How will regulation influence commercial viability of autonomous equipment in US production agriculture?

Jordan Shockley, Carl Dillon, James Lowenberg‐DeBoer and Tyler Mark

Applied Economic Perspectives and Policy, 2022, vol. 44, issue 2, 865-878

Abstract: Autonomous equipment for crop production is on the brink of commercialization in the United States but federal, state, and local policies could affect commercial viability and hinder adoption. This article examines the farm‐level implications of both a speed restriction and on‐site supervisory regulations. The rules reduce the profitability of autonomous machinery, and for some scenarios autonomous machines are no longer an economically viable alternative to conventional machinery. Regulations also increase the optimal number autonomous machines required and influence production practices. Smaller farms have more flexibility in supporting the rules because they have more to gain from the use of autonomous equipment.

Date: 2022
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https://doi.org/10.1002/aepp.13178

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Persistent link: https://EconPapers.repec.org/RePEc:wly:apecpp:v:44:y:2022:i:2:p:865-878

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