Three Essays on the Economics of Precision Agriculture Technologies

This study consists of three essays focused on economic issues related to cotton precision farming (PF) technologies in the Southeastern region of the United States. Precision farming technologies are typically delineated as either site specific information gathering (SSIG) technologies or as variable rate technologies (VRT). The first essay investigates the effect of farmers' perceived spatial yield variability on precision technology adoption. We extend the theoretical model developed by Isik and Khanna (2002) and find empirical evidence that farmers who perceive their yields as variable will more likely adopt at least one of the precision farming components. In addition, farmers who use computer in their farm management, believe that the technology will be profitable and important in the future, acquire precision farming information through university publications, as well as younger ones who plan on being in the industry for more years, will more likely adopt at least one of the technology's components.;The second essay explores factors that differentiate environmentally motivated farmers (i.e., those who rank environmental benefits higher than profit, based on a Likert style ranking) from farmers who make decisions based solely on financial criteria. To achieve this objective, we apply a proportional odds model that accounts for the ordered nature of the dependent variable. Our results indicate that participation in agricultural easement programs, perceived importance of precision farming (PF) in the future, as well as the perceived improvement in environmental quality following the precision technologies' use, all positively influence the decision to adopt for environmental reasons. In contrast, educational attainment and use of University Publications to acquire information about precision agriculture have a positive impact on adoption based on profit motives. A second issue that we study is examining the factors that affect farmers' perceptions about perceived improvements in environmental quality following the precision technology adoption.;The third essay examines the factors affecting the duration of duration of use of soil sampling and yield monitor technologies. A duration analysis that accounts for selectivity bias is used to investigate the impact of different variables on the speed of abandonment. The estimated Weibull model for soil sampling suggests that farm size is the most important determinant in using soil sampling. Farmers with larger farm sizes tend to use soil sampling for a shorter period of time. On the other hand more experienced farmers with longer planning horizons, whose income comes mainly from farming sources, will likely use soil sampling longer. Regarding yield monitors, more experienced cotton farmers, those who believe that PF will be important in the future, those that have higher levels of educational attainment, and farmers whose income is not solely dependent on farming, will more likely utilize the technology longer.