Evaluating the profitability of site-specific farming

Site-specific farming (SSF) practices are being adopted at an accelerating rate, but evidence of their profitability has been mixed or missing. This c ontribution evaluates the profitability of SSF practices by synthesizing qu antitative and qualitative research results within the context of the econo mics of information technology. The profitability results from nine publish ed field research studies on variable rate (VR) fertilizer application are reviewed using partial budgets adjusted to include minimum costs and grid c ell areas for each study. Profitability results correlated closely with the gross revenue earning potential of the crop, so VR fertilizer application was unprofitable on wheat (Triticum aestivum L.) and barley (Hordeum vulgar e L.), sometimes profitable on corn (Zea mays L.), and profitable on sugarb eet (Beta vulgaris subsp. L. vulgaris). Although the formal published liter ature has ignored the profitability of yield mapping, production economics and farmer interviews suggest that yield mapping is profitable when it reve als yield patterns that can be managed at acceptable cost and when the info rmation has compensating off-field value. Manageable yield variability incl udes not only VIR input management, but also whole-field improvements such as field drainage, land leveling, windbreaks, and fencing. Off-field value can come from cheaper on-farm experimentation and greater negotiating power with landlords. Farmers and agribusinesses committed to field crop product ion for the long term should develop SSF capabilities. But because SSF prac tices are site-specific, their profitability potential too is site-specific . This site specificity extends beyond the farm field to the crop rotation, and the capabilities and opportunities available to the farm or agribusine ss manager.