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

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  • Kotsiri, Sofia
  • Rejesus, Roderick M.
  • Marra, Michele C.
  • Velandia, Margarita M.

Abstract

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.

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Bibliographic Info

Paper provided by Southern Agricultural Economics Association in its series 2011 Annual Meeting, February 5-8, 2011, Corpus Christi, Texas with number 98689.

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Date of creation: Jan 2011
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Handle: RePEc:ags:saea11:98689

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Related research

Keywords: Multinomial logit; endogeneity; variable rate input applications; site specific information gathering technology; yield perceptions; Agribusiness; Farm Management; Production Economics; Productivity Analysis; Q12; Q16;

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  1. Amir K. Abadi Ghadim & David J. Pannell & Michael P. Burton, 2005. "Risk, uncertainty, and learning in adoption of a crop innovation," Agricultural Economics, International Association of Agricultural Economists, vol. 33(1), pages 1-9, 07.
  2. Fernandez-Cornejo, Jorge & Daberkow, Stan G. & McBride, William D., 2001. "Decomposing The Size Effect On The Adoption Of Innovations: Agrobiotechnology And Precision Farming," 2001 Annual meeting, August 5-8, Chicago, IL 20527, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Ruth Vargas Hill, 2006. "Coffee Price Risk in the Market: Exporter, Trader and Producer Data from Uganda," Economics Series Working Papers GPRG-WPS-048, University of Oxford, Department of Economics.
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