An ag economist at Purdue University says many farmers aren’t seeing strong financial returns when adopting precision ag technology. Chad Fiechter says a recent survey showed the cost often outweighs the benefits.
“There is a learning curve with how to use technology,” he says. “A lot of farmers have had the option to see them or use them on their own farms, but once we incorporate cost, the general benefit goes away.”
But, he told Brownfield Ag News there are some exceptions.
“Yield monitors and grid soil sampling were the only two that showed some relationship in their ability to generate gross revenue,” he says. “The real value comes with bundling these two technologies together and that’s really where you would see some benefit in farm efficiency.”
Fiechter says farmers see the highest return on their investment when precision ag technology is used quickly and effectively.
EDITOR’S TAKE:
Interesting analysis. When precision ag was first introduced, it was used more with higher value crops, such as vegetables. Later, as prices for the technology and university research results confirmed the efficacy of various concepts, it began to spread to more common commodities, such as corn and soybeans. It is noteworthy that some of the very first technologies, like grid soil sampling and yield monitors, are the ones that still benefit farm efficiency allowing for significant return on investment. Other technologies seem to be more dependent on the size and scale of the particular farming operation, with larger farms/ranches being able to spread costs and utilize additional forms of precision ag.
Speaking of return on investment, be sure you emphasize how farmers/ranchers can take advantage of AgPack® when purchasing that new or qualified used truck or SUV. With nearly $50,000 in exclusive rebates and discounts on products they might use on the farm/ranch, that amounts to real savings for their operation – recognizing an impressive ROI on their truck investment!
