Let me be the first to admit that I don’t spend much time on row crop economics, as most of my work focuses on the livestock sector. Still, I find the analysis, data, and management tools in the crop world fascinating. With that in mind, are there lessons we can learn from row crops and apply to the beef cow business? I believe the answer is yes.

A recent article titled “Crop Machinery Investment” by Dr. Michael Langemeier from Purdue University’s Center for Commercial Agriculture provided updates on machinery investment.

• In 2024, machinery investment per acre was $847, $873, $807, and $668 for farms with crop acres of under 500, 500–1,000, 1,000–2,000, and 2,000+, respectively.\
• “Crop machinery investment is computed by dividing total crop machinery investment (i.e., investment in tractors, combines, and other machinery) by crop acres or harvested acres.”
• Net annual machinery investment in 2024 was $109, $70, $75, and $82 per acre for the same acreage categories.
• “Net annual investment is computed by adding machinery and titled vehicle purchases and subtracting machinery and titled vehicle sales.”
• “Net machinery investment closely follows net cash income.”

So, can we put cowboy boots on any of this and find similar threads between Midwest crops and cows in Oklahoma? My speculation is yes—at least in a general sense. First, it reinforces the concept of scale efficiency. For example, an operation with 120 cows can generally operate with the same equipment lineup (truck, tractor, etc.) as an operation with 40 cows. That means the 120-cow operation would have lower machinery investment on a per-head basis. Also, the link between net machinery investment and net cash income could apply to cattle operations in 2025. Cow-calf producers in eastern Oklahoma are expecting strong net cash incomes, and I’ve had many discussions this fall about depreciation on new or “new-to-us” equipment purchases during tax meetings.
We all agree that some level of machinery and equipment is necessary to operate, but finding the right balance between expense and efficiency is challenging. As replacement costs rise, be mindful of how those costs relate on a per-head or per-acre basis.

Langemeier, M. “Crop Machinery Investment.” Center for Commercial Agriculture, Purdue University, December 12, 2025.