Author Institution (Batte and Schnitkey): Department of Agricultural, Environmental and Developmental Economics, The Ohio State Universit

Batte, Marvin

Gliem, Joe A.

Schnitkey, Gary S. D.

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OARDC Research EnhancementCompetitive Grants ProgramAn Economic Evaluation of EmergingVariable Rate Application TechnologiesMarvin Batte, Agricultural, Environmental, & Development EconomicsGary S.D. Schnitkey, Agricultural, Environmental, & Development EconomicsJoe A. Gliem, Human & Community Resource DevelopmentSite-specific farming, or precision farming, is a new technology that promises to aid farmers, society, and the environment. The results are reduced costs, minimal environmental impact, and increased profits.  This research considered economic and environmental impacts of site-specific farming. Preliminary results of a survey of Ohio farmers suggests that adoption rates for various precision-farming technologies, including variable-rate applications, or VRT (applications of fertilizer, insecticides, and herbicides in response to the differences in very specific areas of fields), are still quite low. Adoption rates are higher for larger farms and for farmers with greater formal education. Researchers held small group discussions with farmers who adopted site-specific farm-ing practices and found that many farmers with large farms adopted precision agriculture for the entire farm while smaller farmers tended to experiment with portions of their acreage. All farmers surveyed felt precision-farming techniques improved profitability, but none were able to provide supporting data. The large farmers reported that precision-farming investments were recovered within the first year, whereas farmers with smaller acreage expected to recover investments over a four- to five-year period.pictured: Catherine Herms and John CardinaNumber 5C H A L L E N G E SSuccessful implementation of precision-farming techniques requires detailed information about how crops respond to agricultural inputs and the interaction among these inputs. In order to fully evaluate precision farming technologies, substantial field-level production data must be gathered to statistically analyze these complex relationships.O B J E C T I V E S Quantify variation in crop yields and identify and measure factors that cause vari-ation. Examine how farmers use soil tests, crop yield, and other data in decision making. Measure the required investment in durable capital equipment for a VRT farming system, calculate variable and fixed costs, and estimate profitability of adoption of VRT farming systems. Evaluate the financial performance of VRTs in relation to a single rate/uniform appli-cation (i.e., the conventional method). Evaluate the environmental consequences of variable-rate applications of fertilizers A C H I E V E M E N T SPrecision-farming technologies rely on extensive databases that describe variations within agricultural fields. In order to develop these technologies and have farmers adopt precision farming, researchers and farmers must work together to identify sources of information and analytical methods to put it to use. This research project has identified factors affect-ing precision farming, developed approaches to obtain and manage data, and established the essential link among researchers and farmers.T H E  F U T U R EFunding from the OARDC Research Enhancement Competitive Grants Program enabled researchers to obtain a $220,000 grant from the U.S. Department of Agriculture Fund for Rural America. Results from the USDA grant will help farmers to adopt new technologies and realize the benefits of precision farming. The Extension-education component of the grant is intended to facilitate transfer of information.College ofBiological SciencesThis research was funded through the OARDC Research Enhancement Competitive Grants Program, which receives funding from dollars appropriated by the state of Ohio.design: Jesse R. Ewing  photography: Ken ChamberlainJune 2001 RECGP FS5

An Economic Evaluation of Emerging Variable Rate Application Technologies

https://kb.osu.edu/bitstream/1811/49869/1/OARDC_SEEDS_No-5_Precision_Farming.pdf

An Economic Evaluation of Emerging Variable Rate Application Technologies

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