Sequential Adoption and Cost Savings from Precision Agriculture

Journal of Agricultural and Resource Economics, Volume 41, Number 1

Posted: 14 Jan 2016

See all articles by David Schimmelpfennig

David Schimmelpfennig

USDA Economic Research Service; Economic Research Service (ERS)

Robert Ebel

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS)

Date Written: January 13, 2016

Abstract

Precision agricultural (PA) technologies can decrease input costs by providing farmers with more detailed information and application control, but adoption has been sluggish, especially for variable-rate technologies (VRT). Is it possible that farmers have difficulty realizing these cost savings? Combinations of PA technologies are considered as complements, testing several atterns of PA technology adoption that may show different levels of costs. The USDA’s Agricultural Resource Management Survey of corn producers is used to estimate a treatment-effects model that allows for selection bias. VRT contributes additional production cost savings when added to soil mapping, but not when done with yield mapping alone.

Keywords: crop production information technologies, joint adoption

JEL Classification: O33, Q16

Suggested Citation

Schimmelpfennig, David and Ebel, Robert, Sequential Adoption and Cost Savings from Precision Agriculture (January 13, 2016). Journal of Agricultural and Resource Economics, Volume 41, Number 1. Available at SSRN: https://ssrn.com/abstract=2714959

David Schimmelpfennig (Contact Author)

USDA Economic Research Service ( email )

355 E Street SW
Washington, DC 20024-3221
United States

Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States
202-694-5507 (Phone)

Robert Ebel

U.S. Department of Agriculture (USDA) - Economic Research Service (ERS) ( email )

355 E Street, SW
Washington, DC 20024-3221
United States

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