Precision agriculture : a study of the profitability in a Swedish context

Abstract: A comparison within the European Union (EU), reveals that the Swedish agricultural sector is at a lower rate than other comparable countries regarding competitiveness. The low rate of competitiveness is an adverse development for Sweden, and according to a yearly report created by LRF Konsult the profitability of Swedish grain farming is low (SJV, 2014; www, LRF, 2017). One method to improve the profitability in the agricultural sector is to apply precision agriculture to the operation (Zarco-Tejada et al., 2014). The study aims to examine the profitability of applying precision agriculture in a Swedish context. More specifically the study examines how the economic result is affected on a case farm by applying precision agriculture to the crop operation. To examine the profitability of precision agriculture in a Swedish context a mathematical optimization model is developed. This study applies a quantitative method with a deductive approach. The empirical data used is collected from a case farm in Västergötland. Results from the study indicates that precision agriculture could be a profitable investment for the case farm in the study. The results differ from previous studies, compared to Lawes and Robertson (2011). This study shows a significantly higher profitability increase from implementing precision agriculture. Results display that the case farm would lose less yield under a nitrogen policy implication when using precision agriculture compared to conventional agricultural techniques.