US officials hope to encourage more farmers access precision agriculture tools with the help of loans worth up to $500,000.
A bipartisan bill introduced by lawmakers in the House of Representatives wants to see the introduction of a precision agriculture loan program to help producers invest in new technology, or retrofit existing equipment with precision ag equipment.
It’s hoped the program will increase the adoption of ag-tech in the US, which currently only utilised by only a quarter of producers, according to USDA figures.
Under the proposal, farmers would receive funding via the USDA’s Farm Service Agency. Loans would need to be repaid within three to 12 years, with interest rates set at lower than 2%.
Democrat Representative Cheri Bustos, who co-sponsored the bill, said farmers need support to ensure they can manage the challenges of increased production costs.
“With rising fertiliser costs and environmental concerns, it’s more important than ever to promote precision agriculture,” she said. “Unfortunately, high costs make this cutting-edge technology out of reach for too many farmers.”
Surveys conducted amongst farmers in the US indicate adoption of precision agriculture technology is much lower than expected, thanks in part to the cost of investment.
According to the American Fruit Growers’ 2022 state of the industry report, 42% of fruit growers don’t use precision agriculture tools because they are too expensive.
Meanwhile the USDA’s 2021 Farm Computer Usage and Ownership report found just 25% of farmers use precision ag technology to manage crops or livestock.
