The Economic Results of Investing in Precision Agriculture in Durum Wheat Production: A Case Study in Central Italy

Abstract

Today, precision agriculture technologies (PATs) can be considered a tool for the management of the farm which allows the agricultural entrepreneur to optimise inputs, reduce costs, and offer the best quantitative and qualitative agricultural products. In Italy, the number of digital farmers is still low; therefore, it is not yet possible to assess with certainty the actual economic benefits that technologies bring to the farm. To bridge this gap, the paper proposes, through the analysis of a case study, an assessment of the economic efficiency of an Italian cereal farm that has invested in precision agriculture. The results reveal that, unlike what is reported in the literature, after the technological adoption, the farm keeps both the yield and variable costs stable. However, the major benefit is recorded in the decrease in labour costs (−20%) and in the reduction of pesticides (−53%). The increase in the quantity of nitrogen (+11%) and of seed distributed in the field (+5%) indicates that, in the face of a significant increase in total costs due to the capital invested in technology, the farm aims to intensify production rather than reduce agricultural inputs.

Keywords

• case study
• durum wheat
• economic profitability
• precision agriculture
• sustainability