News
Ag machinery costs up across the board
University of Illinois Farmdoc leaders have done a detailed comparison of new machinery costs this year compared to 2019.
“We’re seeing explosion in cost all over the board,” says farm management professor Gary Schnitkey says interest rates are helping on overhead costs.
“We are at historically low interest rates and that is going to keep the interest portion of our overhead at a lower level. If that ever begins to go up our costs will go up.”
Dale Lattz, research associate, says tells farmers the key to managing higher machinery costs is “To match the machinery compliment size to your acres. More acres lowers overhead costs.”
Smaller farms, he says, should consider having work custom done instead of owning their own machinery.
