A whole-farm investment analysis of some precision agriculture technologies
AbstractThis study used information about a farm in the Victorian Mallee during the period 1998 â€“ 2005 to analyse the profitability of investing in Precision Agriculture and Site-Specific Crop Management technology and farming systems. Two equipment guidance systems were evaluated. Both guidance systems earned more than 8 percent real return p.a. on the extra capital invested. A Real-Time Kinetic (RTK) guidance system with a precision of 2 cm and a capital cost of $50,000 was less profitable than a Sub-Metre guidance system with 20 cm accuracy and costing $20,000. Producers investing in RTK guidance technology would be well-paid to also adopt supporting management practices that enhance crop gross margins or provide other benefits. The capital cost of GPS technology has to be spread over sufficient hectares. Investment in Zone Management technologies to fine-tune applications of nitrogen within paddocks did not meet the required return on capital of 8 percent p.a. With the spatial variability on this farm, 1670 hectares of crop were required for the investment to break-even with alternative uses of the capital. Alternatively, with 900 hectares cropped on this case study farm, spatial variation of at least 2.5 t/ha in yield across paddocks was required to justify the investment in the Zone Management technology.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Australasian Farm Business Management Network in its journal AFBM Journal.
Volume (Year): 06 (2009)
Issue (Month): 1 ()
Precision Agriculture; GPS technology; investment; Farm Management;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael D. Weiss, 1996. "Precision Farming and Spatial Economic Analysis: Research Challenges and Opportunities," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(5), pages 1275-1280.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.