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Adoption, Profitability, And Making Better Use Of Precision Farming Data

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  • Lambert, Dayton M.
  • Lowenberg-DeBoer, James
  • Griffin, Terry W.
  • Peone, J.
  • Payne, Tim
  • Daberkow, Stan G.

Abstract

Precision agriculture (PA) technology has been on the market for over ten years. Global Positioning Systems (GPS), Geographic Information Systems (GIS), yield monitors, variable rate technologies (VRT) and other spatial management technologies are being used by farmers worldwide, but questions remain about the profitability of the technology and its future. This paper summarizes: 1) data on adoption of PA technology worldwide, 2) review of PA economics studies and 3) efforts to make better use of yield monitor and other sensor data in crop management. The adoption estimates are based on reports by an international network of collaborators. This paper draws on USDA ARMS data to update U.S. PA adoption numbers. The PA profitability summary goes beyond previous reviews by including a large number of publications from the last three years, a more detailed breakdown of results by technology type and new technologies. The data analysis section focuses on efforts to make use of the yield monitor and other data that farmers are collecting routinely, including spatial analysis of on-farm comparisons and alternative on-farm trial designs that take advantage of PA technology. Conclusions outline our vision of the future of precision agriculture and the role of farm management extension.

Suggested Citation

  • Lambert, Dayton M. & Lowenberg-DeBoer, James & Griffin, Terry W. & Peone, J. & Payne, Tim & Daberkow, Stan G., 2004. "Adoption, Profitability, And Making Better Use Of Precision Farming Data," Staff Papers 28615, Purdue University, Department of Agricultural Economics.
    • Handle: RePEc:ags:puaesp:28615
    DOI: 10.22004/ag.econ.28615
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    1. Fernandez-Cornejo, Jorge & Daberkow, Stan G. & McBride, William D., 2001. "Decomposing The Size Effect On The Adoption Of Innovations: Agrobiotechnology And Precision Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20527, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    3. Norton, George W. & Swinton, Scott M., 2000. "Precision Agriculture: Global Prospects and Environmental Implications," 2000 Conference, August 13-18, 2000, Berlin, Germany 197207, International Association of Agricultural Economists.
    4. Madhu Khanna, 2001. "Sequential Adoption of Site-Specific Technologies and its Implications for Nitrogen Productivity: A Double Selectivity Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(1), pages 35-51.
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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. Timothy J. Lowe & Paul V. Preckel, 2004. "Decision Technologies for Agribusiness Problems: A Brief Review of Selected Literature and a Call for Research," Manufacturing & Service Operations Management, INFORMS, vol. 6(3), pages 201-208.
    3. Takács-György, Katalin, 2015. "Chemical Use in Crop Production – Can it be Reduced by New Technologies?," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2015(3), June.
    4. 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.
    5. Madhu Khanna, 2021. "Digital Transformation of the Agricultural Sector: Pathways, Drivers and Policy Implications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1221-1242, December.
    6. Mintert, James & Thompson, Nathanael & Widmar, David & Bir, Courtney, 2019. "Pr - Precision Agriculture Technology Adoption In U.S. Crop Production," 22nd Congress, Tasmania, Australia, March 3-8, 2019 345888, International Farm Management Association.
    7. Schimmelpfennig, David, 2016. "Farm Profits and Adoption of Precision Agriculture," Economic Research Report 249773, United States Department of Agriculture, Economic Research Service.
    8. Mooney, Daniel F. & Larson, James & Roberts, Roland & English, Burton, 2009. "When Does Variable Rate Technology for Agricultural Sprayers Pay? A Case Study for Cotton Production in Tennessee," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2009, pages 1-11.
