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Agriculture & Commodity Markets

Precision Agriculture and Farm Technology

How sensors, satellites, drones and data help farmers use inputs more efficiently, and the barriers to adoption for small farmers.

Precision agriculture uses technology to give each part of a field exactly what it needs: the right amount of water, fertiliser and pesticide at the right time. Instead of treating a whole field the same way, farmers can respond to variation within it.

The tools

  • GPS-guided machinery that plants and sprays precisely.
  • Soil and moisture sensors.
  • Satellite and drone imagery that detects crop stress, disease or water shortages.
  • Variable-rate application, where machines adjust the amount of fertiliser or seed across a field.
  • Weather and advisory apps that send farmers timely information.

The economic benefits

Precision agriculture can raise yields and cut costs by avoiding waste. Using less fertiliser and water also reduces environmental harm. Studies in countries with large farms, such as the United States, have found significant savings on inputs.

Small farms

In countries like India, where most farms are small, expensive machinery is often unaffordable. But cheaper tools are spreading:

  • Mobile phone advisory services give weather forecasts, market prices and crop advice by text or voice message. Research in India, including studies of services giving advice by phone, has found farmers act on such advice.
  • Drones can be hired as a service for spraying. India launched schemes from 2021 onward to promote agricultural drones.
  • Custom hiring centres let small farmers rent machinery.
The phone call that saves a crop

A farmer receives a voice message warning of heavy rain in two days and advising a delay in spraying pesticide. Without the message, the rain would have washed the pesticide away, wasting money. Simple information delivered at the right time can have large economic value, even without advanced equipment.

Barriers

Barriers include cost, limited internet in rural areas, low digital skills, and the need for advice tailored to local conditions. Voice-based services in local languages help farmers who cannot easily read text, including farmers with low vision.

Thinking farm technology only helps big farms

The most advanced machinery suits large farms, but low-cost tools such as phone advisories, shared drones and rented equipment can bring many benefits of precision agriculture to small farmers.

Key takeaways
  • Precision agriculture tailors water, fertiliser and pesticide to each part of a field.
  • It can raise yields, cut costs and reduce environmental harm.
  • Small farmers benefit most from low-cost tools like phone advisories and hired drones.
  • Cost, connectivity and skills remain barriers to adoption.
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