By Gregg Wartgow, Special to the Association of Equipment Manufacturers --
The benefits of using precision agriculture technologies to grow crops have been undeniable.
Now, thanks to a recently updated and comprehensive report from AEM and global consultancy firm Kearney, those benefits are also significantly easier for the average person to understand.
“The benefits of technology in general can often be more qualitative in nature,” said Doug Griffin, partner at Kearney, an AEM member company. “That’s why the AEM study takes a quantitative approach to analyzing the benefits of precision agriculture that people talk about on a daily basis. We wanted to make sure the benefits were measurable so people could better understand their impact.”
The Benefits of Precision Ag in the United States points to five key benefits of today’s most common precision ag technologies:
- 5% increase in crop farming productivity
- 8% reduction in fertilizer use
- 9% reduction in herbicide use
- 5% reduction in water use
- 7% reduction in fuel consumption
“This report puts everything into laymen’s terms,” Griffin said.
“AEM’s study provides us with something every policymaker asks for: hard numbers,” said Bill Hurley, vice president of government affairs at AEM member company AGCO. “When we walk into a lawmaker’s office, that kind of clarity changes the conversation from ‘why farmers should invest in these technologies’ to ‘what steps can we take to help them invest and accelerate their adoption?’”
As Hurley pointed out, cost is one of the biggest barriers to adoption, especially for smaller farming operations.
“This report helps us demonstrate where targeted incentives, tax tools, and financing programs can close that gap while delivering verifiable public benefits,” Hurley said. “It also strengthens the case for continued rural broadband expansion, since many of these technologies depend on connectivity.”
For more than 130 years, AEM has helped advance equipment manufacturing and the agriculture and construction customers our industry serves by providing uniquely valuable insights and timely, relevant resources. Learn more at aem.org/insights.
With that said, here are four measurable benefits of precision ag, according to AEM’s 2025 study:
1. Increased Productivity
Griffin views the benefit of increased productivity as the umbrella to everything else discussed in the study. After all, improvements in productivity create opportunities to reduce cost.
Three precision agriculture technologies in particular — auto guidance, variable rate, and machine section control — allow tractors and implements to operate more efficiently and accurately. That helps save time, reduce field passes, and preserve the vigor of the ground farmers are managing.
“From the farmer’s standpoint, improved productivity is about increasing yields and profitability,” Griffin said. “Every farmer wants to grow more crops on the same amount of land, or grow the same amount of crops in less time and with less inputs. That’s how farmers make more money.”
The AEM study points out that for every 1,000 acres of row crops, a farmer can generate an additional $66,000 in revenue per year simply by increasing productivity (yield) by 5%. Society benefits from that increased productivity, too.
“It’s no secret that the global population and demand for food are growing rapidly,” Griffin said. “The agriculture industry needs to figure out how to do more with less. Producing 5% more food for the world — whether that food is going to feed people, cattle, or pigs — has a huge societal benefit. And if farmers can grow more food without having to till more land, that’s even better.”
Land is a precious resource, particularly for societies that are growing and evolving. Precision agriculture technologies are helping secure a reliable food supply while preserving this vital resource for other societal needs including housing, solar farms, data centers, etc.
“If we wanted to grow the same amount of food today without using precision agriculture, we would need to find another 11.4 million acres of land somewhere,” Griffin pointed out. “That’s the equivalent of five Yellowstone National Parks. Finding that amount of land to grow more crops would be very difficult.”
2. Reduced Fertilizer and Herbicide Use
Precision agriculture technologies are helping crop farmers improve the efficacy of their fertilizer and herbicide treatments. Reduced overlap and more precise delivery lead to an estimated 8% reduction in fertilizer and 9% reduction in herbicide.
The big benefit for farmers is reduced cost. The AEM study illustrates how a row crop farmer can avoid as much as $20,000 in additional fertilizer expenses for every 1,000 acres they manage. Herbicide costs can be reduced by roughly $12,000.
Additionally, less fertilizer and herbicide being put into the soil results in improved soil health, reduced weed resistance, improved water quality, and a net greenhouse gas (GHG) reduction. That benefits not only the farmer, but also society as a whole.
“Society and farmers both benefit from land being well cared for. Precision agriculture is a win- win as farmers can produce more with fewer inputs, and society sees more food production.” Griffin said.
