Using precision agriculture technology for economically optimal strategic decisions: The case of CRP filter strip enrollment

While the application of precision agriculture technology to tactical, or within cropping season, decisions such as variable rate nutrient application may be an initial focus for producers, other decisions can be considered. Precision agriculture, as an information system, can provide data to help make spatially dependent strategic, or multiple cropping season, decisions. This research evaluates the economic benefit of filter strips on a diversified crop farm including corn and double cropped wheat with soybean. Economic analysis includes break-even computations permitting development of a decision-making criteria for the selection of these strips using historical yield monitor data. Results suggest that there is potential for this geographic information assisted process of filter strip delineation to increase overall net returns for producers with economically superior results to either a more naive approach of enrolling all eligible land in the Conservation Reserve Program (CRP) or not participating in CRP. Furthermore, results suggest that information from precision agriculture, when coupled with appropriate economic analytical tools, can increase enrollment in CRP and enhance sustainability through increased profits and the environmental benefits from engaging in the CRP.