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Abstract

This paper examines how cotton farmers' perceptions about their spatial yield variability influence their decision to adopt precision farming technologies. Utilizing cross-section survey data from 12 Southeastern states and a two-step econometric modeling approach, we find that farmers who perceive their yields as more spatially heterogeneous will more likely use site specific information gathering technologies and apply their inputs at a variable rate. In addition, our empirical analysis shows that perceptions about future profitability and importance of precision farming, along with socio-economic factors, also drive the technology adoption decision. These results have implications for producers contemplating the variable rate management decisions, as well as dealers selling these precision farming technologies.

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