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University of Illinois research says more acres are needed to make combine investments pay

A farm management specialist with the University of Illinois says increased machinery costs continue to squeeze farmers’ profits.

During a recent Illinois Soybean Association webinar, Gary Schnitkey says research shows it’s taking more acres to make new combine investments profitable.

“At 1800 acres, we’re looking at $75 versus something at 3000 in the still high $50 range.”  He says, “We’re looking at a very large difference.”

He says a new combine needs to harvest over 2500 acres for costs to be balanced, which could mean more cooperation amongst operations.

“Three 3,000-acre farms rather than having three machines having two.”  He says, “It does reduce costs, and again, we are in this cost environment where you have to look at everything.”

Schnitkey says used equipment does bring down the cost per acre, but higher repair costs typically offset that.