URBANA, IL – A recent study by the University of Illinois shows that larger farms in Illinois don’t always have lower costs per acre. Data from Illinois Farm Business Farm Management, averaged over 2021 to 2024, reveals regional and size-based differences in crop and equipment expenses.
In northern Illinois, crop costs tend to decline on farms larger than 4,000 acres, especially for fertilizer and pesticides. Central Illinois farms see little change in total crop costs with size, though fertilizer and pesticide expenses drop on bigger farms. Southern Illinois farms experience rising crop costs up to 4,000 acres, then a decrease for larger farms.
Power and equipment costs also vary. Northern Illinois farms see increased machine hire and fuel expenses with size but reduced repair and depreciation costs on the largest farms. Central Illinois shows rising machine hire and depreciation costs as farms grow. In southern Illinois, machinery repairs fall with larger acreage, but machine hire costs increase above 4,000 acres.
The study emphasizes that cost efficiencies depend on region and farm management. Farmers are encouraged to analyze their own records to find strategies that improve cost control and long-term profitability.
Attribution: Bradley Zwilling, University of Illinois, farmdoc daily, July 18, 2025.