At the 2025 Commodity Classic in Denver, economists from Purdue University shed light on a critical aspect of modern farming: the role of technology in enhancing farm profitability. The discussion, led by Michael Langemeier, director of the Center for Commercial Agriculture at Purdue, and Chad Fiechter, research director at the same center, provided farmers with a roadmap to navigate the complex world of agritech.
Langemeier began by outlining the five managerial levers that farmers can pull to improve their operations: output price, yield, costs, assets, and people. The focus of the discussion was on the asset side, specifically how technology can impact a farm’s balance sheet and other operational aspects.
Technology, Langemeier explained, can significantly influence a farm’s productivity and efficiency. However, its effectiveness varies from farm to farm, making it crucial for farmers to ask the right questions before adopting new technologies. He posed a series of questions to help farmers evaluate the potential benefits and drawbacks of new technologies. These questions ranged from the farm’s readiness to adopt technology to the potential impact on crop rotations and labor efficiency.
Fiechter built upon Langemeier’s points, emphasizing the importance of partial budgeting exercises in technology adoption. These exercises involve identifying the costs and benefits of new technologies to determine their potential impact on a farm’s bottom line. He suggested that farmers consider whether a technology will increase bushels, decrease production costs, improve operation management, or enhance their quality of life.
The economists’ advice underscores the need for a strategic approach to technology adoption in farming. With the right technologies, farmers can boost production, streamline processes, and improve efficiencies. However, the key lies in identifying the right technologies and integrating them effectively into the farm’s operations.
The discussion at the Commodity Classic served as a reminder that technology is not a one-size-fits-all solution in farming. Instead, it is a tool that, when used correctly, can significantly enhance a farm’s profitability. As farmers continue to face challenges such as climate change, labor shortages, and market volatility, the insights shared by Langemeier and Fiechter provide a valuable guide to navigating these challenges through strategic technology adoption.