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
Cover crops may improve soil and reduce input needs over time, but producers should budget carefully before expanding acreage.
Higher ocean freight rates continue adding pressure to U.S. wheat exports despite stronger demand projections.
Rising input costs continue weighing on producer outlooks despite stronger expectations for land values.

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:

Dr. Jeffrey Gold joins us on Rural Health Matters to discuss rural mental health awareness, the importance of reducing stigma in agriculture, and resources available to farmers, ranchers, and rural families seeking support.
Utah Senator John Curtis joins us for “Champions of Rural America” to discuss new legislation to improve forest management and wildfire prevention and its broader implications for rural communities and infrastructure.
NRECA CEO Jim Matheson joins us to discuss rural electric co-ops’ push for expanded USDA loan programs, rising energy demand from data center expansion, wildfire mitigation and other policy priorities impacting rural power infrastructure.
StoneX’s Josh Linville discusses USDA’s efforts to boost domestic fertilizer production and his outlook on supply and prices.
With the Farm Bill now in the Senate’s hands, industry groups say the stakes are high—and timely action could be critical for producers navigating a difficult economic environment.
The Texas Department of Agriculture confirmed a New World Screwworm case about 119 miles from the Texas border, near Zapata, Texas, and north and west of the Rio Grande Valley.
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.