It sounds like the problem is that the capital costs associated with automation don't scale down well. Fixed cost equipment like tractors don't scale down well

It sounds like the problem is that the capital costs associated with automation don't scale down well. Fixed cost equipment like tractors don't scale down well to smaller farms. At a cost of several million dollars for equipment, if you only have low five figure of profit a year you're not going to be able to realistically make interest payments on the capital loan.