    9. Yari Vecchio & Marcello De Rosa & Gregorio Pauselli & Margherita Masi & Felice Adinolfi, 2022. "The leading role of perception: the FACOPA model to comprehend innovation adoption," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    10. Barnes, A.P. & Soto, I. & Eory, V. & Beck, B. & Balafoutis, A. & Sánchez, B. & Vangeyte, J. & Fountas, S. & van der Wal, T. & Gómez-Barbero, M., 2019. "Exploring the adoption of precision agricultural technologies: A cross regional study of EU farmers," Land Use Policy, Elsevier, vol. 80(C), pages 163-174.
    11. Ivana Rendulić Jelušić & Branka Šakić Bobić & Zoran Grgić & Saša Žiković & Mirela Osrečak & Ivana Puhelek & Marina Anić & Marko Karoglan, 2022. "Grape Quality Zoning and Selective Harvesting in Small Vineyards—To Adopt or Not to Adopt," Agriculture, MDPI, vol. 12(6), pages 1-22, June.
    12. Lambert, Dayton M. & Lowenberg-DeBoer, James & Malzer, Gary L., 2005. "Managing Phosphorous Soil Dynamics Over Space And Time," 2005 Annual meeting, July 24-27, Providence, RI 19452, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    13. Griffin, Terry W. & Lowenberg-DeBoer, James, 2008. "Spatial Analysis of Precision Agriculture Data: Role for Extension," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6804, Southern Agricultural Economics Association.
    14. Walton, Jonathan C. & Lambert, Dayton M. & Roberts, Roland K. & Larson, James A. & English, Burton C. & Larkin, Sherry L. & Martin, Steven W. & Marra, Michele C. & Paxton, Kenneth W. & Reeves, Jeanne , 2008. "Adoption and Abandonment of Precision Soil Sampling in Cotton Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 33(3), pages 1-21.
    15. Robinson, A. & Campo, K.R. & Isaac, W.A. & Ganpat, W., 2013. "Virtual Outreach: Use Of Mobile Technologies For Knowledge Management And Extension Services In Rural Communities," 49th Annual Meeting, June 30-July 6, 2013, St. Thomas, U.S. Virgin Islands 253574, Caribbean Food Crops Society.
    16. Fernandez-Cornejo, Jorge & Mishra, Ashok K. & Nehring, Richard F. & Hendricks, Chad & Southern, Malaya & Gregory, Alexandra, 2007. "Off-Farm Income, Technology Adoption, And Farm Economic Performance," Economic Research Report 7234, United States Department of Agriculture, Economic Research Service.
    17. Sykuta, Michael E., 2016. "Big Data in Agriculture: Property Rights, Privacy and Competition in Ag Data Services," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(A), pages 1-18, June.
    18. Dhoubhadel, Sunil P., 2020. "Precision Agriculture Technologies and Farm Profitability," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304229, Agricultural and Applied Economics Association.
    19. Walton, Jonathan C. & Larson, James A. & Roberts, Roland K. & Lambert, Dayton M. & English, Burton C. & Larkin, Sherry L. & Marra, Michele C., 2008. "PDA and Handheld GPS Adoption in Precision Cotton Production," 2008 Annual Meeting, February 2-6, 2008, Dallas, Texas 6839, Southern Agricultural Economics Association.
    20. Larson, James A. & Roberts, Roland K. & English, Burton C. & Larkin, Sherry L. & Marra, Michele C. & Martin, Steven W. & Paxton, Kenneth W. & Reeves, Jeanne M., 2007. "Factors Influencing Adoption of Remotely Sensed Imagery for Site-Specific Management in Cotton Production," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34971, Southern Agricultural Economics Association.
    21. Kolady, Deepthi E. & Van Der Sluis, Evert, 2021. "Adoption Determinants of Precision Agriculture Technologies and Conservation Agriculture: Evidence from South Dakota," Western Economics Forum, Western Agricultural Economics Association, vol. 19(2), December.
    22. Enikő Lencsés & István Takács & Katalin Takács-György, 2014. "Farmers’ Perception of Precision Farming Technology among Hungarian Farmers," Sustainability, MDPI, vol. 6(12), pages 1-14, November.
    23. 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.
    24. 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).

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