“Farmers are deeply tied to their land, and many of their farms are multi-generational family operations,” he continued. “Precision agriculture gives them another tool to care for the land and ensure it is passed on to the next generation in the best possible condition. With precision agriculture, their farms are more productive and require fewer inputs such as fertilizers and herbicides for the volume of crop produced. That’s not to imply that farmers don’t already manage their fertilizer and herbicide use effectively. They’ve done a great job for a long time. But you can’t argue that anytime you can produce more and use even less, it’s better. Precision ag is providing that opportunity.”
“AEM’s study provides us with something every policymaker asks for: hard numbers. “When we walk into a lawmaker’s office, that kind of clarity changes the conversation from ‘why farmers should invest in these technologies’ to ‘what steps can we take to help them invest and accelerate their adoption?’” -- Bill Hurley
Today’s precision ag technology on equipment can have an enormous positive impact on farmers and the environment, ultimately enhancing productivity through more efficient use of critical inputs, such as land, water, fuel, fertilizer, and herbicides. In short, farmers who use precision ag equipment use less to grow more. Download The Benefits of Precision Ag in the United States.
3. Reduced Fuel Consumption
Precision ag technologies are helping farmers reduce fuel use on a couple of fronts.
First, technologies like equipment telematics help farmers better manage and maintain their equipment. Second, technologies like auto guidance improve the efficiency of equipment while in operation.
The net result is an estimated 7% reduction in fuel use. For a 1,000-acre row crop farmer, that’s roughly $4,000 in cost savings over the course of a year. For society, it’s like removing 283,000 cars from the road annually due to the 147 million gallons of fuel consumption that was avoided.
4. Conserving Water
Several precision ag technologies help reduce the amount of water used to grow crops by an estimated 5%. Things like soil moisture sensors and more effective scheduling systems are helping ensure that the right amount of water gets to the right places at the right times. That reduces water usage without compromising a crop’s ability to thrive.
For the row crop farmer, the big benefit of reduced water use is reduced cost. The AEM study illustrates how precision irrigation technologies can help a 1,000-acre farmer avoid roughly $16,000 in additional expenses through water-use efficiency.
Farmers also benefit from precision irrigation’s impact on soil health. Current technologies are helping prevent waterlogging and dry-soil crusting, minimize leaching, manage salinity, and protect soil structure against flood events.
As impactful as all these benefits are to the farmer, the even bigger story could be the benefit to society.
“There’s only a finite amount of water resources in the world,” Griffin said. “Precision irrigation technologies are helping improve the efficiency of water used in agriculture by producing more food with the same amount or often times even less water, and that’s a good thing for society.”
“Society and farmers both benefit from land being well cared for. Precision agriculture is a win- win as farmers can produce more with fewer inputs, and society sees more food production.” -- Doug Griffin
How Can Precision Ag Achieve its Full Potential?
The estimated benefits of precision ag outlined in the AEM study are based on current adoption levels of current technologies. With more widespread adoption, the benefits could be even greater.
Water use is the area with the most potential for additional improvements. Another 20% reduction is possible. According to Griffin, that’s because precision irrigation systems have only begun scratching the surface in terms of technological capability and farmer adoption.
At the other end of the spectrum, the potential for additional fuel use reductions is on par with what has already been achieved (7%). That’s because the primary technological drivers, auto guidance and fleet telematics, have already attained relatively high adoption. That said, an additional 7% reduction would have a huge benefit for both farmers and society.
Potential productivity gains are also on par with what has already been achieved (6% on top of 5% already achieved). Much like with fuel consumption, auto guidance is a big driver here. Other technologies like variable rate and machine section control have much more room for growth.
Fertilizer and herbicide use could see more significant improvements of 14% and 12%, respectively, on top of the 8% and 9% that have already been achieved. Auto guidance, variable rate, and machine section control play a crucial role here, too. So does a newer technology known as targeted spray application. Griffin said this technology is creating huge opportunity with respect to future reductions in herbicide use.
If one thing is clear, it’s that crop farmers will save over time by leveraging today’s precision agriculture technologies. They’ll also produce more crops. The AEM study makes that abundantly clear in quantified fashion.
“Precision ag isn’t theoretical, it’s profitable,” AGCO’s Hurley said.
For more information about the study, contact AEM’s Austin Gellings at agellings@aem.org, or AEM’s Curt Blades at cblades@aem.org.
