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.
As domestic production and blending slowed, export demand remained a clear bright spot.
January 11, 2026 12:00 PM
·
Protein markets are fragmenting. Beef is supply-driven and more structurally expensive, whereas pork and poultry remain price-competitive.
January 10, 2026 07:00 AM
·
Reducing mental stress and focusing on controllable actions can improve decision-making in high-pressure environments, according to Hollywood actor and former Calif Gov. Arnold Schwarzenegger.
January 09, 2026 03:59 PM
·
Tight fed supplies shift margin risk to packers, strengthening cattle price leverage but increasing volatility.
January 09, 2026 03:36 PM
·
Expanding chicken supplies are likely to keep prices under pressure in early 2026 despite steady demand growth.
January 09, 2026 11:00 AM
·
The “Wild, Wild West” of Taxes
January 09, 2026 09:00 AM
·
Reduced winter placements indicate tighter fed cattle supplies and greater leverage during peak-demand months.
January 09, 2026 06:00 AM
·
Farmer Bridge payments are being used primarily to reduce debt and protect cash flow, not drive new spending. Curt Blades with the Association of Equipment Manufacturers joined us to provide insight into the ag equipment market and the factors influencing sales.
January 08, 2026 08:00 AM
·
Rail strength is helping stabilize grain movement, but river and export slowdowns continue to limit overall logistics momentum.
January 08, 2026 06:00 AM
·
