Grow your digital ag strategy

WEST LAFAYETTE, Ind. — Does investing in on-farm technology pay off?

The answer is complicated and varies farm to farm. But in short, yes.

Precision agriculture technologies have some small but positive impacts on farm outcomes, said Nathanael Thompson, assistant professor at Purdue University, at Commodity Classic.

“In 2016, (David) Schimmelpfennig reported that precision ag technologies increase farm net returns between 1% and 2%,” Thompson said. “Another study at Purdue suggested that as you add tools to the bundle of precision ag technologies on your farm, that increases efficiencies somewhere between 3% to 10%, meaning that you’re able to produce more yield relative to the inputs you use.”

Technology Tips

Thompson shared three tips for farmers to keep in mind:

1. There is no silver bullet.

“No one technology is the key,” Thompson said. “Digital agriculture is a system. It requires a suite of technologies. You need to figure out what fits your farm best.”

2. Think about touch points.

“Think about how many touch points you have with your data,” Thompson said. “Is there someone on your farm using software to analyze data or create a map? If not, are you willing to share that data with a trusted service provider who can help you generate information that turns into actionable decision on your farm?”

3. The key to success is to develop a strategy that fits you and your farm.

“In light of the fact that precision agriculture is influencing farm outcomes, you need to think about where your farm sits in terms of technology use, and what resources might be able to help your farm generate more value from its data,” Thompson said.

“Even if these technologies have small impacts on farm outcomes, that could have big implications on farm structure and future consolidation.”