Smart farming models in urbanised regions: Prospects for economic efficiency and sustainability

Vasyl Puyu, Piotr Ponichtera, Valerii Havriliuk, Iryna Sheiko and Dmytro Kozyrsky

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2025, vol. 32, issue 2

Abstract: The aim of this study was to assess the economic efficiency and sustainability of implementing smart technologies in agriculture within urbanised regions, specifically using the case of the agro-industrial holding “Myronivsky Hliboproduct” (MHP). The methodology incorporated both quantitative and qualitative analytical methods. An empirical analysis of the yield of key crops was conducted. To evaluate the economic efficiency of the implemented technologies, a graph of the company’s income dynamics was constructed, enabling an assessment of the impact of smart technologies on the enterprise’s financial performance. The key findings indicate that the adoption of smart technologies at MHP contributed to a significant increase in crop yields and a reduction in resource costs. For instance, maize yields rose from 8.6 t/ha in 2016/2017 to 10 t/ha in 2021/2022, remaining stable at 9.9 t/ha in 2023/2024. A similar trend was observed in other crops: rapeseed yields increased from 3.7 t/ha to 4.2 t/ha, while soybean yields grew from 2.4 t/ha to 2.8 t/ha. These results are attributed to the application of advanced techniques, including Real-Time Kinematic (RTK) navigation, automated management systems, and variable-rate fertilisation. An analysis of economic indicators revealed steady growth in the company’s revenue even under challenging economic conditions. The graph demonstrated that MHP’s income increased significantly during the period of active smart technology adoption. In 2024, the company’s revenue reached USD 770 million, confirming the economic efficiency of the implemented solutions. Furthermore, the use of digital platforms for field monitoring and process management optimised machinery maintenance costs and yield forecasting. The conclusions confirm that smart farming is an effective tool for modernising agriculture in urbanised regions. The practical significance of the study lies in demonstrating the efficiency of smart farming adoption for enhancing agricultural productivity. The results indicate the potential for substantial yield increases and resource cost reductions through the use of innovative technologies such as precision farming, digital platforms, and automation

Keywords: Research; and; Development/Tech; Change/Emerging; Technologies (search for similar items in EconPapers)
Date: 2025
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