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How will regulation influence commercial viability of autonomous equipment in US production agriculture?

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  • Jordan Shockley
  • Carl Dillon
  • James Lowenberg‐DeBoer
  • Tyler Mark

Abstract

Autonomous equipment for crop production is on the brink of commercialization in the United States but federal, state, and local policies could affect commercial viability and hinder adoption. This article examines the farm‐level implications of both a speed restriction and on‐site supervisory regulations. The rules reduce the profitability of autonomous machinery, and for some scenarios autonomous machines are no longer an economically viable alternative to conventional machinery. Regulations also increase the optimal number autonomous machines required and influence production practices. Smaller farms have more flexibility in supporting the rules because they have more to gain from the use of autonomous equipment.

Suggested Citation

  • 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.
    • Handle: RePEc:wly:apecpp:v:44:y:2022:i:2:p:865-878
    DOI: 10.1002/aepp.13178
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    References listed on IDEAS

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    1. 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.
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