The use of precision technology has tremendous benefits to improving crop insurance reporting and lowering premium, but a new study shows it also can have other positive outcomes including better economic returns for growers and reduced impact on the growers’ land, according to the Association of Equipment Manufactures.
Precision Risk Management specializes in helping growers setup their precision technology for crop insurance reporting purposes. The implementation of this technology has shown a reduction of premiums up to 7%. This is caused by only covering the planted acres as opposed to the whole area designated by FSA. PRM’s Data Specialist go on-farm to assist the grower in setting up the technology and provides support whenever needed.
This precision technology setup process by PRM is only for crop insurance reporting per RMA regulation. But, that basic setup for accurate data collection allows growers to take advantage of other precision applications.
The study found the use of the precision technology has already greatly reduced the input costs for farmers. There is also evidence the further adoption of the technology will have even larger input savings in the future. The study highlighted some of the largest savings:
- Productivity has increased an estimated 4% and has the potential to further increase 6% with broader adoption.
- Precision agriculture has improved fertilizer placement efficiency by an estimated 7% and has the potential to further improve an additional 14%.
- Herbicide use has been reduced by an estimated 9% and has the potential to further decrease 15% at full adoption.
- Fossil fuel use has decreased an estimated 6% with the potential to further decrease 16%.
- Water use has decreased an estimated 4% because of current precision agriculture adoption with the potential to further decrease 21% at full adoption.
The more accurate use of inputs created environmental benefits to the grower’s land, the study found. Reduced use of fertilizer and herbicide created an indirect outcome of improved water quality and soil health. The study also found precision technology adoption in agriculture has contributed significantly to the increased in yields for major crops grown in North America.
The full AEM study can be read here.