Economics of precision agriculture

Publication date: 21-11-2025
Extent: 26 pages

Contributions by: Søren Marcus Pedersen, Tseganesh Wubale Tamirat and Kassa Tarekegn Erekalo, University of Copenhagen, Denmark

Chapter synopsis:

Within the last 30-40 years several PA technologies have become commercially available however adoption exhibits wide variability across geography, farm type and operator demography. Evidence on economic (financial) feasibility of PA technologies is mixed. The economic profitability of PA and STF depends on potential yield, cost savings related to field conditions and heterogeneity, investments costs and potential scale advantages in regard to farm size, as well as synergies among PA technologies. In addition, external factors such weather conditions prices, environmental subsidies and regulations and may also have an impact. So far, studies on PA have shown mixed results regarding economic returns from using variable rate applications.

DOI: 10.19103/AS.2025.152.22