Machinery Costs Highlight Scale Advantages for Crop Farms

Benchmark machinery costs against those of similar-sized, high-performing operations to inform equipment and investment decisions.

soy-harvesting-by-combines-in-the-field-agricultural-machinery-in-operation-SBI-300925815 (1).jpg

Market Day Report

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
Related Stories
The National Milk Producers Federation (NMPF) says recent wins in markets like Malaysia and Cambodia help farmers focus on production rather than trade barriers.
Kubota President Alex Woods discusses the “Geared to Give” program, the company’s commitment to those who served, and how the initiative continues to grow and impact veterans.
Export strength is concentrated in corn and wheat, while soybeans and sorghum lag, keeping basis and logistics dynamics highly commodity-specific into late fall.
Pasture, Rangeland and Forage (PRF) interval selection—not just participation—drives protection levels as rainfall patterns become less predictable across the South.
If the House concurs and the President signs, USDA services and farm-bill programs resume at full speed with authorities extended for another year.
A smaller U.S. turkey flock and resurgent avian flu have tightened supplies, driving prices higher even as other key holiday foods show mixed trends.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Farmers face tighter barge capacity and higher freight costs during peak harvest.
Bigger-than-expected corn and wheat stocks are bearish for prices, while soybean figures were neutral. Farmers may face additional price pressure as harvest accelerates.
Taiwan’s pledge to expand imports strengthens export prospects for U.S. row crops, livestock products, and specialty commodities, while the USDA’s broader trade push seeks to diversify farm markets globally.
Farmers will need to closely monitor forecasts if the regulatory changes are implemented, as temperature cutoffs will replace fixed spray dates.
With China’s pullback, U.S. sorghum producers must broaden their export markets. Building connections now could help stabilize prices and demand for the upcoming larger crop.
Higher domestic rail tariffs and mixed capacity shifts will influence grain movement this harvest. Strong corn exports provide momentum, but logistics costs remain a critical factor.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Featuring members of Congress, federal and state officials, ag and food leaders, farmers, and roundtable panelists for debates and discussions.