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Some ideas of economic aspects of precision plant production (protection)

Listed author(s):
  • Takacs-Gyorgy, Katalin

Precision farming – besides other aspects – enables the reduction of use of chemical substances in crop production while decreases farming risks, contributes to specific field-crop-plant applications, makes production processes more designable and increases profitability. The introduction of a new technology requires complex farm-management decisions, including the consideration of economic correlations (costs-yield-income). Considering the three basic meanings of sustainability, the farming strategies have to meet these requirements. There are several alternatives to reduce artificial chemical use (applying new chemicals with lower doses, chemical-free ways like organic farming, negative environmental taxes, precision farming, etc.). In Hungary the farm structure is polarized, there are large crop producing farms (operating over 1000 ha), a lot of small farms (working less then 50 ha), but the number of middle sized farms is growing up, fortunately. Precision plant production could be a real alternative for them in their efforts to optimize chemical use, but the capital investment required for shifting to this technology, should also be considered. It is necessary to examine the conditions under which it will be a viable decision from economic point of view. It can be stated that the extra investment will be returned above 150-160 ha crop producing farm. Risk of return depends on soil conditions, weed coverage and could be decreased by increasing the utilization of machinery. The objective of the study is to examine the economic consequences of precision plant protection, to find the answers to the questions which may occur when the farmer turns to precision farming.

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Paper provided by European Association of Agricultural Economists in its series 2008 International Congress, August 26-29, 2008, Ghent, Belgium with number 44045.

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Date of creation: 2008
Handle: RePEc:ags:eaae08:44045
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