New research from Purdue University suggests the financial performance gap between large and small crop farms is narrowing. Agricultural economist Michael Langemeier analyzed FINBIN farm financial records from 2007 through 2025 and found operating profit margins averaged approximately 20 percent across farm sizes. However, larger operations continued to generate more revenue relative to their assets. Farms with more than 2,000 acres recorded an average asset turnover ratio of 35.2 percent, compared to 22.3 percent for farms with fewer than 500 acres. The findings suggest differences in asset efficiency, rather than operating profit margins, account for much of the remaining financial gap.
