TY - JOUR
T1 - Producer willingness to pay for precision application technology
T2 - Implications for government and the technology industry
AU - Hudson, Darren
AU - Hite, Diane
PY - 2003/3
Y1 - 2003/3
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=0037591077&partnerID=8YFLogxK
U2 - 10.1111/j.1744-7976.2003.tb00163.x
DO - 10.1111/j.1744-7976.2003.tb00163.x
M3 - Article
AN - SCOPUS:0037591077
SN - 0008-3976
VL - 51
SP - 39
EP - 53
JO - Canadian Journal of Agricultural Economics
JF - Canadian Journal of Agricultural Economics
IS - 1
ER -