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
Considering raising your own replacements instead of buying bred heifers? Three key factors to consider before investing capital.
Microsoft’s partnership with the National FFA Organization is helping future ag leaders gain the tools they need to drive innovation in farming and beyond.
Reliable, clearly graded middle meats still anchor demand; programs that deliver consistent eating quality and simple, confidence-building menus capture more repeat visits—and more value—back through the beef chain.
Prepare for tighter cash flow, delayed capital buys, and policy-driven risk management this fall.
Jed Bower, the incoming president of the National Corn Growers Association, joined us for his sector’s perspective on the ongoing government shutdown.

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:

Bridge payments are helping, but many producers still face losses and tight margins. AEM’s Curt Blades joins us to discuss how the current farm economy is pressuring equipment demand.
Rising ethanol stocks and softer gasoline demand bear watching, but stronger blending activity and exports offered some support.
Corn export demand remains supportive, but weak pork and rice sales show uneven global demand trends.
Rising poultry supply is pressuring prices despite steady demand.
Brazil’s ethanol growth could shift the corn trade.
Fuel costs are shaping food and demand patterns.
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.