Lot No. LOT-4451 · offered September 29, 2026
Precision Agriculture & AgTechLot sheet
Precision Ag Adds $118,000 Per 1,000 Acres, AEM Study Finds
AEM's new study pegs precision ag returns at roughly $118,000 on 1,000 acres, with 5% higher production and cuts of 8% in fertilizer, 9% in herbicide and 7% in fuel.
Market notes
- AEM's study finds precision ag lifts crop production 5% while cutting fertilizer use 8%, herbicide use 9%, water use 5% and fuel use 7%.
- A row crop farmer managing 1,000 acres could add roughly $118,000 to the bottom line with precision agriculture, according to AEM.
- Targeted spray technology, using cameras and machine learning, cuts herbicide use by 50-90% in various studies and now works in green-on-green crop canopies.

A row crop farmer managing 1,000 acres can add roughly $118,000 to the bottom line with precision agriculture, according to a newly released study by the Association of Equipment Manufacturers, "The Benefits of Precision Ag in the United States." The same study quantifies across adopters a 5% increase in crop production, an 8% reduction in fertilizer use, a 9% cut in herbicide use, and 5% and 7% reductions in water and fuel use, respectively.
Those numbers land at a moment when input economics are squeezing margins. "Input costs for things like fertilizer and pesticides have continued to rise, and unfortunately the price of commodities have not," said Adam Barlow, manager of technology standards and regulatory affairs for precision agriculture technologies at AEM member company John Deere. "When you look at the price of corn today, it's about where it was in the 1980s."
The squeeze leaves two paths, according to Mike Mills, director of sustainability solutions at AEM member company Reinke Manufacturing, an irrigation systems maker. "There are two ways to make money on a farm," Mills said. "You can sell your product for more or spend less producing it."
Efficiency, not just reduction, is the point, said Austin Gellings, senior director of agricultural services at AEM. "It's not always about a reduction in inputs. It's more about applying inputs as efficiently as possible. Crop output per pound of fertilizer used has increased significantly over the years. That's a tangible benefit that makes farmers more profitable."
Targeted spray cuts herbicide use 50-90%
AEM details several technologies driving the gains. Auto guidance uses GPS to steer tractors through seeding, spraying, spreading and harvesting. Machine section control switches planter, spreader and sprayer sections on and off so inputs land only where needed. Variable rate application uses sensors or preprogrammed maps to set rates by field section.
Targeted spray application is the newest lever. Cameras and machine learning turn nozzles on only when sensors detect weeds, and various studies put herbicide savings at 50-90%. Early systems handled only green-on-brown detection — weeds in fallow ground. Barlow said the technology now handles green-on-green detection inside crop canopies.
Crop coverage has widened too. Early versions suited corn, cotton and soybeans, typically planted in 30-inch rows. "As the algorithm has continued to advance, we're now able to get into the narrower row spaces like you have with these other crops," Barlow said, pointing to wheat, barley, canola, sugar beets and peanuts.
Reduced blanket spraying also protects yield. "When blanket spraying pesticide over an entire crop, the grower will sometimes wind up with some crop damage — especially in soybeans where the leaves can start to curl up," Barlow said. "The leaves will grow back out in most instances if the proper pesticide rate was applied. But some of that crop's growth has been stunted, which could affect yield. When target applying, on the other hand, the grower isn't putting that stress on the plant that doesn't need to be sprayed."
Irrigation technology trims pumping costs
Mills identified three irrigation technologies changing water management. Telemetry lets growers monitor and control equipment from any internet-connected device. "Today's technology is like having an irrigation controller in your back pocket," he said. For large operations, remote management is the only practical option — a grower managing thousands of acres across several states cannot drive to each field daily.
IoT integration is the second area. Soil moisture sensors and weather devices feed a single data management platform, replacing educated guesses with root-zone readings. "Most platforms will then tell the farmer that in order to reach field capacity, X amount of water needs to be applied," Mills said. Tie in weather forecasts and evapotranspiration data, and the irrigation decision becomes substantially better informed.
Variable rate irrigation is the third. Sector VRI adjusts machine speed around a field; Zone VRI groups sprinklers that switch on and off individually, similar to machine section control. With GPS position monitoring, sprinklers can shut off over a protected wetland while irrigating the rest of the field.
Lower water use also cuts pumping costs directly, since pumps run on fuel or electricity. The larger gain, Mills said, is applying water accurately enough to expand acreage or raise yield per acre on the same water flow. "Sustainability is about sustaining ourselves as a population, which means we're able to produce the food and fiber the world needs," he said. "That requires the responsible use of natural resources like water, and that's what growers are doing with precision ag."
The AEM study also catalogs agronomic ripple effects: reduced field compaction, prevention of waterlogging and dry-crusting, stronger root growth, increased microbial activity, improved soil salinity and slower development of pesticide resistance.
AEM, which has represented equipment manufacturers for more than 130 years, frames the study's top-line conclusion simply: farmers using precision ag equipment use less to grow more. As input prices stay elevated and commodity prices stagnate, the association's data positions precise application — not acreage expansion — as the margin lever row crop operators can still pull.
via aem.org (Original)
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