Economic aspects of chemical reduction in farming – future role of precision farming

Abstract The reduction of chemical use and environmental load in agriculture is increasingly desired. Developed countries promote lower use of pesticides and farmers have to change cultural practices accordingly. The implementation of precision farming promotes rational application of chemicals but requires capital investment. This paper reviews methods used to model and measure the reduction of pesticide use and examines investment returns of precision farming technology at the farm level. The results show that turning to precision pest control does not result in a yield increase, but raises the cultivation costs. By increasing the share of corn, sunflower, and rape in crop mix the investment in precision farming is paid off after six years under Hungarian conditions. The result suggests that a farmer must adopt a long-term perspective when adopting this technology.