By Bradley Zwilling
Illinois FBFM Association and Department of Agricultural and Consumer Economics
University of Illinois
Not only has machinery values been increasing over time, so has the size of farms. This study compares machinery values on Illinois grain farms enrolled in Illinois Farm Business Farm Management Association (FBFM) for years 2010 and 2020. We also compare machinery value per acre during the same two time periods.
Figure 1 shows total machinery values at different acre levels for Illinois grain farms and compares 2010 to 2020. Both years show that as acres in a farming operation increased, so did the total machinery value. In looking at 2010 (the bottom line), a farmer with 1,000 acres would on average have about $460,000 of machinery. In contrast, about $660,000 would be the machinery value on average for a 1,000 acre farm in 2020 (the top line). This is about 43% increase in eleven years. When we compare other acre numbers, the amount of dollars difference increases, but the percent increase is about the same. In is interesting to note as well the size of the farm increases, the total machinery value increases at a decreasing rate. For example, when going from a 1,000 acre farm to a 2,000 acre farm, the average total machinery value increased by about $540,000 in 2020. When going from 4,000 acre farm to a 5,000 acre farm, the average total machinery value increased about $280,000 or about 50 percent of the increase from 1,000 acres to 2,000 acres in 2020.