Machinery costs on Illinois grain farms have increased through time. Costs increase more rapidly during high income periods as producers make machinery investments and manage their taxable income. The current, low-return environment has farm businesses seeking cost reduction strategies. Appropriately sizing the operation’s machinery complement and delaying unnecessary capital purchases will help preserve financial resources during low return periods. Lower per acre power costs are also positively associated with more profitable farms. But, machinery cost management is a continuous process, not a one-and-done decision.
