Financial Feasibility of Precision Farming in Paddy - A Case Study

Shruthi  K., G. M. Hiremath*, Amrutha T. Joshi

Department of Agricultural Economics, College of Agriculture, UAS Raichur, India.

Corresponding author Email: gmhiremath41@gmail.com

DOI : http://dx.doi.org/10.12944/CARJ.5.3.09

Abstract:

Precision farming is an emerging, highly promising technology that helps in dealing with the present agricultural challenges by proper and effective management of soil and crop variability with the use of information technology. In order to initiate precision farming in India through state agricultural universities, the precision farming project in selected field crops was implemented in University of Agricultural Sciences, Raichur, Karnataka. The objective of the study was to assess the financial feasibility of project implementation at farm level in paddy. Primary data was collected with the aid of a well-structured, pre tested schedule. Findings showed that the project of precision farming in paddy which was implemented by the University was economically viable and financially feasible. The cost incurred in cultivation of paddy by adopting precision farming practices was ` 75,825.35/ha and gross returns were ` 1,22,656.30/ha. Results of financial feasibility measures showed that the Net Present Value at 12 per cent discount rate, at the end of ten years was found to be positive, Benefit-Cost ratio was more than one and Internal Rate of Returns of the precision farming in paddy was more than discount rate (12 %). It was also revealed that payback period was 6.84 months and profitability index due to adoption of precision farming was found to be 8.83. Hence it was concluded that investment on precision farming in paddy at farm level was feasible to operate at farm level with the technical assistance from University. Considering the adoption strategy of precision farming and its benefits, there is a need to bring awareness among farming community by the joint effort of public and private sectors through the extension agencies, non-governmental organizations and state agricultural universities

Keywords:

Benefit-Cost Ratio; Economic Feasibility; Financial Feasibility; Internal Rate of Returns; Net Present Value; Pecision Farming; Profitability Index; Variability

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