Whole farm economic analysis of precision farming practices

Studies were conducted in 2001 and 2002 to further develop farm level precision agriculture technologies and evaluated the economic benefits. A 33-acre field of Cumbaa Farms was divided into three distinct management zones based on soil electrical conductivity measured with a Veris® Soil Mapping System. Zones were labeled 1, 2, and 3, respectively, as clay content increased. Variable rate technology was used to apply production inputs such as seed, nitrogen fertilizer, plant growth regulator, and insecticide. The objective of the precision farming technology was to bring the lower yielding zones (2 & 3) up to the level of zone 1. Savings associated with the precision farming technologies were based on deviations from the inputs used on zone 2, which were considered the 'norm.' Benefits derived from the total precision farming program were based on yield increases per zone over the five years that yield records were available. The precision farming practices in this 33-acre field resulted in a six percent net yield increase. There was $0.02 per acre seed cost savings associated with precision planting the field. Insecticide costs were also reduced $1.04 per acre in 2001 and $2.45 in 2002. Plant growth regulator expense was reduced in 2002 by $1.27 per acre. Fertilizer costs however increased in each year, $0.19 per acre in 2001 and $0.07 in 2002. The net result of these savings amounts to $0.97 per acre in 2001 and $3.66 in 2002. If the acreage were expanded to 750 acres, (i.e., maximize cotton picker capacity) the costs of precision farming equipment would be reduced from $150.29 per acre to $11.80 per acre, therefore become somewhat more realistic. In addition, much of the precision farming equipment could be used for other crops, which would reduce the cost per acre by distributing the cost over a much larger acreage.