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.
Tyson’s capacity cuts weaken local basis, tighten kill space, and heighten dependence on imports, signaling more volatility for producers.
December 01, 2025 11:09 AM
·
November 26, 2025 10:41 AM
Low farmer shares reflect deep consolidation across the food chain, keeping producer returns thin even as retail food prices remain high.
November 25, 2025 03:02 PM
·
Jake Charleston, with Specialty Risk Insurance, joins us now for an industry update and advice for cattle producers as they consider options for managing the risks of a murky market.
November 25, 2025 01:26 PM
·
AFBF Vice President of Public Policy and Economic Analysis, Dr. John Newton, explains the factors contributing to the growing financial strain in the ag sector and the urgent need for swift economic support.
November 25, 2025 12:40 PM
·
Tyson’s Nebraska plant closure and falling Cattle on Feed numbers send cattle markets tumbling. Analysts warn of tighter supplies, weak margins, and rising global competition.
November 25, 2025 12:05 PM
·
A regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture, prepared by RFD-TV Markets Specialist Tony St. James, for the week of Monday, November 24, 2025.
November 24, 2025 02:56 PM
·
According to November’s Cattle on Feed Report, Nebraska now leads the nation in cattle feeding as tighter supplies continue to reshape regional market power and long-term price dynamics.
November 24, 2025 11:47 AM
·
Lower U.S. and Mexican production means tighter sugar supplies and greater reliance on imports headed into 2026.
November 22, 2025 11:00 AM
·
