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PROFITABILITY,ANDMAKINGBETTER
USEOFDATA
T.W.Griffin,J.LowenbergDeBoer,D.M.Lambert,andJ.Peone
SiteSpecificManagementCenterPurdueUniversity
T.PayneandS.G.Daberkow
USDAERS
3partpresentation
1)AdoptiontrendsintheUSandWorldwide
2)ReviewofPAprofitabilityliterature
3)Makingbetteruseofyieldmonitordata
AdoptionTrends
Worldwidenetworkofcollaborators
USDAARMSstudy
PAServicesDealershipSurvey
WhipkerandAkridge,2004
CombineYieldMonitors
YieldMonitorGrainFlowSensor
YieldMap
Loweryields
Higheryields
ActualAdoptionRatesofU.S.YieldMonitors
Approximately30,000in2000
45,000in2003
Source:before1995Mangold
After1995USDAARMS
ActualAdoptionRatesofU.S.YieldMapping
YieldMonitorplusaGPS
Source:USDAARMS
EuropeanYieldMonitorUse
Total Permillionacres
Germany 4250
UnitedKingdom
Denmark 400
Sweden 150
France
50
Holland 6
Belgium 6
Spain
5
Portugal 4
212
400
100
48
2
11
7
0
3
2003
43
2000
2000
2000
2000
2000
2003
2003
2000
Year
LatinAmericanYieldMonitorUse
Argentina
Brazil
Chile
Uruguay
Total
1000
100
12
4
Permillionacres
17
1
8
3
Year
2003
2002
2000
2000
Yieldmonitorsbycountry
permillionacres
SoilMappingAdoption
Source:USDAARMS
RemoteSensingAdoption
Redefined
question
in2002
Source:USDAARMS
AdoptionofVRTFertilizer
Source:USDAARMS
AdoptionofVRTinCorn
Source:USDAARMS
AdoptionofVRTinSoybean
Source:USDAARMS
AdoptionofVRTinCotton
Source:USDAARMS
VRTOfferedbyAgRetailers
67%ofserviceprovidersofferVRT
40%offersinglenutrientVRT
Stilllessthan50%by2006
23%offermultinutrientVRTin2004
28%ofprovidersexpecttoofferby2006
<10%offerVRTseeding
Source:WhipkerandAkridge,2004
ServiceProvidersOfferingVRT
fertilizer,lime,andpesticides
Source:WhipkerandAkridge
VRTFertilizerbyRegion
Source:WhipkerandAkridge,2004
GPSLightbars
PurdueDavisFarm
GPSLightbarGuidance
usedbyServiceProviders
61%offer
applicationswith
GPSguidance
72%inMidwest
39%inotherstates
Source:WhipkerandAkridge,2004
GPSAutoGuidance
5.3%ofdealersuseGPSautoguidance
4.2%inMidwestand7.4%inotherstates
Regionaldifference?
Source:WhipkerandAkridge,2004
OnthegoSensors
SoilDrbeenaroundthelongest
Greenseeker
NorskHydroNsensor
~320totalunits
~300inEurope
SensorsforMapping
SoilpHsensoravailable
VerisMobileSensorPlatform>5sold
Ksensorbeingdeveloped
7.8%ofdealersoffersoilECmapping*
*Source:WhipkerandAkridge,2004
FundamentalConstraintsofAdoption
Lackofresearchsupport
Humancapitalcosts
Lackofeducationandtraining
FundamentalConstraintsofAdoption
Lackofsupportandconsulting
Highopportunitycostofmanagementtime
Informationintensive/embodiedknowledge
Informationintensivevs.
