[go: up one dir, main page]

IDEAS home Printed from https://ideas.repec.org/a/ags/jlaare/230776.html
   My bibliography  Save this article

Sequential Adoption and Cost Savings from Precision Agriculture

Author

Listed:
  • Schimmelpfennig, David
  • Ebel, Robert
Abstract
Precision agricultural (PA) technologies can decrease input costs by providing farmers with more detailed information and application control, but adoption has been sluggish, especially for variable-rate technologies (VRT). Is it possible that farmers have difficulty realizing these cost savings? Combinations of PA technologies are considered as complements, testing several patterns of PA technology adoption that may show different levels of costs. The USDA’s Agricultural Resource Management Survey of corn producers is used to estimate a treatment-effects model that allows for selection bias. VRT contributes additional production cost savings when added to soil mapping, but not when done with yield mapping alone.

Suggested Citation

  • Schimmelpfennig, David & Ebel, Robert, 2016. "Sequential Adoption and Cost Savings from Precision Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(1), pages 1-19, January.
  • Handle: RePEc:ags:jlaare:230776
    DOI: 10.22004/ag.econ.230776
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/230776/files/JARE_January2016__6_Schimmelpfennig_pp97-115.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.230776?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lambert, Dayton M. & English, Burton C. & Harper, David C. & Larkin, Sherry L. & Larson, James A. & Mooney, Daniel F. & Roberts, Roland K. & Velandia, Margarita & Reeves, Jeanne M., 2014. "Adoption and Frequency of Precision Soil Testing in Cotton Production," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(1), pages 1-18, April.
    2. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    3. Schimmelpfennig, David & Ebel, Robert, 2011. "On the Doorstep of the Information Age: Recent Adoption of Precision Agriculture," Economic Information Bulletin 291945, United States Department of Agriculture, Economic Research Service.
    4. Lambert, Dayton M. & English, Burton & Harper, David & Larkin, Sherry L. & Laron, James & Mooney, Daniel F. & Roberts, Roland & Velandia, Margarita & Reeves, Jeanne, 2014. "Corrigendum to “Adoption and Frequency of Precision Soil Testing in Cotton Production”," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 39(2), pages 1-1.
    5. Tozer, Peter R., 2009. "Uncertainty and investment in precision agriculture - Is it worth the money?," Agricultural Systems, Elsevier, vol. 100(1-3), pages 80-87, April.
    6. Fernandez-Cornejo, Jorge & Klotz-Ingram, Cassandra & Jans, Sharon, 2002. "Farm-Level Effects Of Adopting Herbicide-Tolerant Soybeans In The U.S.A," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(1), pages 1-15, April.
    7. Howard D. Leathers & Melinda Smale, 1991. "A Bayesian Approach to Explaining Sequential Adoption of Components of a Technological Package," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 734-742.
    8. Horowitz, John K. & Ebel, Robert M. & Ueda, Kohei, 2010. ""No-Till" Farming Is a Growing Practice," Economic Information Bulletin 96636, United States Department of Agriculture, Economic Research Service.
    9. Isik, Murat & Khanna, Madhu & Winter-Nelson, Alex, 2001. "Sequential Investment In Site-Specific Crop Management Under Output Price Uncertainty," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 26(1), pages 1-18, July.
    10. Pringle, M. J. & McBratney, A. B. & Whelan, B. M. & Taylor, J. A., 2003. "A preliminary approach to assessing the opportunity for site-specific crop management in a field, using yield monitor data," Agricultural Systems, Elsevier, vol. 76(1), pages 273-292, April.
    11. Derek Byerlee & Edith Hesse de Polanco, 1986. "Farmers' Stepwise Adoption of Technological Packages: Evidence from the Mexican Altiplano," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(3), pages 519-527.
    12. Kelly A. Davey & W. Hartley Furtan, 2008. "Factors That Affect the Adoption Decision of Conservation Tillage in the Prairie Region of Canada," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(3), pages 257-275, September.
    13. Ebel, Robert M. & Schimmelpfennig, David E., 2011. "The Information Age and Adoption of Precision Agriculture," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-1.
    14. D'Emden, Francis H. & Llewellyn, Rick S. & Burton, Michael P., 2008. "Factors influencing adoption of conservation tillage in Australian cropping regions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 1-14.
    15. Francis H. D'Emden & Rick S. Llewellyn & Michael P. Burton, 2008. "Factors influencing adoption of conservation tillage in Australian cropping regions ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(2), pages 169-182, June.
    16. 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.
    17. Griffin, Terry W. & Dobbins, Craig L. & Lowenberg-DeBoer, James, 2007. "Case Study of On-Farm Experiments and Farm Management Decision Making," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9921, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Schimmelpfennig, David, 2016. "Farm Profits and Adoption of Precision Agriculture," Economic Research Report 249773, United States Department of Agriculture, Economic Research Service.
