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When Does Variable Rate Technology for Agricultural Sprayers Pay? A Case Study for Cotton Production in Tennessee

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  • Mooney, Daniel F.
  • Larson, James
  • Roberts, Roland
  • English, Burton

Abstract

Producers interested in precision agriculture lack information on the profitability of variable rate technology (VRT) systems for agricultural sprayers. A partial budgeting framework was developed to evaluate the level of input savings required to pay for investments in VRT. To illustrate this framework, a case study for cotton production in Tennessee is provided. Ownership and information costs were determined for two commerciallyavailable VRT systems and compared to extension recommended input application levels. Map-based VRT systems required input savings of 11 percent to be profitable. Sensor-based systems required input savings from 5 to 11 percent to be profitable depending on imagery resolution.

Suggested Citation

  • Mooney, Daniel F. & Larson, James & Roberts, Roland & English, Burton, 2009. "When Does Variable Rate Technology for Agricultural Sprayers Pay? A Case Study for Cotton Production in Tennessee," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2009, pages 1-11.
    • Handle: RePEc:ags:jasfmr:189863
    DOI: 10.22004/ag.econ.189863
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    References listed on IDEAS

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    1. Roberts, Roland K. & English, Burton C. & Larson, James A., 2006. "The Variable-Rate Input Application Decision for Multiple Inputs with Interactions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(2), pages 1-23, August.
    2. Lambert, Dayton M. & Lowenberg-DeBoer, James & Griffin, Terry W. & Peone, J. & Payne, Tim & Daberkow, Stan G., 2004. "Adoption, Profitability, And Making Better Use Of Precision Farming Data," Staff Papers 28615, Purdue University, Department of Agricultural Economics.
    3. English, Burton C. & Mahajanashetti, S.B. & Roberts, Roland K., 2001. "Assessing Spatial Break-even Variability in Fields with Two or More Management Zones," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 33(3), pages 551-565, December.
    4. Bennett, Anne L. & Pannell, David J., 1998. "Economic evaluation of a weed-activated sprayer for herbicide application to patchy weed populations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(4), pages 1-20.
    5. Caleb A. Oriade & Robert P. King & Frank Forcella & Jeffrey L. Gunsolus, 1996. "A Bioeconomic Analysis of Site-Specific Management for Weed Control," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 18(4), pages 523-535.
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    Cited by:

    1. Boyer, Christopher N. & Lambert, Dayton M. & Velandia, Margarita & English, Burton C. & Robert, Roland K. & Larson, James A. & Larkin, Sherry L. & Paudel, Krishna P. & Reeves, Jeanne M., 2016. "Cotton Producer Awareness and Participation in Cost-Sharing Programs for Precision Nutrient-Management Technology," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(1), pages 1-16, January.

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