PRECISION AGRICULTURE INITIATIVE

FOR TEXAS HIGH PLAINS

2001 ANNUAL COMPREHENSIVE REPORT

Texas Agricultural Experiment Station and Texas Cooperative Extension

Principal Investigator:

Lal K. Almas, Assistant Professor

                        Division of Agriculture

                        West Texas A&M University

                        WTAMU Box 60998

                        Canyon, TX 79016-0001

                        Phone (806) 651-2552                Fax (806) 651-2938

                   E-mail: lalmas@mail.wtamu.edu

Cooperators:

Stephen H. Amosson, Professor and Management Economist

                        Texas A&M University Agricultural Research and Extension center

                        6500 Amarillo Boulevard West

                        Amarillo, TX 79106

                        Phone (806) 359-5401                Fax (806) 358-9718

                        E-mail: s-amosson@tamu.edu

                        Thomas H. Marek, Research Engineer and Superintendent

                        Texas Agricultural Experiment Station

                      6500 Amarillo Boulevard West

                        Amarillo, TX 79106

                        Phone (806) 359-5401                Fax (806) 358-9718

                        E-mail: t-marek@tamu.edu

Primary Research Location: 

West Texas A&M University, Canyon

Texas A&M Agricultural Research and Extension Center, Amarillo

North Plains Research Field, Etter, Texas

Project Title:  

Economic Feasibility Assessment of Variable Rate Applications (VRA) for the Northern Texas High Plains

Project Objectives: 
             The overall objective of this project is to integrate economics analyses into the current and future precision farming projects earmarked for the Northern High Plains of Texas and generalize potential impacts of VRA to Texas as a whole wherever data permit.  The specific objectives are to:

1                    Identify and analyze the costs of VRA technologies in Texas High Plains

2                    Evaluate the breakeven field variability and estimate the breakeven yields to cover the technology cost by conducting expanded economic analysis of VRA

Reporting Period: January 1, 2001 - December 31, 2001

A.                 Summary of Progress:

Precision farming or site-specific farming uses site-specific information to apply inputs at spatially variable rates with the objective of maximizing profits.  Precision technology helps in matching input application to crop and soil needs.  Both over-application and under-application of inputs like seeds, water, fertilizers and pesticides are reduced.  Voluntary adoption of VRA is likely to be dependent on profitability.  Economic benefits of switching to VRA from uniform application methods depend on the feasibility assessment of the technology.

            A thorough site-specific assessment of the economic viability of precision agricultural technology must be conducted prior to producer adoption.  In the semi-arid region of the Texas High Plains, research has shown that no production input is more important than water.  The irrigation water is applied using center pivot in this region.  Feasibility of using variable rate irrigation technology on these center pivots is assessed using actual yield maps from producers within the region.  The impact of commodity prices on the economic feasibility of VRI technology has also been assessed (specific objective 1).  Results of these analyses indicate that many producers have enough yield variability to justify the investment in VRI technology.

            Economic analyses of crop production, regardless of the technology used, requires determining the responsiveness of crop yields to various inputs.  The crop yield responses for corn, sorghum, soybeans, and wheat are being estimated for different topsoil depths in the field at North Plains Research Field (NPRF), Etter, Texas with variable rate applications of seed, fertilizer, and water.  The information provided by the individual response functions will be used to optimize the use of input in crop production.  The profit maximization for any input will occur at the point where the additional returns equal the additional costs.  The producer will break even if the additional returns above the input costs are equal to the cost of VRA depending upon the spatial variability in the field (specific objective 2). 

B.            Education/technology transfer:

Attended and participated in sessions on precision farming and its economics and held discussion with professionals during Southern Agricultural Economics Association Annual Meetings at Fort Worth, Texas on January 30, 2001.  In depth discussion on the various economic aspects of precision agriculture indicated that the precision farming might be economically a viable option for producers if the adoption costs are low.  Precision farming may not only enhance net profitability but also these site-specific management approaches could contribute significantly in improving environment.              

C.                 Milestones achieved:

Yield maps and average distribution analyses were used to assess the economic feasibility of implementing VRI on center pivot systems in the Northern Texas High Plains.  Knowledge of yield increase and expected returns to offset investment in the VRI can help the producers in making appropriate economic decisions about the adoption of VRI.  The fundamental analysis for the economic cost of investing in precision agricultural technology and the benefits generated from yield increase has been conducted by applying a standard cost benefit analysis.  Given the average prices of the major crops (corn, sorghum, soybean, and wheat) grown in the area and field variability assumptions, breakeven additional yields were also estimated for three center pivots systems.

D.            Publications: (Provide complete references)

• Almas, Lal, T. Marek, S. Amosson, and E. Cox  “Economic Feasibility of Variable Rate Irrigation (VRI) Technology.”  Paper presented in Precision Agriculture meeting at Halfway, TX, April 11, 2001
• Marek, Thomas, Lal Almas, Erica Cox, and S. Amosson.  “Feasibility of Variable Rate Irrigation with Center Pivot Systems in the Northern Texas High Plains.”  ASAE Meeting Paper No.01-1117. St. Joseph, Michigan.

E.                  Precision Agriculture Proposals: (List all proposals related to PA and indicate amount of request and if they were funded)

• A proposal related to precision agriculture was submitted with the request for research funds of $20,000 per annum for two years.  The title of the project is “Economic Feasibility Assessment of Variable rate Applications for the Northern Texas High Plains.”   The research project was funded for $15,000 for 1^st year.  

F.            Precision Agriculture meetings attended/papers (posters) presented:

·        Attended and Participated in Precision Agriculture meeting at Halfway, Texas on January 18, 2001

·        Attended and participated in Selected Paper Sessions on Precision Farming of Southern Agricultural Economics Association Annual Meetings at Fort Worth, Texas on January 30, 2001.

·        Attended and participated in Precision Agriculture meeting at Halfway, Texas on April 11, 2001 and presented a paper entitled “Economic Feasibility of Variable Rate Irrigation (VRI) Technology”

G.                Other developments:

            The ongoing research project under precision agriculture will support a graduate student in the Division of Agriculture, West Texas A&M University.  The prospective student has been identified and his hiring as graduate student worker is in progress.  Principal investigator and graduate student will closely work together and continue to conduct economic analyses and estimate potential economic and environmental benefits of variable rate applications of input uses associated with precision farming in Northern Texas High Plains.