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.
Farm CPA Paul Neiffer has developed a detailed calculator to help producers navigate the program’s requirements. He joined us on Thursday’s Market Day Report to explain how it works.
December 04, 2025 01:20 PM
·
Buying a real Christmas tree directly supports U.S. farmers facing rising import competition, long production cycles, and weather-driven risks.
December 04, 2025 11:02 AM
·
Milk output is rising, but steep drops in Class I–IV prices are tightening margins heading into 2026.
December 04, 2025 07:00 AM
·
Tight cattle supplies continue to drive lower beef output despite heavier weights.
December 04, 2025 05:00 AM
·
Weaker U.S. dairy prices come as value-added exports expand and ingredient inventories tighten, creating mixed market signals for producers.
December 03, 2025 06:52 PM
·
Kip Eideberg with the Association of Equipment Manufacturers details its campaign spotlighting the people who build equipment vital to farming and food manufacturing.
December 03, 2025 03:24 PM
·
Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.
December 03, 2025 01:52 PM
·
While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
December 03, 2025 01:36 PM
·
December 02, 2025 11:38 AM
