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3 Adoption of Precision Agriculture
Pages 65-89

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From page 65...
... Components of that suite of technologies currently in use include GPS receivers; GIS data bases; variable-rate application equipment for seed, fertilizers, and pesticides; grid soil sampling; low-volume irrigation; yield monitors; sensors for soil fertility and weed populations; and remote sensing imagery. Different configurations of components of that suite will be suitable for different operations.
From page 66...
... Diffusion of New Technologies There is a large body of economic and sociological literature on technology adoption in general, as well as on information-intensive agricultural technologies such as computers, integrated pest management (IPM) , low-volume irrigation systems (drip, center-pivot, and other sprinkler systems)
From page 67...
... For example, use of low-volume irrigation technologies is more widespread in areas where water prices are higher, so that savings in water costs are more likely to outweigh initial investment costs for drip systems (Caswell and Zilberman, 1985; Dinar and Yaron, 1990; Dinar et al., 1992; Negri and Brooks, 1990; Shrestha and Gopalokrishnan, 1993~. The use of computer services is more widespread among dairy operators than other kinds of producers because computerization reduces the management time and cost involved in herd improvement (Huffman and Mercier, 1991; Putler and Zilberman, 1988~.
From page 68...
... , as has the use of CIMIS for irrigation management (Parker and Zilberman, 1996~. Adoption of drip irrigation for sugar in Hawaii has been greater on farms where yield differentials between drip and sprinkler systems are higher (Shrestha and Gopalokrishnan, 1993~.
From page 69...
... These early adopters tend to have greater human capital or be more accepting of risk. Other producers may believe that the new technologies will not be profitable enough to justify the cost of adopting them (the cost of new equipment, plus the costs of restructuring farm operations and training)
From page 70...
... Examples include the rapid diffusion of drip irrigation in California during the droughts of 1976-1977 and 19881991, when water prices rose sharply and water availability declined sharply; conservation tillage during the energy crisis years of the 1970s, when energy prices rose sharply; and center-pivot irrigation in the High Plains after the grain price spikes of 1973-1974 (Lichtenberg, 1989~. It is important to recognize that producers are buying the services of the technology, not the equipment that embodies the technology.
From page 71...
... The public sector frequently also plays an important role in training and thus augmenting the supply of human capital in agriculture. For example, land grant universities have provided the basic training in crop and pest management sciences underlying IPM, and extension agents in many states provide specific pest management training needed to implement IPM (see, for example, Carlson, 1980; Zilberman et al., 1994~.
From page 72...
... . Available evidence indicates that the cost of many precision agriculture services is modest, especially when spread over sufficient acreage, as can be done by a custom applicator (Table 3-1~.
From page 73...
... Similarly, variable-rate applicators combined with fertility mapping allow producers to vary fertilizer application rates in response to natural variations in soil fertility. Calibrating inputs according to conditions at subfield levels is likely to result in increased yields.
From page 76...
... Net returns with variable-rate nitrogen application, where the rate was based on a constant nitrogen application rate per bushel of yield goal, were roughly equal to net returns with conventional uniform nitrogen application, where the application rate was determined the same way; inclusion of soil testing costs would make the variable-rate system less profitable. However, when variable nitrogen application rates were calibrated according to a non-linear nitrogenresponse relationship, the variable-rate system was clearly more profitable, even with soil testing costs taken into account.
From page 77...
... A Purdue University survey of agricultural chemical dealers showed that between 39 and 47 percent of firms offering site-specific services were charging no fee for the service, folding costs into product prices instead. Input suppliers perceive impediments to providing precision agriculture services to include the cost of equipment (61 percent)
From page 78...
... For example, computer software such as nutrient or pest management recommendation models will need to be adapted to local (even farm-level) conditions (which tend to vary substantially)
From page 79...
... Effects on Rural Employment Precision agriculture represents an increase in specialization, that is the division of labor, involved in agriculture. In adopting precision agriculture techniques, farmers substitute purchased information services (in forms as varied as consultant services, specialized equipment, and computer software)
From page 80...
... The extent to which such increased employment occurs in rural areas depends largely on the combination of direct services and turnkey products through which precision agriculture services are delivered. The greater the extent to which growers purchase precision agriculture services directly, the greater will be the demand for locally based skilled technical labor such as crop consultants and computer software developers and customizers.
From page 81...
... There is concern in particular that the net benefits of precision agriculture are greater for larger operations. It is difficult to assess how the net benefits of precision agriculture vary across farm size because precision agriculture is a suite of technologies whose specific components differ across farms.
From page 82...
... Larger operators are more likely to have larger, more heterogeneous fields, and may thus find soil sampling more costly. Crop consultants typically charge a flat per-acre fee for their services, in which case the cost of these services does not vary with farm size.
From page 83...
... nor adoption of modern irrigation technologies in citrus groves in Israel shows a significant relation to farm size. For both low-volume irrigation technology and scouting, farm size appeared to be positively correlated with adoption in areas which were in the early stages of the technology diffusion process and not correlated in areas in the later stages of the process.
From page 84...
... Part-time farms earn 90 percent or more of their income from off-farm sources. Commercial farms (annual sales over $100,000)
From page 85...
... Adjusting fertilizer application rates to match variations in soil fertility at the subfield level should result in less excess
From page 86...
... The extent to which more precise input applications might reduce environmental conditions is by no means clear. A number of field-level experimental studies indicate that variable-rate nitrogen fertilizer application can reduce the nitrogen application rate needed to attain given yield levels.
From page 87...
... In the long term, potential environmental improvements will constitute an economic incentive for adopting precision agriculture only in areas where producers bear at least a share of the costs of agricultural pollution. The problem of drainage in the San Joaquin Valley, California, is a case in point.
From page 88...
... There is thus no unambiguous evidence indicating that precision agriculture favors larger operators. In general, neither economic theory nor experience with earlier information-intensive agricultural technologies indicates unambiguously that larger operations will have greater access to or advantage in using technologies such as those characterizing precision agriculture.
From page 89...
... The potential of precision agriculture technologies to reduce pesticide applications is still not well known. Some benefits may accrue from localized herbicide treatments.


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