Adoption of Variable Rate Technology

Site Specific Management (SSM), which also variously referred to as Variable Rate Technology (VRT), is an emergingtechnology that enables producers to make more precise input application decisions based on soil and fieldcharacteristics. This study analyzes factors influencing the adoption of VRT for fertilizer application for cash grainproduction in Ohio. Results show that producer and field characteristics might influence the adoption decision onvarious SSM components differently. It also provides insight as to the sequence of adoption of SSM componenttechnologies and how this sequence might differ for producers of differing characteristics

An Economic Analysis of Variable Rate Technology

Variable Rate Technology (VRT) offers an opportunity to improve production efficiency by allowing input applicationsto fluctuate in response to spatial variations in soil characteristics and nutrient levels. Society may also benefit fromreduced negative externalities, such as surface and groundwater contamination, from input applications. Using adynamic spatial model, this study examines how the interaction among variability, spatial autocorrelation, and meanlevel of soil fertility affects optimal sampling density and the economic gains from VRT. VRT was found to beprofitable under selected conditions, and the optimal grid size will vary with these conditions. In the case wherevariability and mean fertility levels are significantly high associated with low spatial autocorrelation, VRT producesgreater net returns than Uniform Rate Technology (URT), even with the smallest grid size to base the input applicationdecisions. Results also demonstrate that optimal grid size increases with increased spatial autocorrelation