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
January 02, 2025 12:15 PM
·
January 02, 2025 11:22 AM
·
Rural areas across the United States are experiencing significant shortages of attorneys, CPAs and other tax professionals, creating “legal deserts” that hinder farmers and ranchers’ access to essential business services.
December 31, 2024 11:49 AM
·
RFD-TV Legal Expert Roger McEowen with Kansas’ Washburn School of Law breaks it down in his latest Firm to Farm blog post.
December 27, 2024 10:03 AM
·
December 19, 2024 10:17 AM
John Deere is cutting 100 positions from its Waterloo Works plant in 2025, and Butterball will cut 200 positions in Jonesboro, Ark.
December 09, 2024 11:41 AM
·
RanchHER Jessie Jarvis is a third-generation Idaho cattle rancher and an esteemed figure in the ag industry and Western world. She seamlessly balances her roles as a business owner, influencer, podcast host, public speaker, rancher, wife and mother.
December 03, 2024 11:44 AM
·
Legal issues can arise for farmers and ranchers when conducting business informally or in another state. RFD-TV Ag Law & Tax Expert Roger McEowen explores both topics in his latest Firm to Farm blog post.
December 03, 2024 11:11 AM
·
November 20, 2024 06:13 PM
