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Title: ESTIMATING TOTAL COSTS AND POSSIBLE RETURNS FROM PRECISION FARMING PRACTICES

Author
item MARTIN, STEVEN - MSU-DREC
item Hanks, James
item HARRIS, AUBREY - MSU-DREC
item WILLS, GENE - MSU-DREC
item BANEERJEE, SWAGATA - MSU-DREC

Submitted to: Crop Management
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 9/23/2005
Publication Date: 12/1/2005
Citation: Martin, S.W., Hanks, J.E., Harris, A., Wills, G., Baneerjee, S. 2005. Estimating total costs and possible returns from precision farming practices. Crop MAnagement. Online. doi:10.1094/CM-2005-1018-01-RS

Interpretive Summary: Preliminary investigations were conducted at Stoneville, MS to evaluate the economic feasibility of implementing a whole farm precision farming system. A 33-acre farm example was used to establish baseline cost estimates of these increasingly popular technologies. Findings suggest that per acre expense was relatively small ranging from $8.00 per acre to $12.00 per acre depending on the number of acres available. Acreage size may be smaller than conventional wisdom would suggest. Average annual savings due to reduction in production input in the study amounted to approximately $2.00 per acre. Possible yield increases may more than cover the cost of implementing a whole farm precision farming system even on minimum size farms.

Technical Abstract: Precision farming technologies are becoming increasingly popular. However, few studies have addressed the whole-farm and per-acre expense of these technologies. A 33-acre farm example was used to establish baseline cost estimates of these technologies. Findings suggest that per-acre expense was relatively small ($8.00 to $12.00/acre) if sufficient acres are available and may be smaller than conventional wisdom would suggest. Average annual input savings in the study amounted to approximately $2.00/acre. Possible yield increases may more than cover the cost of implementation.