Economics of Precision Farming

During the early years of precision agriculture, initial reports indicated that economics of precision agriculture profitability was site-specific. That statement still holds true today, although the discussion has expanded beyond the field to the farm. Today, precision farming profitability can be measured at differing scales including: i) sub-field and field level, ii) whole-farm level, and iii) societal level. The majority of profitability studies have focused on field-level analyses, while societal benefits have received the least effort. During the 1990s, studies assessed the agronomic or economic benefits of spatial technologies focused on field-level analyses of yield and profitability rather than whole-farm or societal benefits (Griffin et al., 2004). The purpose of this chapter is to introduce students, consultants, and farm managers to the basics of precision farming economics.