    2. Pannell, David J. & Llewellyn, Rick S. & Corbeels, Marc, 2013. "The farm-level economics of conservation agriculture for resource-poor farmers," Working Papers 166526, University of Western Australia, School of Agricultural and Resource Economics.
    3. Sheng Gong & Jason.S. Bergtold & Elizabeth Yeager, 2021. "Assessing the joint adoption and complementarity between in-field conservation practices of Kansas farmers," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-24, December.
    4. Smith, Elwin G. & Carew, Richard & Warner, Kace, 2013. "Decision Making among Canola Growers in the Prairie Provinces: The Impact of Farm and Grower Characteristics," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149834, Agricultural and Applied Economics Association.
    5. Daniele Mozzato & Paola Gatto & Edi Defrancesco & Lucia Bortolini & Francesco Pirotti & Elena Pisani & Luigi Sartori, 2018. "The Role of Factors Affecting the Adoption of Environmentally Friendly Farming Practices: Can Geographical Context and Time Explain the Differences Emerging from Literature?," Sustainability, MDPI, vol. 10(9), pages 1-23, August.
    6. Wade, Tara & Claassen, Roger, 2015. "Modeling No-Tillage Adoption by Corn and Soybean Producers: Insights into Sustained Adoption," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 204957, Agricultural and Applied Economics Association.
    7. Alexandra Peralta & Scott M. Swinton & Songqing Jin, 2018. "The Secret to Getting Ahead Is Getting Started: Early Impacts of a Rural Development Project," Sustainability, MDPI, vol. 10(8), pages 1-20, July.
    8. Marita Laukkanen & NAUGES Céline, 2009. "Environmental and production cost impacts of no-till: estimates from observed behavior," LERNA Working Papers 09.28.304, LERNA, University of Toulouse.
    9. Lambert, Dayton M. & Paudel, Krishna P. & Larson, James A., 2015. "Bundled Adoption of Precision Agriculture Technologies by Cotton Producers," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(2), pages 1-21, May.
    10. MacDonald, James M. & Korb, Penni & Hoppe, Robert A., 2013. "Farm Size and the Organization of U.S. Crop Farming," Economic Research Report 262221, United States Department of Agriculture, Economic Research Service.
    11. Krishna, Vijesh V. & Veettil, Prakashan C., 2014. "Productivity and efficiency impacts of conservation tillage in northwest Indo-Gangetic Plains," Agricultural Systems, Elsevier, vol. 127(C), pages 126-138.
    12. Griffin, Terry W. & Mark, Tyler B. & Dobbins, Craig L. & Lowenberg-DeBoer, James M., 2014. "Estimating whole farm costs of conducting on-farm research on midwestern US corn and soybean farms: A linear programming approach," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 4(1), October.
    13. Jacques Fils Pierre & Luis Latournerie-Moreno & René Garruña-Hernández & Krista L. Jacobsen & Carrie A. M. Laboski & Lucila de Lourdes Salazar-Barrientos & Esaú Ruiz-Sánchez, 2021. "Farmer Perceptions of Adopting Novel Legumes in Traditional Maize-Based Farming Systems in the Yucatan Peninsula," Sustainability, MDPI, vol. 13(20), pages 1-16, October.
    14. Wade, Tara & Kurkalova, Lyubov & Secchi, Silvia, 2016. "Modeling Field-Level Conservation Tillage Adoption with Aggregate Choice Data," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.
    15. Madhu Khanna, 2021. "Digital Transformation of the Agricultural Sector: Pathways, Drivers and Policy Implications," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1221-1242, December.
    16. Ebel, Robert M. & Schimmelpfennig, David E., 2012. "Production Cost and the Sequential Adoption of Precision Technology," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124393, Agricultural and Applied Economics Association.
    17. Arraiz, Irani & Calero, Carla & Jon, Songqing & Peralta, Alexandra, 2015. "Planting the seeds: The impact of training on mando producers in Haiti," 2015 Conference, August 9-14, 2015, Milan, Italy 212622, International Association of Agricultural Economists.
    18. Shang, Linmei & Heckelei, Thomas & Börner, Jan & Rasch, Sebastian, 2020. "Adoption and Diffusion of Digital Farming Technologies – Integrating Farm-Level Evidence and System-Level Interaction," 60th Annual Conference, Halle/ Saale, Germany, September 23-25, 2020 305586, German Association of Agricultural Economists (GEWISOLA).
    19. Alina Petronela Alexoaei & Raluca Georgiana Robu & Valentin Cojanu & Dumitru Miron & Ana-Maria Holobiuc, 2022. "Good Practices in Reforming the Common Agricultural Policy to Support the European Green Deal – A Perspective on the Consumption of Pesticides and Fertilizers," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(60), pages 525-525, April.
    20. Canales, Elizabeth & Bergtold, Jason S. & Williams, Jeffery & Peterson, Jeffrey, 2015. "Estimating farmers’ risk attitudes and risk premiums for the adoption of conservation practices under different contractual arrangements: A stated choice experiment," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205640, Agricultural and Applied Economics Association.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:jlaare:230776. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/waeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.