Precision Agriculture Returns Vary Widely Across Farm Operations

Technology returns depend on management, not just adoption.

farmer holding a tablet_Photo by artiemedvedev via AdobeStock_362770913.jpg

Photo by artiemedvedev via AdobeStock

NASHVILLE, TENN. (RFD NEWS) — Precision agriculture technology is not consistently improving farm profitability, with most tools delivering limited measurable efficiency gains.

Research from Purdue University agricultural economist Chad Fiechter shows that across seventeen technology combinations, only automated guidance and the combination of yield monitors with grid soil sampling produced meaningful efficiency improvements. Most other technologies added costs without generating enough additional revenue to offset them.

Farm-Level Takeaway: Technology returns depend on management, not just adoption.
Tony St. James, RFD NEWS Markets Specialist

The results highlight a key challenge for producers. Automated guidance provides immediate benefits with minimal learning, while data-driven tools require time and management skill to turn information into better decisions. Without that, financial returns are difficult to capture.

Farm-level impacts vary significantly. Less efficient operations saw the greatest improvement, suggesting technology can help close management gaps. However, highly efficient farms showed little additional benefit from adoption.

The findings reinforce that technology alone does not guarantee better performance, with management and cost control remaining critical drivers of profitability.

Extracting Value from Precision Agriculture Technology is Difficult

Related Stories
If confirmed, early Chinese buys tighten nearby Gulf/PNW capacity and could bump basis in export-oriented regions.
Trade pacts with Malaysia and Cambodia unlock tariff-free and preferential lanes for key U.S. farm goods, expanding long-term demand in Southeast Asia.
Alan Bjerga, Senior Vice President of Communications with the National Milk Producers Federation (NMPF), shares updates and resources available to dairy producers.
FarmHER Erin Cumings shares how Nationwide’s “Every STEP Counts” helps farm and agribusiness owners prioritize safety.
Input costs are top of mind for farmers, as they contribute to higher prices and smaller profits.
The President’s trip to Asia this week follows a trade mission by the Iowa Soybean Association. Farmers say they were reminded that U.S. soybeans have an international reputation that can be easy to take for granted here at home.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Brazil’s ethanol growth could shift the corn trade.
Fuel costs are shaping food and demand patterns.
Strong demand persists despite short-term price pressure.
High prices alone may not drive herd expansion.
Cotton may gain demand as polyester costs rise.
Trust with lenders strengthens farm financial decision-making.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.