Precision Farming is also worthwhile for smaller farms | 12.02.2010
Precision Farming also makes economic sense for smaller areas, even with the current market prices. Model calculations show that already with unfavourable product price levels of 8 €/dt for cereals the costs for a 300 ha farmed area are more than covered. The “break even” point lies in this case at 135 ha.
In the model calculation of profitability a 300 ha, 1000 ha and 2000 ha farm are compared with one another. It is assumed that they all utilise sub-area specific maintenance and nitrogen fertilisation as well as variable use of growth regulator.
1. Investment costs
The following results come from the addition of all costs which arise for the investment in precision farming for the farms:
- 300 ha farm: 33.71 €/ha year
- 1000 ha farm: 18.24 €/ha year
- 2000 ha farm : 16.98 €/ha year
The 300 ha farm takes first place regarding the costs, as expected. With the 1000 ha and 2000 ha farm, the degression of size sets in.
2. Economic effects
The costs for precision farming can only be evaluated realistically when the effects of the sub-area specific crop farming are observed in parallel. In this case a yield level of 80 dt/ha is assumed with uniform cultivation. The effects of sub-area specific cultivation were only minimally applied here. However, it showed that even with an unfavourable product price level of 8 €/dt for cereal, the profit lies at 63.7 €/ha. If this is compared with the costs for precision farming, then the 300 ha farm also already makes a profit.
If the product price rises, the monetary effects of precision farming have a direct influence. In this context the problem of quality in winter wheat for the harvest in 2009 is referred to: in this difficult year there was a product difference of up to 5 €/dt (feed wheat: 10 €/dt, quality wheat: 15 €/dt). The economic advantages of the sub-area specific fertilisation, which ensures good quality, are obvious.
This contribution is an excerpt from the scientific paper „What is possible- an economic observation of precision farming".