Adoption of Precision
Agriculture
The greatest technology push has been in
precision agriculture (or site-specific management,
SSM)—where sensing, information technologies,
and mechanical systems enable sub-field crop
management. Despite this push, acceptance
by the agricultural community has been hesitant
and weak, although most producers admit they
will have to adopt SSM technology eventually.
Most see initial cost, uncertain economic
returns, and technology complexity as limiting
factors. Furthermore, in light of recent
and anticipated regulatory requirements for
nutrient release and water/air quality, many
producers believe the environmental benefits
of SSM might be the eventual driving force
for technology adoption.
Nevertheless, small- and medium-sized producers
have a distinct disadvantage over large producers.
In high-volume agriculture, economies of
scale and narrow profit margins provide an
economic advantage to large producers. Furthermore,
large producers tend to have more education
and are less wary of technology than smaller
producers. These characteristics of production
agriculture suggest that most technological
advances, including SSM, are not scale neutral.
Furthermore, the factors limiting SSM adoption
generally, noted above, are also less problematic
for larger producers, giving them an additional
competitive advantage. One way for smaller
producers to combat these competition trends
is to create, or reach into, unique markets
where their small size is an advantage. Value-added
products expand the profit margin for producers
who are positioned to provide enhanced value
to consumers—which is more often the
case for small producers who deal with small
quantities of raw products and have more
direct access to consumers.
In addition, smaller producers can become
more competitive in a technology world by
mitigating the barriers to adoption. By spreading
the initial cost of technology over many
producers and by sharing information about
how to use the technology, smaller producers
may have a better entrée into technology
adoption and its benefits, which are currently
held by large producers. University extension
programs provide valuable educational and
application assistance to help producers
become more familiar with, and use, new technologies.
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