NASHVILLE, TENN. (RFD-TV) — Crop machinery investment patterns show strong economies of scale even as new equipment sales slow sharply across North America, signaling a cautious reset in farm capital spending.
Analysis from the Center for Commercial Agriculture at Purdue University shows that larger crop farms continue to invest less per acre in machinery than smaller operations, while recent data from the Association of Equipment Manufacturers indicate weakening near-term demand for tractors and combines.
Purdue research tracking 2007 through 2024 shows that farms exceeding 2,000 acres averaged about $668 per acre in machinery investment in 2024, compared with more than $800 per acre for smaller farms. Net annual machinery investment also declines with size, reflecting scale advantages that lower depreciation, interest, and machinery costs per acre over time.
At the same time, AEM reports U.S. tractor sales fell nearly 20 percent in November, while combine sales dropped more than 35 percent from a year earlier. The slowdown suggests producers are delaying major purchases as margins tighten, despite longer-term needs for efficiency and replacement.
Together, the data point to disciplined spending rather than a collapse in investment.
USDA data indicates that 13.7 percent of U.S. households experienced food insecurity in 2024, the highest rate since 2014, even as most households remained food secure.
January 05, 2026 03:58 PM
·
Weather, Tight Supplies, and Planning Shape Farm Decisions
January 05, 2026 03:23 PM
·
Bigger cows must wean proportionally heavier calves to justify higher ownership costs.
January 05, 2026 03:08 PM
·
Improving consumer confidence supports baseline food and fuel demand, but cautious spending limits upside potential for ag markets in 2026.
January 05, 2026 03:00 PM
·
Strong ethanol production and export trends continue to support corn demand despite seasonal fuel consumption softness.
January 05, 2026 02:49 PM
·
Cotton demand depends on demonstrating performance and reliability buyers can rely on, not messaging alone.
January 05, 2026 02:41 PM
·
Shaun Haney, Host of
RealAg Radio on Rural Radio SiriusXM Channel 147, joined us with his 2026 cattle market outlook and insights on beef prices.
January 05, 2026 10:41 AM
·
High ownership does not always translate into high output, underscoring the importance of structural differences in understanding state-level farm performance.
December 28, 2025 03:00 PM
·
Record yields are cushioning production declines, but softer prices underscore the importance of cost control and market timing for vegetable growers.
December 28, 2025 08:00 AM
·
