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.
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