The greatest technology push has been in precision agriculture (i.e., site-specific management, SSM or precision livestock farming, PLF)—where sensing, information technologies, and mechanical systems enable individual animal or sub-field crop management. Despite this push, implementation by the agricultural community has been inconsistent across commodities, although a large number of producers plan to adopt precision 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. Potential for improved animal welfare, productivity, and management cost savings may drive the field adoption of PLF technologies.
Nevertheless, small- and medium-sized producers have distinct needs compared to large producers. In high-volume agriculture, economies of scale and narrow profit margins provide an economic advantage to large producers. These characteristics of production agriculture suggest that most technological advances, including SSM and PLF, are not scale neutral.
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.