This week’s DataPoint is brought to you by the Precision Farming Dealer Summit, coming to St. Louis Jan 5-6. To download the program and to register visit precisionsummit.com. 

DataPoint Machinery Costs Per Acre for Small & Large Producers.jpg

This chart from Michael Langemeier and from Purdue University’s Center for Commercial Agriculture illustrates the trend in machinery cost per acre for small and large corn producers. Since 2021, machinery cost per acre for producers with over 1,000 planted acres of corn or soybeans has increased 25% for corn and 22% for soybeans. There was a significant difference in machinery cost per acre for corn or soybean enterprises with less than 250 acres and more than 1000 acres over the time period. The average difference over the period was $14 for both corn and soybeans (i.e., 9.6% for corn and 15.1% for soybeans), suggesting that there are economies of scale related to machinery cost per acre.

Watch the full version of this episode of On The Record