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The Impact of Precision Agriculture Technologies on Farm Profitability in Kansas
1S. Dhoubhadel, 2T. W. Griffin
1. Assistant Professor, Department of Agriculture, Fort Hays State University, Hays, Kansas, USA
2. Assistant Professor, Department of Agricultural Economics, Kansas State University, Manhattan, Kansas, USA

Even with more than a decade long adoption of the precision agriculture (PA) technologies in the United States, its impact on farm profitability is still not clear. This paper uses farm level data from Kansas Farm Management Association (KFMA) to conduct the ex-post evaluation of PA technologies on farm profitability in Kansas. The analysis of the data using propensity score matching method indicates that there is on an average $60,000 difference in net returns of the farm with at least one PA technology and the net returns of the farm without any PA technology. The results also indicate approximately a linear increase in return with adoption of more PA technology. The conclusion from this paper is specific to the state of Kansas and with availability of national level data, analysis can be extended to draw a more generalized conclusion.

Keyword: precision agriculture, farm profitability, net returns, propensity score matching