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Using Spatial Analysis to Study the Values of Variable Rate Technology and Information

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  • Bullock, David S.
  • Lowenberg-DeBoer, James

Abstract

We present a review of the last few years' literature on the economic feasibility of variable rate technology in agriculture. Much of the research on this topic has involved the estimation of site-specific yield response functions. Data used for such estimations most often inherently lend themselves to spatial analysis. We discuss the different types of spatial analyses that may be appropriate in estimating various types yield response functions. Then, we present a taxonomy for the discussion of the economics of precision agriculture technology and information. We argue that precision agriculture technology and information must be studied together since they are by nature economic complements. We contend that longer-term, multi-location agronomic experiments are needed for the estimation of ex ante optimal variable input rates and the expected profitability of variable rate technology and information gathering. We use our taxonomy to review the literature and its results with consistency and rigor.

Suggested Citation

  • Bullock, David S. & Lowenberg-DeBoer, James, 2006. "Using Spatial Analysis to Study the Values of Variable Rate Technology and Information," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25393, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25393
    DOI: 10.22004/ag.econ.25393
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    1. Luc Anselin & Rodolfo Bongiovanni & Jess Lowenberg-DeBoer, 2004. "A Spatial Econometric Approach to the Economics of Site-Specific Nitrogen Management in Corn Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 675-687.
    2. Neil R. Miller, 2006. "Is Site-Specific Yield Response Consistent over Time? Does It Pay?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 471-483.
    3. Hurley, Terrance M. & Oishi, Kikuo & Malzer, Gary L., 2005. "Estimating the Potential Value of Variable Rate Nitrogen Applications: A Comparison of Spatial Econometric and Geostatistical Models," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(2), pages 1-19, August.
    4. Bullock, David S. & Lowenberg-DeBoer, Jess & Swinton, Scott M., 2002. "Adding value to spatially managed inputs by understanding site-specific yield response," Agricultural Economics, Blackwell, vol. 27(3), pages 233-245, November.
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    Cited by:

    1. Mkondiwa, Maxwell Gibson, 2015. "Whither Broad or Spatially Specific Fertilizer Recommendations?," Master's Theses and Plan B Papers 237344, University of Minnesota, Department of Applied Economics.
    2. Queiroz, Pedro W. V. & Perrin, Richard K. & Fulginiti, Lilyan E. & Bullock, David S., 2023. "An Expected Value of Sample Information (EVSI) Approach for Estimating the Payoff from a Variable Rate Technology," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 48(1), January.
    3. Nathan D. DeLay & Nathanael M. Thompson & James R. Mintert, 2022. "Precision agriculture technology adoption and technical efficiency," Journal of Agricultural Economics, Wiley Blackwell, vol. 73(1), pages 195-219, February.
    4. Hough, Ella Christina & Nell, Wilhelm T. & Maine, Ntsikane & Groenewald, Jan A. & van der Rijst, M., 2010. "Best fit model selection for spatial differences (regression) in the profitability analysis of precision phosphate (P) application to winter cereals in Precision Agriculture (PA)," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96642, African Association of Agricultural Economists (AAAE).
    5. Perrin, Richard K. & Queiroz, Pedro & Silva, Felipe & Fulginiti, Lilyan E., 2018. "Ex-ante expected payoff from variable rate N application: an expected value of sample information (EVSI) approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 274351, Agricultural and Applied Economics Association.
    6. Bullock, David S., 2013. "Simulating the Value of Information Generated by On-farm Agronomic Experimentation Using Precision Agriculture Technology," 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152370, International Agricultural Trade Research Consortium.
    7. Bourgain, Odile & Llorens, Jean-Marc, 2013. "Simulation des seuils de rentabilité économique de techniques d’application localisée des pesticides," Économie rurale, French Society of Rural Economics (SFER Société Française d'Economie Rurale), vol. 333(January-F).
    8. DeLay, Nathan & Comstock, Haden, 2021. "Recent Trends in PA Technology Adoption and Bundling in CornProduction: Implications for Farm Consolidation," Western Economics Forum, Western Agricultural Economics Association, vol. 19(2), December.

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    More about this item

    Keywords

    Research and Development/Tech Change/Emerging Technologies;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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