Economics of Management Zone Delineation in Cotton Precision Agriculture

This paper develops a management zone delineation procedure based on a spatial clustering approach and evaluates its economic impact for the case of Texas cotton production. The results show that there is potential economic value in using a spatial approach to management zone delineation, but its value critically depends on the cost of collecting soil test information needed to delineate those zones.Management Zones, Exploratory Spatial Data Analysis, Site-Specific Nitrogen Management, Cotton Precision Agriculture, Crop Production/Industries, Q12,

Economics of Management Zone Delineation in Cotton Precision Agriculture

This paper develops a management zone delineation procedure based on a spatial statistics approach and evaluates its economic impact for the case of Texas cotton production. With the use of an optimization model that utilizes a yield response function estimated through spatial econometric methods, we found that applying variable N rates based on the management zones delineated would result in higher cotton yields and higher net returns, above Nitrogen cost, relative to uniformly applying a single N rate for the whole field. In addition, a variable rate N application using the delineated management zones produced higher net returns, above Nitrogen cost, relative to a variable N rate system where the zones are based solely on landscape position. This is indicative of the potential economic value of using a spatial statistics approach to management zone delineation.Management Zones, Exploratory Spatial Data Analysis, Site-Specific Nitrogen Management, Cotton Precision Agriculture., Crop Production/Industries, Q1, Q16,

Farmers' Perceptions about Spatial Yield Variability and Precision Farming Technology Adoption: An Empirical Study of Cotton Production in 12 Southeastern States

This paper examines how cotton farmers' perceptions about their spatial yield variability influence their decision to adopt precision farming technologies. Utilizing cross-section survey data from 12 Southeastern states and a two-step econometric modeling approach, we find that farmers who perceive their yields as more spatially heterogeneous will more likely use site specific information gathering technologies and apply their inputs at a variable rate. In addition, our empirical analysis shows that perceptions about future profitability and importance of precision farming, along with socio-economic factors, also drive the technology adoption decision. These results have implications for producers contemplating the variable rate management decisions, as well as dealers selling these precision farming technologies.Multinomial logit, endogeneity, variable rate input applications, site specific information gathering technology, yield perceptions, Agribusiness, Farm Management, Production Economics, Productivity Analysis, Q12, Q16,

Factors Affecting Farmers’ Utilization of Agricultural Risk Management Tools: The Case of Crop Insurance, Forward Contracting, and Spreading Sales

Factors affecting the adoption of crop insurance, forward contracting, and spreading sales are analyzed using multivariate and multinomial probit approaches that account for simultaneous adoption and/or correlation among the three risk management adoption decisions. Our empirical results suggest that the decision to adopt crop insurance, forward contracting, and/or spreading sales are correlated. Richer insights can be drawn from our multivariate and multinomial probit analysis than from separate, single-equation probit estimation that assumes independence of adoption decisions. Some factors significantly affecting the adoption of the risk management tools analyzed are proportion of owned acres, off-farm income, education, age, and level of business risks.adoption decisions, crop insurance, forward contracting, multinomial probit, multivariate probit, risk management, spreading sales, Agribusiness, Agricultural Finance, Crop Production/Industries, Demand and Price Analysis, Risk and Uncertainty, G22, Q12, Q18,

Adoption of Variability Detection and Variable Rate Application Technologies by Cotton Farmers in Southern United States

A nested logit model was used to analyze the 2009 Southern Cotton Precision Farming Survey to study the impact of farmer and farm characteristics on the adoption of Variability Detection Technologies (VDT) and the adoption of Variability Rate application Technology (VRT) conditioned on the type of the VDT chosen. The results showed that the farm size and exposure to extension activities are important factors affecting the choice of VDTs. The farmers adopting both soil and plant based VDTs are more likely to adopt VRT. The probability of adoption of VRTs was lower for Texas cotton farmers irrespective of the type of VDT adopted. In general, younger, more educated farmers who use computers for farming operations are more likely to adopt VRT when they choose soil based or both soil and plant based VDT.Precision Agriculture, Technology Adoption, Cotton, Crop Production/Industries, Farm Management, Research and Development/Tech Change/Emerging Technologies, O33, Q16,

