Precision ag leading to better land values
An ag economist says wide acceptance of precision ag technology directly benefits land values.
President of Perfect Fit Presentations Dan Manternach analyzed 2019 precision ag usage farm data collected by the University of Minnesota from farmers in 12 states as part of the FINBIN program.
“Farmers are getting better at using it and what the data now shows from the FINBIN numbers is that the intensive users are on the leading edge of profitability.”
He says farmers who intensely used precision ag, including autosteer and variable rate applications for chemicals, fertilizer, and planting, have lower variable costs per acre and higher profitability because of higher yields.
“The higher profit per acre translates into a higher land value.”
He says that means farmers using precision ag can also afford to spend more on cash rents and new farmland.
“A $19 per acre advantage in return over variable costs for intensive use of precision ag-tech—that alone increases the value of the land by $556 per acre.”
And he says farm size didn’t make a significant difference in the added advantages of using precision agriculture.