BENTON HARBOR, Mich. — How do growers think about ROI when it comes to ag tech? That’s the question that Tor Tolhurst, assistant professor in the department of agricultural, food and resource economics and his Ph.D. student, Aaron Toth, set to research during the Great Lakes Tek Flex.
Toth and Tolhurst presented the preliminary findings of their research at the event.
Tolhurst says the majority of growers attending the event grow tree fruit with larger acres planted whereas the vegetable growers in attendance had various sizes of acres in production.
He says most growers in attendance also own their land, “so that means that probably we have a good amount of capital to invest in new technology.”
Tolhurst says growers also indicated expecting to increase acres planted or remain the same.
When looking at growers’ perception of return on investment, Toth says most growers reported not planning to retire for the next 20 years or more, which means those growers would be the most likely to use and integrate the technology into their operations.
While those growers who attended the Great Lakes Tek Flex are likely the most engaged in technology, most reported adopting some form of technology or are will most likely do so in the future.
Growers reported spraying or pest control, mechanical weeding and crop scouting and monitoring as the technology for them to add to their operations.
High Equipment Costs Delay Farm Automation
Tolhurst says when asked how growers feel about whether precision or autonomous equipment will pay for itself financially, most agree or strongly agree, while a small share reported believing that the technology will not pay for itself.
“It means maybe there are some other deeper factors related to risk that are underlying people’s concerns with adopting the technology,” Tolhurst says.
Growers reported using a mixture of cash and debt to pay for any investments in technology. But, he says, a large portion of growers also reported being unable to afford the technology.
“They weren’t thinking about how to purchase it, or they hadn’t thought about how they would pay for it if they bought it, meaning they’re relatively early in the cycle of thinking about adopting these technologies,” he says.
Labor shortages, Tolhurst says, were the top driver for growers looking to add technology, followed by input cost savings and waste reduction. He says growers look to machines that can perform more effectively than what they have on hand already.
“Farmers are interested in saving time, saving on labor costs, and so they’re looking for technologies that can do that for them,” he says. “They’re thinking, ‘How much money am I going to save not spraying so much every year? How can I bring the cost down to make it worth it to invest in this larger technology?’”
Farmers Favor Peer Advice Over Dealer Claims
Tolhurst and Toth also asked growers to rank their trust in information sources about ag tech. Growers listed fellow growers as the most trustworthy source, followed by Extension and online resources. Growers ranked equipment dealers as the least trustworthy.
“What this tells us is independent information is something that’s very valuable in making these adoption decisions,” Tolhurst says.
