Precision agriculture technology adoption and technical efficiency

We explore the relationship between precision agriculture (PA) technology adoption and technical efficiency using 2016 USDA Agricultural Resource Management Survey (ARMS). Efficiency gains from PA are likely cumulative, that is, true impact of farming depends on integration complementary tools. To examine benefits different bundles, we perform a two-step analysis. First, use cluster analysis to identify distinct producer groups based patterns in adoption. These map naturally onto classic curve (laggards, late majority, early innovators). Second, stochastic frontier (SFA) meta-frontier (SMFA) estimate differences groups. find farms with advanced bundles significantly more technically efficient than non-adopters. Differences not found be driven by heterogeneous production technologies, but rather inefficiencies input usage at farm level. Our results have strong implications for consolidation US agriculture.