The Economics of Precision Agriculture (PA) and Resource Efficiency: Digital Technologies for Sustainable and Profitable Farming

Precision agriculture (PA) has emerged as a transformative approach for improving agricultural productivity, resource-use efficiency, and environmental sustainability through the integration of digital technologies, including Global Positioning Systems (GPSs), Geographic Information Systems (GISs), remote sensing, the Internet of Things (IoT), artificial intelligence (AI), machine learning (ML), and autonomous systems. Although previous reviews have primarily emphasized technological innovation, adoption trends, or environmental outcomes, they have provided limited synthesis of the economic mechanisms linking technology adoption, resource allocation, production efficiency, investment performance, and long-term sustainability. A structured narrative–systematic review was conducted using peer-reviewed research retrieved from Scopus, Web of Science, and Google Scholar, covering studies published between 2004 and 2026. An integrated analytical framework combining technology adoption theory, resource economics, and production-efficiency models was employed to explain how digital technologies generate economic value while identifying methodological limitations, geographical bias, unresolved research questions, and future research priorities. The review demonstrates that GPS-guided machinery, variable-rate technologies, smart irrigation systems, AI-driven decision-support tools, and integrated digital platforms improve water- and nutrient-use efficiency, labor productivity, production efficiency, and farm profitability. However, economic performance remains highly context-dependent, varying according to farm size, crop type, climatic conditions, institutional support, digital infrastructure, resource scarcity, and policy environments. Methodological inconsistencies in return on investment (ROI), net present value (NPV), lifecycle costing, ecosystem-service valuation, and environmental externality assessment reduce comparability among studies and complicate evidence-based policymaking. The review further identifies a pronounced geographical concentration of evidence in North America, Europe, and Australia, with comparatively limited understanding of PA economics in China, India, Brazil, Sub-Saharan Africa, and Southeast Asia. Persistent challenges include high capital costs, unequal access among smallholder farmers, data governance concerns, interoperability limitations, uncertainty in long-term investment performance, and limited integration of agricultural insurance, climate-risk management, and digital finance. By integrating economic theory, methodological comparison, geographical analysis, sustainability valuation, and policy perspectives within a unified conceptual framework, this review highlights the need for standardized economic evaluation methodologies, broader geographical representation, and interdisciplinary research to support evidence-based policy and the sustainable digital transformation of global agriculture.