A Heckman's two-stage method is used in conjunction with data from the 1998 Agricultural Resource Management Study to estimate the likelihood of adopting a variable rate application technology (VRT) and the impact of such adoption on the per-acre costs of fertilizers and lime in cash grain production. Results highlight the importance of operator's level of human capital and attitude toward risk, along with size and location of farm in impacting VRT adoption decisions. Results also indicate no significant cost-savings attributable to VRT adoption.