In recent years, there have been major adjustments in farm practices in the grain industry in order to counteract the spiral in production costs. The major cost component on Queensland grain farms is farm machinery. Fuel, oil, repairs and tyres account for 50% of variable crop growing costs, and machinery ownership costs are the main fixed or overhead cost on the farm. Taking harvesting and cultivation costs into account, farm machinery is also a major cost component in the sugar industry. This paper discusses measures taken to reduce production costs on grain farms, and there may be parallel changes possible in the sugar industry to counteract increasing costs and low sugar prices.