Precision Agriculture Technologies and Farm Profitability

This paper uses the staggered difference-in-difference model to assess the ex post impact of precision agriculture (PA) technology adoption on whole-farm profitability. The results indicate that PA technologies do not contribute as much to farm profitability when analyzed over a period of time. PA technologies may increase some operational efficiency, but farmers should not adopt PA assuming that it will improve farm profitability. The positive contribution of a majority of PA technologies to farm profitability has not yet been established.


Dhoubhadel, Sunil P., Precision Agriculture Technologies and Farm Profitability, Journal of Agricultural and Resource Economics, Volume 46, Issue 2, May 2021, Pages 256-268

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