Embodiedknowledge
Informationintensive
Embodiedknowledge
Fieldleveldatato
makedecisions
Informationpurchased
intheformofaninput
Requiresadditional
dataandskill
Requiresminimal
additionaldata/skill
VRTandprecision
agriculture
Hybridcorn
IPM
RoundupReadyorBt
FundamentalIncentivesofAdoption
Technologycostsaredeclining
Incorporationoftechnologyinsociety
GPSincarsandboats
Increasedcomfortlevelwithtechnology
USDAFSAandNRCSusingGISwithfarmers
FundamentalIncentivesofAdoption
AutomatingRecordKeeping
Identitytrackingofcommodities
Pesticiderecordkeeping
Environmentalregulationsmonitorinputuse
Mayleadintocostsharingforadoption
FundamentalIncentivesofAdoption
Autoguidancesystems
Increasefarmsizewithsameequipmentset
Reduceoverlap,expandworkday,increasespeed
Matchequipmentoperations(6,8,12row)
Controlledtrafficking
Striptill
EconomiesofScaleinDataAnalysis
Skilltoanalyze2000acworksfor20,000ac
PotentialforPAconsultingoutsourcing
Complementarygoodsandservices
Part2:PAProfitabilityReview
StandaloneVRTfertilizeroftendoesnot
covercosts
SwintonandLowenbergDeBoer(1998)
In2000,63%ofstudiesshowedprofits,but
budgetmethodsnotstandardized
LambertandLowenbergDeBoer(2000)
Economicsofprecisionagriculturearesitespecific
ProfitabilityStudiestoDate
Reviewed234articles
210reportedsomekindofbenefitorloss
Ofthose,68%reportedpositivebenefits
52%ofstudiesinvolvedaneconomist
ArticlesbyTechnology
ArticlesbyCrop
Part3:BetterUseofData
Manyfarmerscollectingdata
10+yearsandseveralmegabytes
Questionremains:whattodowiththedata?
Noonehasalltheanswers
Isdatavaluableenoughtojustifyprocessing?
BetterUseofData
Betterfarmlevelexperimentaldesigns
Spatialstatisticalmethods
Morereliablelocalinformation
BetterExperimentalDesigns
Smallplotdesignsdeveloped70yearsago
Blockingandreplicationsneutralizevariability
Precisionagriculturemeasuresvariability
Spatialstatisticscanmodelvariability
BetterExperimentalDesigns
Opportunityforfewerreplicationlargeblocks
Typesofcomparisonsfarmertendtoconduct
Experimentaldesignsbeingtestedin4states
Farmerfeedbackcrucialtoevaluation
64acrefield
Satelliteimage
takeninJuly
Redoutlineis
fieldboundary
Planned
comparison
design
3varieties
Singleblock
nonreplicated
Note:soiltypes
areoutlinedin
blue
Eachvarietyis
representedon
eachmajorsoil
type/zone
Oncedesignsare
decideduponin
offseason,
implementation
issimpleat
plantingtime
Treatmentscan
bechangedat
normalplanter
refillingtimes
Soybeanharvest
canbeconducted
atanyangleto
planterpass
YieldMonitorDataAnalysis
Yieldmonitordataanalysisservicepilotproject
37thAnnualTopFarmerCropWorkshop
July1821,2004
Morereliableresultsgained
http://www.agecon.purdue.edu/topfarmer
Summary
Adoptionhasbeenslowanduneven
Economicswelldocumentedmanystudies
Informationintensivevs.embodiedknowledgeag
Needforanalysisservicestoovercomeconstraints
RoleofExtensionFarmManagement
Thirdpartyevaluationdesperatelyneeded
Firmunderstandingofprecisiontechnologies
Helpfarmersdevelopownrecommendations
insteadofsupplyinganswer
Onfarmcomparisons
RoleofExtensionFarmManagement
Assistfarmersandagbusinessesin
understandingeconomicsofinformation
Barrierstoadoptionareanopportunityfor
extensiontobemorerelevant
TerryGriffin
twgriffi@purdue.edu
765.494.4257
SiteSpecificManagementCenter
PurdueUniversity
http://www.purdue.edu/ssmc