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Project Title:  An Evaluation Of The Economic Impact Of Precision Agriculture Technologies In Mississippi Crop Production
Principal Investigator:  Steven W. Martin
 

Background: 

The technologies of remote sensing, including airborne and satellite imaging, global positioning systems, precision agriculture, and geographic information system software, have been introduced to Mississippi farm production in a variety of ways, most of which deal with the techniques and procedures.  Few studies are available for evaluation of the economic impact of these technologies when used as they should be, in combination.  Though the general area of “precision agriculture” has been documented in several geographic areas, it is typical of a farm community that new procedures are not well-received until it is proved to the local producers that they will work under local conditions.  A number of projects have been funded over the past few years in the ASTA and RSTC programs; these have developed sufficient data to effectively evaluate the economic viability of the technologies in a production setting.  Therefore, the objective of this project is to evaluate a selected subset of the pertinent ASTA and RSTC projects, as well as previous and current on-farm activities associated with ASTA, RSTC, and extension efforts, from an economic perspective. 

Proposed Approach: 

1.     Select one of the major crops of Mississippi; it is recommended that the first phase of the project address either cotton or soybeans, as crop production costs for these are well understood. 

2.     Select two to three geographic locations within the State which represent different crop management styles for the chosen crop; for example, one area might include Delta cotton production, and the other may represent the Hill Country cotton.  Treat each of these areas separately, as though the other does not exist, so that data from each remain pure. 

3.     Document and analyze crop production costs for a representative farm size for each area; disregard extraordinary farm sizes and farm operations.  This should be an examination of common practices, not one of uncommon activities.

4.     Using expertise from knowledgeable Extension, University, and the farm community, examine the production practices in each area, looking for those that can be made more efficient, reduced, replaced, or eliminated through the use of remote sensing and precision agriculture technologies.  Document the cost and effects of the activities. 

5.     Locate, examine, and document the commercial costs of the application of precision agriculture and remote sensing technologies in each area.  Be aware that research costs are not appropriate, and that the costs in one area may well be different from those in another.  The intent is to define and relate the most-likely costs that would be incurred by a farm due to the use of the technologies. 

6.     Locate, examine, and document the activities and costs that may be incurred if a crop management consultant group or individual is required to utilize the precision agriculture or remote sensing technologies.  It is likely that some areas will not have a farm production community sufficiently familiar with the technologies to use the advanced capabilities without outside assistance. 

7.     Define, examine, and document the features, advantages, and benefits of each step of crop production procedures in each area, assigning costs to each; relate the economic impact of the use or non-use of advanced technologies to the total cost of production.  Include possible differences in crop quality, ease of harvest and processing, meeting of Government regulations, or other aspects which may be recognized as significant. 

The intent of this project is to determine as well as possible the costs associated with the use of advanced technologies in representative examples of Mississippi crop production.  Properly done, the format of the study should be applicable to any crop in any location, so experimental design is critical.  Questions that should be answered by this procedure include: 

A.          How much does it cost to use precision agriculture and/or remote sensing technologies in Mississippi agriculture? 

B.           What are the technical reasons to do or not do so? 

C.          What are the economic reasons to do or not do so? 

D.          What equipment does an individual (consultant, farmer, Extension agent) need to use the technologies?  What are the minimum specifications for equipment?  What will that cost?  What is the current recommended setup, including software?  What will that cost?  Where can the individual get it? 

E.           What do we not know about the economic impact of these technologies?  What recommendations can be made to fill that gap?

 

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Last Modified: 01/06/2004