Purdue Long-Term Farm Study Finds Precision Ag ROI Not Guaranteed Across Operations

Chad Fiechter joins us to discuss Purdue’s precision ag study, challenges in capturing value from technology, and what farmers should consider when investing in and adopting these tools.

CLAAS tractor aerial_Photo By Countrypixel via AdobeStock_397730636.png

An aerial view of CLAAS brand machinery at work.

WEST LAFAYETTE, INDIANA (RFD NEWS) — Many producers are incorporating precision ag technology to boost profitability, but new research suggests extracting value from those tools may be more complex than expected.

Chad Fiechter from Purdue University joined us on Thursday’s Market Day Report to discuss a recent study examining how precision agriculture impacts farm efficiency and revenue.

In his interview with RFD News, Fiechter explained the study focused on Kansas farmers over a 20-year period, measuring their ability to generate gross revenue efficiently. He noted that bundles of precision ag technologies were not directly tied to improved efficiency, highlighting that capturing value from these tools may be more challenging than previously thought.

He also discussed common challenges in adopting precision ag, noting a learning curve with more complex tools such as variable-rate applications and soil sampling. In contrast, simpler technologies such as GPS guidance showed clearer efficiency gains.

Fiechter said the findings were surprising, especially given his own background in farming and interest in technology, emphasizing that the results do not diminish the value of precision ag but instead point to a need for better understanding of how to use it effectively.

He added that farm size and management play a role, with less efficient operations seeing more measurable benefits, while results can vary widely across farms. He also noted that return on investment can take time, encouraging producers to be patient and focus on learning how to best utilize the technology rather than adopting every new tool.

Related Stories
Strong cattle markets are masking ongoing financial stress across crop agriculture.
Record ethanol demand continues supporting corn markets and rural economies.
Purdue University’s Dr. Michael Langemeier discusses the survey’s findings in February and broader signals in the months ahead.
Roger McEowen of Washburn University School of Law joined us to discuss key legal and tax issues ranchers should consider as they recover from recent prairie fires across the Southern Plains.

Marion is a digital content manager for RFD News and FarmHER + RanchHER. She started working for Rural Media Group in May 2022, bringing a decade of digital experience in broadcast media and some cooking experience to the team.

LATEST STORIES BY THIS AUTHOR:

The Louisiana cotton crop is the smallest on record, but strong yields are a silver lining. LSU AgCenter’s Craig Gautreaux reports from northeast Louisiana.
Soybean farmer and Arkansas Lt. Gov. Leslie Rutledge highlights why the U.S. trade standoff with China is especially critical for Arkansas producers.
NEFB President Mark McHargue provides an update from the Husker State, where farmers are working hard to bring in one of the largest harvests in recent years.
Todd Miller, CEO of Head Honchos, shares about his business offering to ease agricultural labor shortages.
The National FFA Organization hosts the Washington Leadership Conference, where thousands of FFA members gather to learn how to be change makers in their communities.
Having a good read on fuel prices is a must during harvest, but one analyst says grain farmers should also be watching the crude oil markets.
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.
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.