Mechanization and technological advancement has been the cornerstone of agricultural prosperity in the United States and has served as a flagship to the rest of the world. Farm machinery and equipment sales for the three largest manufactures in 2011 reached nearly $60 billion and higher sales are projected for the future. Many factors have been attributed to this increase in sales including high commodity prices, low interest rates, and favorable government policies toward agricultural producers. This study will seek to model producer production expenses on farm machinery and equipment and decipher which factors are significant for explaining demand for farm machinery.