Factors influencing the profitability of precision farming systems

The emerging site-specific management (SSM) technologies will allow farmers to manage each parcel of land in a manner consistent with its unique endowments. The consequence of reducing the scale of land area that is managed uniquely is to substantially reduce the number of cropped acres for which inputs are either over- or under-applied. The potential impact of SSM on farm receipts, variable input costs, and fixed investment costs are explored. The likely impact of farm size on profitability of SSM adoption also is explored. A hypothetical case is implored to chnonstrate the economic value of various components of SSM. Finally the potential environmental consequences of SSM for society are explored.