Socioeconomic impact of widespread adoption of precision farming and controlled traffic systems in Denmark

Abstract

In this study we assess the economic profitability of implementing various precision farming (PF) technologies and controlled traffic farming (CTF) on 4 main crops in Denmark. The study provides insight into technological requirements, and identifies related costs and benefits to farmers and the Danish society as a whole. At the farm level, the findings from the study indicate that an implementation of CTF systems may have a significant impact on fuel savings due to a reduced overlap with auto guidance systems and easier movement with tractors and tools in the field. The PF site-specific weed management approach may facilitate large savings in the use of herbicides. At the national level, the results clearly show that the benefits to the Danish economy of adopting this new technology is positive with increased income to farmers and a reduction in fuel consumption and pesticides/herbicides use. The obtained results reflect the long term economic effect of implementing new production methods in Denmark where soil fertility increases over time due to reduced traffic increasing yields. Over all, the Danish GDP is estimated to increase by 34 million € due to the implementation of PF and CTF on larger farms in Denmark. The results also clearly show that adoption of PF and CTF farming systems will benefit the environment. The agricultural sectors input of environmental harmful inputs are reduced in all scenarios presented in this paper. The adoption of PF and CTF systems should thus be of interest to politicians since it clearly facilitates aims of environmental policies currently under implementation by the Danish government.