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A Whole Farm Analysis of the Influence of Auto-Steer Navigation on Net Returns, Risk, and Production Practices

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  • Shockley, Jordan M.
  • Dillon, Carl R.
  • Stombaugh, Timothy S.

Abstract

A whole farm economic analysis was conducted to provide a detailed assessment into the economic, risk, and production implications due to the adoption of auto-steer navigation. It was determined that auto-steer navigation was profitable for a grain farmer in Kentucky with net returns increasing up to 0.90% ($3.35/acre). Additionally, the technology could be used in reducing production risk. Adoption of the technology also alters production practices for optimal use.

Suggested Citation

  • Shockley, Jordan M. & Dillon, Carl R. & Stombaugh, Timothy S., 2011. "A Whole Farm Analysis of the Influence of Auto-Steer Navigation on Net Returns, Risk, and Production Practices," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(1), pages 1-19, February.
    • Handle: RePEc:ags:joaaec:100640
    DOI: 10.22004/ag.econ.100640
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    1. McCarl, Bruce A. & Bessler, David A., 1989. "Estimating An Upper Bound On The Pratt Risk A Version Coefficient When The Utility Function Is Unknown," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 33(1), pages 1-8, April.
    2. Lowenberg-DeBoer, J., 1999. "Risk Management Potential of Precision Farming Technologies," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 31(2), pages 275-285, August.
    3. Lowenberg-DeBoer, James, 1999. "Risk Management Potential Of Precision Farming Technologies," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(2), pages 1-11, August.
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    Cited by:

    1. Johannes Munz & Heinrich Schuele, 2022. "Influencing the Success of Precision Farming Technology Adoption—A Model-Based Investigation of Economic Success Factors in Small-Scale Agriculture," Agriculture, MDPI, vol. 12(11), pages 1-21, October.
    2. Vassalos, Michael & Dillon, Carl R. & Coolong, Timothy, 2013. "Optimal Land Allocation and Production Timing for Fresh Vegetable Growers under Price and Production Uncertainty," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(4), pages 1-16, November.
    3. Nathan D. DeLay & Nathanael M. Thompson & James R. Mintert, 2022. "Precision agriculture technology adoption and technical efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 195-219, February.
    4. Vassalos, Michael & Dillon, Carl R. & Coolong, Tim, 2012. "Choice of Optimal Planting and Marketing Decisions for Fresh Vegetable Producers: A Mathematical Programming Approach," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 120016, Southern Agricultural Economics Association.
    5. Athanasios Balafoutis & Bert Beck & Spyros Fountas & Jurgen Vangeyte & Tamme Van der Wal & Iria Soto & Manuel Gómez-Barbero & Andrew Barnes & Vera Eory, 2017. "Precision Agriculture Technologies Positively Contributing to GHG Emissions Mitigation, Farm Productivity and Economics," Sustainability, MDPI, vol. 9(8), pages 1-28, July.
    6. Velandia, Margarita & Edge, Brittani & Boyer, Christopher & Larson, James & Lambert, Dayton & Wilson, Bradley & Buschermohle, Michael & Rejesus, Roderick & Falconer, Larry & English, Burton C., 2016. "Factors Influencing the Adoption of Automatic Section Control Technologies and GPS Auto-Guidance Systems in Cotton Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235563, Agricultural and Applied Economics Association.
    7. Wang, Tong & Jin, Hailong & Sieverding, Heidi L. & Rao, Xudong & Miao, Yuxin & Kumar, Sandeep & Redfearn, Daren & Nafchi, Ali, 2022. "Understanding farmer perceptions of precision agriculture profitability in the U.S. Midwest," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322502, Agricultural and Applied Economics Association.
    8. Shockley, Jordan & Dillon, Carl R. & Stombaugh, Timothy S., 2012. "The Influence of Auto-Steer on Machinery Selection and Land Acquisition," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2012, pages 1-7, June.
    9. Hanson, Erik D. & Cossette, Max K. & Roberts, David C., 2022. "The adoption and usage of precision agriculture technologies in North Dakota," Technology in Society, Elsevier, vol. 71(C).
    10. Gaganpreet Singh Hundal & Chad Matthew Laux & Dennis Buckmaster & Mathias J Sutton & Michael Langemeier, 2023. "Exploring Barriers to the Adoption of Internet of Things-Based Precision Agriculture Practices," Agriculture, MDPI, vol. 13(1), pages 1-16, January.
    11. Hanson, Erik & Roberts, David C., 2020. "Precision Agriculture Technology Usage and Adoption Patterns," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304265, Agricultural and Applied Economics Association.
    12. Jordan Shockley & Carl Dillon & James Lowenberg‐DeBoer & Tyler Mark, 2022. "How will regulation influence commercial viability of autonomous equipment in US production agriculture?," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(2), pages 865-878, June.
    13. D'Antoni, Jeremy M. & Mishra, Ashok K. & Powell, Rebekah R. & Martin, Steven W., 2012. "Farmers’ Perception of Precision Technology: The Case of Autosteer Adoption by Cotton Farmers," 2012 Annual Meeting, February 4-7, 2012, Birmingham, Alabama 119734, Southern Agricultural Economics Association.
    14. Wang, Tong & Jin, Hailong & Sieverding, Heidi & Kumar, Sandeep & Miao, Yuxin & Rao, Xudong & Obembe, Oladipo & Mirzakhani Nafchi, Ali & Redfearn, Daren & Cheye, Stephen, 2023. "Understanding farmer views of precision agriculture profitability in the U.S. Midwest," Ecological Economics, Elsevier, vol. 213(C).
    15. Smith, Craig M. & Dhuyvetter, Kevin C. & Kastens, Terry L. & Kastens, Dietrich & Smith, Logan, 2013. "Economics of Precision Agricultural Technologies Across the Great Plains," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2013, pages 1-22, June.

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    Keywords

    Farm Management; Risk and Uncertainty;

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