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Agricultural Technology Utilization Across Generations Terry W. Griffin, Elizabeth A. Yeager, and Eric Ofori Department of Agricultural Economics Kansas State University @SpacePlowboy Women Managing the Farm Conference Manhattan, KS February 13-14, 2020
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Agricultural Technology Utilization Across Generations

Mar 27, 2022

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Page 1: Agricultural Technology Utilization Across Generations

Agricultural Technology Utilization Across Generations

Terry W. Griffin, Elizabeth A. Yeager, and Eric Ofori

Department of Agricultural Economics

Kansas State University

@SpacePlowboy

Women Managing the Farm Conference

Manhattan, KS

February 13-14, 2020

Page 2: Agricultural Technology Utilization Across Generations

What were we motivated by?

• Interest in

– who is adopting technology and how quickly

– why is technology being adopted

– what can technology provide

– who will be using ag tech in the future

Page 3: Agricultural Technology Utilization Across Generations
Page 4: Agricultural Technology Utilization Across Generations

• Kansas Farm Management Association (KFMA)

– Agronomic production & financial data, 1973 - present

– >2,000 farmer-members, ~1,000 suitable for economic analysis

• KFMA precision agriculture project initiated 2015

– past & current adoption/abandonment

– information-intensive & embodied-knowledge technologies

• 656 respondents regarding technology adoption

Page 5: Agricultural Technology Utilization Across Generations
Page 6: Agricultural Technology Utilization Across Generations

“Anything that is in the world when you're born isnormal and ordinary and is just a natural part ofthe way the world works. Anything that's inventedbetween when you're fifteen and thirty-five is newand exciting and revolutionary and you canprobably get a career in it. Anything invented afteryou're thirty-five is against the natural order ofthings.”

Douglas Adams in The Salmon of Doubt: Hitchhiking the Galaxy One Last Time

Page 7: Agricultural Technology Utilization Across Generations

n = 656

Page 8: Agricultural Technology Utilization Across Generations

The basic question: B > C?

Where does FOMO go?

Page 9: Agricultural Technology Utilization Across Generations

Number of technologies used on the farm

Page 10: Agricultural Technology Utilization Across Generations

Net farm income by generation

Page 11: Agricultural Technology Utilization Across Generations

Farm size by generation and structure

0

500

1000

1500

2000

2500

3000

3500

4000

Baby Boomer Generation X Millennial Silent

Farm

siz

e (a

cres

)

Multiple operators Single operator

Page 12: Agricultural Technology Utilization Across Generations
Page 13: Agricultural Technology Utilization Across Generations
Page 14: Agricultural Technology Utilization Across Generations
Page 15: Agricultural Technology Utilization Across Generations

Innovation status

Page 16: Agricultural Technology Utilization Across Generations

0

5

10

15

20

25

30

Yield mapping Yield monitor Automatedguidance

Automatedsectioncontrol

Lightbar Grid soilsampling

Variable ratefertility

Variable rateseeding

Perc

ent

Silent Baby Boomer Generation X Millennial

Distribution of Ag Tech: Sole proprietor farms

Page 17: Agricultural Technology Utilization Across Generations

0

10

20

30

40

50

60

70

Silent Baby Boomer Generation X Millennial

Perc

ent

Yield mapping Yield monitor Automated guidance

Automated section control Lightbar Grid soil sampling

Variable rate fertility Variable rate seeding

Distribution of Ag Tech: Sole proprietor farms

Page 18: Agricultural Technology Utilization Across Generations

0

10

20

30

40

50

60

70

Silent Baby Boomer Generation X Millennial

Perc

ent

Yield mapping Yield monitor Automated guidance

Automated section control Lightbar Grid soil sampling

Variable rate fertility Variable rate seeding

Distribution of Ag Tech: Multiple-operator farms

Page 19: Agricultural Technology Utilization Across Generations

0

10

20

30

40

50

60

70

Silent Baby Boomer Generation X Millennial

Perc

ent

Yield mapping Yield monitor Automated guidance

Automated section control Lightbar Grid soil sampling

Variable rate fertility Variable rate seeding

Sole proprietor farms

Page 20: Agricultural Technology Utilization Across Generations

0

10

20

30

40

50

60

70

Silent Baby Boomer Generation X Millennial

Perc

ent

Yield mapping Yield monitor Automated guidance

Automated section control Lightbar Grid soil sampling

Variable rate fertility Variable rate seeding

Multiple-operator farms

Page 21: Agricultural Technology Utilization Across Generations

Incentivizing Kansas farmers to adopt VR

• Code 104 Nutrient Plan Written

– By a Technical Service Provider

• 590 Nutrient Management Basic Precision

– $31.42 per acre capped at $30k per contract

• Costs relatively lower and assumed to be:

– $20 per soil sample ($8 per acre for 2.5 acre grid)

– VR upcharge $1.50 (dry) and $3 (liquid) above uniform

check with your local NRCS office for eligibility requirements (not everyone may qualify)

Page 22: Agricultural Technology Utilization Across Generations

Why farmers NOT adopting VR N?

• Benefits may not clearly outweigh costs

• Increased uncertainty of correct rates

– Farmer’s risk preference

• Lack of human capital capacity

– On-farm or 3rd party service providers

Page 23: Agricultural Technology Utilization Across Generations

Summing up returns to precision ag

• Evaluate if benefits outweigh the costs

– Remember: farmers should not be in a hurry

– FOMO not part of benefit-cost decision

• Ag tech isn’t for every grower on every field

– Where, when, what, and who!

• Sometimes waiting is optimal decision

– Until benefit:cost ratio favorably indicates

Page 24: Agricultural Technology Utilization Across Generations

Future Work

• Is precision technology profitable?

– Do farmers with money buy technology?

• Ag tech across generations

– Do Millennials influence Baby Boomers?

Page 25: Agricultural Technology Utilization Across Generations

“Precision Agriculture is a managementstrategy that gathers, processes and analyzestemporal, spatial and individual data andcombines it with other information to supportmanagement decisions according to estimatedvariability for improved resource useefficiency, productivity, quality, profitabilityand sustainability of agricultural production.”

https://ispag.org/

Defining Precision Agriculture

Page 26: Agricultural Technology Utilization Across Generations

https://ispag.org/

Page 27: Agricultural Technology Utilization Across Generations

Terry Griffin, PhD

Associate Professor and Cropping Systems Economist

Department of Agricultural Economics

Treasurer, International Society of Precision Agriculture

[email protected]

@SpacePlowboy

Elizabeth Yeager, PhD

Associate Professor and Director of Undergraduate Programs

Department of Agricultural Economics

[email protected]

Eric Ofori

Graduate Research Assistant, Department of Agricultural Economics

[email protected]