Farm Efficiency and Precision Agriculture Technology

Abstract

Precision agriculture technology (PAT) is often viewed as a potential driver of future efficiency gains in farming. Using within-farm variation from an unbalanced panel of Kansas farms, this study examines the impact of PAT bundles on efficiency in generating gross revenue. On average, we find little evidence that these technologies improve efficiency. However, among less efficient farms, several bundles are linked to notable efficiency gains, underscoring the importance of accounting for farm heterogeneity.