How do I find the marginal profitability of using precision ag practices in wheat production?

To find the marginal profitability of using precision ag practices in wheat production, you will need to gather data and perform a series of calculations. Here are the steps to follow:

1. Determine the additional costs of implementing precision ag practices. This may include the cost of equipment, software, sensors, and any necessary training or maintenance.

2. Estimate the increase in yield or reduction in input use resulting from the implementation of precision ag practices. You can do this by comparing the expected outcomes of using precision ag practices to the conventional methods.

3. Calculate the additional revenue generated or costs saved per unit of output. This is the difference between the value generated by the additional yield or cost reduction and the additional costs incurred.

4. Find the marginal profitability by dividing the additional revenue or cost savings by the additional units of output.

For example, let's assume that implementing precision ag practices in wheat production results in an additional yield of 10 bushels per acre and incurs additional costs of $200 per acre. If the market price of wheat is $5 per bushel, you would calculate the marginal profitability as follows:

Additional revenue = 10 bushels/acre x $5/bushel = $50/acre
Additional costs = $200/acre

Marginal profitability = (Additional revenue - Additional costs) / Additional yield
= ($50 - $200) / 10 bushels/acre
= -$15/bushel

In this example, the marginal profitability of using precision ag practices in wheat production would be -$15 per bushel, indicating a potential loss.