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Crop Production Costs, Profits, and Ecosystem Stewardship with Precision Agriculture

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  • Schimmelpfennig, David

Abstract

Ecosystem stewardship is an important goal of crop production management. The developing question has been the feasibility and profitability of best management practices (BMPs) associated with stewardship goals. Treatment-effects empirical estimates show that soybean crop ecosystem stewardship is likely to benefit from precision agriculture's (PA) information technologies to varying degrees. After accounting for the effect of overhead expenditures on technology adoption, and input costs on operating costs and profits, we show PA technologies also affect at least six BMPs. In one comprehensive framework, PA technologies affect profits, and improve crop production management through BMPs, with benefits for ecosystem stewardship.

Suggested Citation

  • Schimmelpfennig, David, . "Crop Production Costs, Profits, and Ecosystem Stewardship with Precision Agriculture," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 50(1).
    • Handle: RePEc:ags:joaaec:355379
    DOI: 10.22004/ag.econ.355379
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    1. Ribaudo, Marc & Savage, Jeffrey & Aillery, Marcel P., 2014. "An Economic Assessment of Policy Options To Reduce Agricultural Pollutants in the Chesapeake Bay," Economic Research Report 171880, United States Department of Agriculture, Economic Research Service.
    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. Livingston, Michael & Fernandez-Cornejo, Jorge & Unger, Jesse & Osteen, Craig & Schimmelpfennig, David & Park, Tim & Lambert, Dayton, 2015. "The Economics of Glyphosate Resistance Management in Corn and Soybean Production," Economic Research Report 205083, United States Department of Agriculture, Economic Research Service.
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    2. Schimmelpfennig, David & Lowenberg-DeBoer, James, "undated". "Farm types and precision agriculture adoption: crops, regions, soil variability, and farm size," Land, Farm & Agribusiness Management Department 304070, Harper Adams University, Land, Farm & Agribusiness Management Department.
    3. Renda, Andrea & Reynolds, Nicole & Laurer, Moritz & Cohen, Gal, 2019. "Digitising Agrifood: Pathways and Challenges," CEPS Papers 25701, Centre for European Policy Studies.
    4. Silvia Macchia, 2022. "Unbundling the information needs of new-generation agricultural companies," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 117-141.
    5. Julian M. Alston & Philip G. Pardey, 2020. "Innovation, Growth, and Structural Change in American Agriculture," NBER Chapters, in: The Role of Innovation and Entrepreneurship in Economic Growth, pages 123-165, National Bureau of Economic Research, Inc.
    6. Boehlje, Michael & Langemeier, Michael, 2022. "Potential Payoffs of Precision Agriculture," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2022.
    7. Stefania Troiano & Matteo Carzedda & Francesco Marangon, 2023. "Better richer than environmentally friendly? Describing preferences toward and factors affecting precision agriculture adoption in Italy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-15, December.
    8. McFadden, Jonathan & Njuki, Eric & Griffin, Terry, "undated". "Precision Agriculture in the Digital Era: Recent Adoption on U.S. Farms," USDA Miscellaneous 333550, United States Department of Agriculture.
    9. Assefa, Yared & Yadav, Sudhir & Mondal, Manoranjan K. & Bhattacharya, Jayanta & Parvin, Rokhsana & Sarker, Shilpi R. & Rahman, Mahabubur & Sutradhar, Asish & Prasad, P.V. Vara & Bhandari, Humnath & Sh, 2021. "Crop diversification in rice-based systems in the polders of Bangladesh: Yield stability, profitability, and associated risk," Agricultural Systems, Elsevier, vol. 187(C).
    10. Calder McCollum & Jason S. Bergtold & Jeffery Williams & Amer Al-Sudani & Elizabeth Canales, 2022. "Perceived Benefit and Cost Perception Gaps between Adopters and Non-Adopters of In-Field Conservation Practices of Agricultural Producers," Sustainability, MDPI, vol. 14(19), pages 1-19, September.
    11. Wang, Tong & Jin, Hailong & Sieverding, Heidi L. & Rao, Xudong & Miao, Yuxin & Kumar, Sandeep & Redfearn, Daren & Nafchi, Ali, 2022. "Understanding farmer perceptions of precision agriculture profitability in the U.S. Midwest," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322502, Agricultural and Applied Economics Association.
    12. Wang, Tong & Jin, Hailong & Sieverding, Heidi & Kumar, Sandeep & Miao, Yuxin & Rao, Xudong & Obembe, Oladipo & Mirzakhani Nafchi, Ali & Redfearn, Daren & Cheye, Stephen, 2023. "Understanding farmer views of precision agriculture profitability in the U.S. Midwest," Ecological Economics, Elsevier, vol. 213(C).

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