ERA-NET ICT-Agri2 - Precision agriculture– Methodology for Cost Benefit Analysis – PAMCoBA

Variable rate application (VRA) and Controlled traffic systems (CTF) have a wide-ranging potential such as improving the utilization of crop nutrients, improvement of crop quality, reduced overlaps and better production economy. VRA focuses on the site-specific application of fertilizers, pesticides and water whereas CTF can allow farmers to reduce input costs (time, inputs and fuel) and increase crop yields. Although both concepts have the potential to improve the profit on many farms the adoption of PA technologies remains still low in Europe. The reason could lie in a reduced perception of the benefits of certain PA technologies along with relative high investment costs. Therefore, a comprehensive methodology approach that facilitates the understanding of initial investments, cost, and benefits can offer the chance to significantly improve the level of adoption of the most suitable PA technologies. The aim of this project was to design and test a comprehensive methodology to support cost benefit analysis related to PA. The methodology embraced 3 sets of evaluation related to (1) the financial performance and risk (2) strategic impact, (3) effects on fields operations, (4) Environmental impact and other social benefits. The four sets were combined in a single Key Performance Index.

Coordinator: Institute of Food and Resource Economics – University of Copenhagen (Prof. Soren Marcus Pedersen Principal investigator) - Denmark

Partners:

  • University of Bologna - Department of Management (Prof. Maria Rita Tagliaventi) and
  • Department of Agro-Food Science and Technologies (Prof. Maurizio Canavari) - Italy
  • Agroscope (Doctor Martin Holpp, Scientist) - Switzerland
  • Agricultural University of Athens (Prof. Spyros Fountas) – Greece
  • The Open University Business School - Department of Strategy and Marketing (Dr. Giacomo Carli) - United Kingdom

Duration: 3 years – from  1/01/2016 to 31/12/2018