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Cost Management: Harvest Operations

Krista Swanson, Gary Schnitkey, Nick Paulson, Jonathan Coppess and, Carl Zulauf (September, 2020)

Summary

Combines are the largest cost machinery item on most Midwest grain farms. As such, periodically evaluating whether owning or out-sourcing combining is prudent, particularly at the point where a combine needs replacement. To obtain the lowest costs, newer combines must be used on 1,500 acres or more per year. If this is not occurring, another option may be lower cost. Alternatively, other sources of returns will be needed to justify owning a combine on lower acreage farms.