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Educating producers on the profitability of precision agriculture technologies

Published online by Cambridge University Press:  01 June 2017

J. Shockley ,
T. Mark  and
C. Dillon
J. Shockley*
Affiliation:
University of Kentucky, Department of Agricultural Economics, Lexington, Kentucky, USA
T. Mark
Affiliation:
University of Kentucky, Department of Agricultural Economics, Lexington, Kentucky, USA
C. Dillon
Affiliation:
University of Kentucky, Department of Agricultural Economics, Lexington, Kentucky, USA
*
† Email: jordan.shockley@uky.edu
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Abstract

Producers are often faced with information from industry touting a generic return on investment of precision agriculture technologies that are inflated through the use of simple techniques that ignore the time value of money. The economics of precision technologies are as site-specific as the technology. Therefore, educating producers (and agribusiness) on how to determine the return on investment by following the correct investment analysis techniques within a proper decision-making framework helps ensure an accurate site-specific return on investment for precision agriculture technologies.

Keywords

economicsextensionreturn on investmentrisk management

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References

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