How Technology is Reshaping The Profitability of Farms
Insights from the Commodity Classic
DENVER — Amid the bustling atmosphere of the 2025 Commodity Classic, Purdue University’s economists shed light on a topic at the heart of the modern agricultural industry: how technology can transform profitability on farms. For farmers across the globe, technology is no longer a simple add-on but a vital lever of success.
The Levers of Farm Success
Michael Langemeier, director at Purdue’s Center for Commercial Agriculture, emphasized the importance of five key managerial levers: output price, yield, costs, assets, and people. “Today we’re going to talk about the asset side,” he explained. Technology reigns supreme in this domain, promising to reshape farmers’ balance sheets while impacting yields and costs.
Navigating the Technology Landscape
According to AgriNews, identifying the “right” technologies is an ongoing challenge for farmers. Questions such as “How do I select?” or “Does my community embrace technology?” are crucial in guiding decisions. Langemeier suggests that technology’s promise lies in its ability to farm more acres efficiently, reduce machinery costs, enhance crop value, and revolutionize labor productivity.
Evaluating Technological Impact
Chad Fiechter, Purdue’s research director, underscored the practical steps farmers take: “We guide ag economists in using partial budgeting to weigh the costs versus benefits.” Farmers are encouraged to consider whether technology increases bushels, decreases costs, or enhances operational management.
The Bottom Line of Farm Technology
Fiechter advises that these tech evaluations boil down to straightforward calculus: Is the addition of technology yielding a net positive result in terms of output or cost? If yes, it’s time to embrace it; if not, it’s wise to reconsider. The path forward in agriculture hinges on this delicate balance-driven by data, strategic analysis, and innovation.
In a rapidly evolving agricultural landscape, Purdue’s insights remind us of a not-so-distant future where technology not only supports but defines our farming practices.
