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
Acreage shifts could impact pricing and marketing plans.
Herd growth and exports supporting dairy outlook.
Strong exports continue to support corn despite larger supplies.
Crush demand is supporting soybeans despite biofuel uncertainty.
Bigger stocks may limit upside in cotton prices.
Export growth remains key for grain profitability.

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:

Tight supplies continue supporting strong cull values.
China’s stricter inspection rules prompt Cargill to pause soybean exports from Brazil, briefly lifting U.S. soybean prices as traders anticipate potential shifts in global trade, as export demand remains supportive across all major U.S. commodities.
Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Refining shifts could influence fuel and input costs.
Agriculture Shows
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.
From soil to harvest. Top Crop is an all-new series about four of the best farmers in the world—Dan Luepkes, of Oregan, Illinois; Cory Atley, of Cedarville, Ohio; Shelby Fite, of Jackson Center, Ohio; Russell Hedrick, of Hickory, North Carolina—reveals what it takes for them to make a profitable crop. It all starts with good soil, patience, and a strong planter setup.
Champions of Rural America is a half-hour dive into the legislative priorities for Rural America. Join us as we interview members of the Congressional Western Caucus to learn about efforts in Washington to preserve agriculture and tackles the most important topics in the ag industry on Champions of Rural America!
Farm Traveler is for people who want to connect with their food and those who grow it. Thanks to direct-to-consumer businesses, agritourism, and social media, it’s now easier than ever to learn how our food is made and support local farmers. Here on the Farm Traveler, we want to connect you with businesses offering direct-to-consumer products you can try at home, agritourism sites you can visit with your family, and exciting new technologies that are changing how your food is being grown.