Particle size reduction is an operation done to corn (Zea mays) to command higher price marketability of the product. Smaller particle size also improves the digestibility of nutrients making feed energy conversion efficient. The majority of the available corn mill designs in the Philippine market are for the village and industrial level operations that are high in price and capacity. The aim of this study was to develop a financially feasible hammer mill for small-scale corn milling operation. The study also considered the separation of the fine corn grits and the coarse corn grits to provide an option in the utilization as feed to a different age of animals. The designed and fabricated hammer mill comprised of the milling chamber, grits outlet, suction fan, cyclone separator, prime mover, and frame. The hammer mill was evaluated at different operating tip speeds of 28 m/s, 22 m/s, 19 m/s, and 14 m/s using parameters such as the milling capacity, milling efficiency, particle size output, and electrical energy consumptions. The result of the evaluation showed that 28 m/s results in a “medium” corn grits collected at the grits outlet. “Coarse” milled corn was observed at the operating speed of 22 m/s, 19 m/s, and 14 m/s at the grits outlet. Collected milled corn at the cyclone separator has a “fine” classification. Simple cost analysis revealed that the machine has a break-even point of 4,048 kg/yr and a payback period of 26 days at 2 Php custom rate.