Case Study

Adopting Precision Input Management: A Teaching Case Study

Cheryl Wachenheim(a), Erik Hanson(a)
(a)North Dakota State University

JEL Codes: JEL Codes: D14, Q12
Keywords: Case study, exercise, partial budgeting, precision agriculture

Publish Date: January 20, 2024

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Abstract

Students are introduced to a framework for individual-farmer evaluation of the net benefits of adopting precision agricultural technologies (PATs). A young farmer is considering whether to use a PAT bundle. He is advised by a crop consultant. Students adopting the role of the farmer should analyze the basic economics associated with using the PAT. The focus is on identifying what differs from traditional application and that under PAT, finding information necessary to analyze the net effect, conducting sensitivity analysis, and factoring in qualitative considerations. Students should use partial budgeting analysis to calculate net change in profits expected from adopting a single PAT bundle.

About the Authors: Cheryl Wachenheim is a Professor of Agribusiness and Applied Economics at North Dakota State University (Email: cheryl.wachenheim@ndsu.edu). Erik Hanson is an Assistant Professor of Agribusiness and Applied Economics with North Dakota State University. CRediT author statement: Cheryl Wachenheim: Conceptualization, methodology, formal analysis, investigation, data curation, writing-original draft, writing-editing and review, visualization, supervision, project administration, funding acquisition. Erik Hanson: Conceptualization, methodology, formal analysis, investigation, data curation, writing-editing and review, and testing.