Producer Willingness to Pay for Precision Application Technology: Implications for Government and the Technology Industry |
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| Authors: | Darren Hudson Diane Hite |
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| Institution: | Associate professor, Department of Agricultural Economics, Mississippi State University, Box 5187, Starkville, Mississippi 39762. (Tel.: 662-325-7998;Fax: 662-325-6614;e-mail: ).;Assistant professor, Department of Agricultural Economics, Auburn University, Auburn, Alabama. |
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| Abstract: | This paper focuses on the willingness to pay (WTP) for precision application/site-specific management technologies on the part of agricultural producers. We use a contingent valuation survey to elicit WTP for a package of technologies and examine the impact of government subsidies on potential demand. Results suggest that producer WTP is significantly lower than current technology prices, necessitating a 60% government subsidy to induce adoption, on average. Agronomic factors such as soil characteristic variability and soil quality are important determinants of WTP. In addition, how well the technology integrates into current farming practices and equipment also appears important. |
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