Article
Version 1
This version is not peer-reviewed
The Role of Precision Agriculture Technologies in Enhancing Sustainable Agriculture
Version 1
: Received: 4 July 2024 / Approved: 4 July 2024 / Online: 4 July 2024 (13:31:13 CEST)
How to cite: Sanyaolu, M.; Sadowski, A. The Role of Precision Agriculture Technologies in Enhancing Sustainable Agriculture. Preprints 2024, 2024070428. https://doi.org/10.20944/preprints202407.0428.v1 Sanyaolu, M.; Sadowski, A. The Role of Precision Agriculture Technologies in Enhancing Sustainable Agriculture. Preprints 2024, 2024070428. https://doi.org/10.20944/preprints202407.0428.v1
Abstract
Despite the known benefits of precision agriculture, the adoption is challenging due to the cost of investment and the farm sizes. Therefore, profitability is an important aspect to consider. This study aimed to evaluate the net returns, profitability, and investment efficiencies of PA by different economic farm sizes. The study was based on data retrieved from FADN and Eurostat. The study examined four countries (Poland, Germany, France, and Romania) under field crop farming using an investment cost of €35 941 - €71 883, and a 20% and 15% reduction in the cost of crop protection and fertilizer usage respectively without compromising productivity. There is a positive relationship between the adoption of PA and farm returns for larger-scale farms. The result of the profitability and analysis of investment efficiency using NPV showed a positive value for economic farm sizes of €100 000 and above. Hence, it is not economically advisable that all farmers use PA technologies with the hope that they will be profitable but with public support (subsidies) more farms will be able to use PA and be profitable. Also, an opportunity to meet the goal of the European Union Green Deal of minimizing emissions that cause climate change.
Keywords
Precision agriculture; sustainability; net present value; profitability of precision agriculture; farm returns; cash flow; public support for precision agriculture
Subject
Business, Economics and Management, Economics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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