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Returns to Zone Management Under Varying Conditions

Author

Listed:
  • Jahan, Mohsina
  • Wachenheim, Cheryl
  • Hanson, Erik
  • Sun, Xin
  • Parman, Bryon

Abstract

A framework for individual-farmer evaluation of the net benefits of adopting precision agricultural technologies was developed and tested. Partial budgeting analysis was used to calculate the net profit effect of adopting precision agriculture technology bundles on three farms differing in input use and location. @Risk was used to account for risk. Results show that adopting zone application of fertilizers and seed can be profitable for farms with moderately variable soils and this is amplified with higher prices, but that adoption of zone application may not be profitable for farms with low input use variation such as those irrigated.

Suggested Citation

  • Jahan, Mohsina & Wachenheim, Cheryl & Hanson, Erik & Sun, Xin & Parman, Bryon, 2023. "Returns to Zone Management Under Varying Conditions," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2023, January.
    • Handle: RePEc:ags:jasfmr:342896
    DOI: 10.22004/ag.econ.342896
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    References listed on IDEAS

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    1. Schimmelpfennig, David & Lowenberg-DeBoer, James, 2020. "Farm types and precision agriculture adoption: crops, regions, soil variability, and farm size," Land, Farm & Agribusiness Management Department 304070, Harper Adams University, Land, Farm & Agribusiness Management Department.
    2. Frits K. Van Evert & Daniel Gaitán-Cremaschi & Spyros Fountas & Corné Kempenaar, 2017. "Can Precision Agriculture Increase the Profitability and Sustainability of the Production of Potatoes and Olives?," Sustainability, MDPI, vol. 9(10), pages 1-24, October.
    3. Schimmelpfennig, David & Ebel, Robert, 2016. "Sequential Adoption and Cost Savings from Precision Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(1), pages 1-19, January.
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