Producer willingness to pay for precision application technology: Implications for government and the technology industry

Darren Hudson, Diane Hite

Research output: Contribution to journalArticle

22 Scopus citations

Abstract

This paper focuses on the willingness to pay (WTP) for precision application/site-specific management technologies on the part of agricultural producers. We use a contingent valuation survey to elicit WTP for a package of technologies and examine the impact of government subsidies on potential demand. Results suggest that producer WTP is significantly lower than current technology prices, necessitating a 60% government subsidy to induce adoption, on average. Agronomic factors such as soil characteristic variability and soil quality are important determinants of WTP. In addition, how well the technology integrates into current farming practices and equipment also appears important.

Original languageEnglish
Pages (from-to)39-53
Number of pages15
JournalCanadian Journal of Agricultural Economics
Volume51
Issue number1
DOIs
StatePublished - Mar 2003

Fingerprint Dive into the research topics of 'Producer willingness to pay for precision application technology: Implications for government and the technology industry'. Together they form a unique fingerprint.

  • Cite this