RISK MANAGEMENT POTENTIAL OF PRECISION FARMING TECHNOLOGIES

Initial ideas on risk management uses of precision agricultural technology focused on site-specific treatment of problem areas to reduce the probability of low yields and returns. Recent discussions deal with sensor and remote-sensing information to improve marketing and "as applied maps" as trace-back mechanisms to manage liability. A theoretical model is presented that suggests that there are plausible circumstances under which precision farming can reduce temporal yield variability. Empirical evidence from an on-farm trial of site-specific P&K management in the Eastern Cornbelt supports the hypothesis that precision farming can have risk-reducing benefits.food safety, GIS, GPS, crop insurance, marketing, precision farming, site specific management, risk, Research and Development/Tech Change/Emerging Technologies, Risk and Uncertainty,