Evaluating the impact of government investment support for crop robots: a multi method approach

Olivia Spykman and Andreas Gabriel

No 344216, Agri-Tech Economics Papers from Harper Adams University, Land, Farm & Agribusiness Management Department

Abstract: Technology plays an important role in the transition towards more sustainable agriculture. The associated costs for farmers may be lowered through government investment support programmes. The German federal state of Bavaria runs such a programme for various technologies, including crop robots that help to reduce chemical plant protection input. Based on official funding application data, an economic model relying on field trial data, and results from an early adopter focus group discussion, the case of the crop robot FD20 (FarmDroid ApS) in sugar beet is evaluated in detail. The funding application data indicates that applicants manage larger farms and work according to organic standards more often than the Bavarian population of farmers. The applicants’ counties of residence match areas of sugar beet production, suggesting a use of the robot mainly in sugar beets. The economic evaluation indicates a shift in minimum area of sugar beet production necessary for economical use of the robot caused by the government investment support. The minimum necessary area varies by field size and number and points to the importance of setup times and agricultural structures for robot profitability. The focus group discussion highlights the relevance of the government investment support scheme for farmers’ investment into a new type of technology shortly after its market entry. This multi-method approach has provided complementing conclusions from its three components that would not have been possible from each piece of research individually. Overall, the government investment support appears to have been integral to the success of crop robots in Bavaria and may thus serve as an example for other policymakers looking to create similar technology investment support schemes to move forward the digital transition in agriculture.

Keywords: Crop Production/Industries; Public Economics; Research and Development/Tech Change/Emerging Technologies (search for similar items in EconPapers)
Pages: 14
Date: 2023-09-19
New Economics Papers: this item is included in nep-agr
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Persistent link: https://EconPapers.repec.org/RePEc:ags:haaepa:344216

DOI: 10.22004/ag.econ.344216

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