Un análisis económico de la aproximación estadística para el establecimiento de zonas de manejo en agricultura de precisión: caso de algodón en Texas

Este artículo desarrolla un proceso para el establecimiento de zonas de manejo basado en una aproximación estadística espacial y evalúa su impacto económico para el caso de producción de algodón en Texas. Con el uso de un modelo de optimización que utiliza funciones de producción estimadas tomando en cuenta la autocorrelación espacial mediante métodos de econometría espacial, se encontró que al aplicar nitrógeno a una tasa variable, basada en las zonas de manejo delineadas, se obtienen rendimientos de algodón más altos comparados con los rendimientos obtenidos al aplicar una tasa uniforme de nitrógeno sobre toda la unidad productiva. Así mismo, se encontró que las aplicaciones de N a una tasa variable generan ingresos netos superiores comparados con los ingresos netos generados por la aplicación uniforme de N a la tasa agronómica sugerida, y retornos inferiores comparados con la aplicación uniforme derivada del óptimo económico. Adicionalmente, se encontró que niveles promedios de nitrógeno más bajos son requeridos con las aplicaciones de nitrógeno a una tasa variable para alcanzar rendimientos más altos comparados con la aplicación uniforme de nitrógeno.Zonas de manejo, análisis espacial exploratorio de datos, manejo espacial específico de nitrógeno, agricultura de precisión con aplicaciones en algodón.

Factors Influencing the Selection of Precision Farming Information Sources by Cotton Producers

Precision farming information demanded by cotton producers is provided by various suppliers, including consultants, farm input dealerships, University Extension systems, and media sources. Factors associated with the decisions to select among information sources to search for precision farming information are analyzed using a multivariate probit regression accounting for correlation among the different selection decisions. Factors influencing these decisions are age, education, and income. These findings should be valuable to precision farming information providers who may be able to better meet their target clientele needs.Extension, information-source-use decisions, media, multivariate probit, precision agriculture technologies, private sources, Farm Management, Teaching/Communication/Extension/Profession,

Factors Influencing Selection of Information Sources by Cotton Producers Considering Adoption of Precision Agriculture Technologies

Acknowledgements: The authors thank Cotton Incorporated and the Tennessee Agricultural Experiment Station for financial supportInformation source use decisions, Precision Agriculture Technologies, Extension, Media, Private sources, Multivariate Probit, Teaching/Communication/Extension/Profession, Q12, Q16,

The Relevance of Information Sources on Adoption of Precision Farming Technologies by Cotton Producers

Replaced with revised version of paper 02/16/11.strategic communication, competitiveness, extension, economics of information, technology diffusion, technology supply, communication methods, knowledge management, Production Economics, Research and Development/Tech Change/Emerging Technologies, Teaching/Communication/Extension/Profession, D22, D80, D82, D83, Q12, Q16,

Factors Influencing Cotton Farmers’ Perceptions about the Importance of Information Sources in Precision Farming Decisions

Information generated by precision farming technologies is of particular importance to producers. Precision farming technologies implies the ability to improve the management of production factors using site-specific information. This study examines factors influencing cotton farmers’ perceptions about the importance of crop consultants, farm input dealerships, Extension, other farmers, trade shows, the Internet and printed news/media for making precision farming decisions using a rank ordered logit model (ROLM). Results suggest that age, land tenure, income, percentage of income from farming, and location may affect farmers’ perceptions about the importance of different information sources when making decisions about precision farming technologies. Results suggest that regardless of farmer/farm business characteristics other farmers (OF) is one of the most important information sources when making precision farming decisions. Findings suggest that high income producers are more likely to prefer crop consultants, University/Extension, trade shows, and the Internet over OF as a source of information when making decisions about precision farming technologies. Findings also suggest that researchers need to be very careful when designing questions that ask respondents to rank alternatives so that they guarantee that individuals with different skills are able to precisely understand what is being asked. Decreasing the number of alternatives respondents must consider may be one strategy to reduce the complexity of ranking questions to minimize the probability of the respondents leaving alternatives unranked or ranking them randomly.Information-source preferences, Rank Ordered Logit Model, Precision Farming, Production Economics, Research Methods/ Statistical Methods, Q16, C25,