Bill Overview
Title: Precision Agriculture Loan Program Act of 2022
Description: Precision Agriculture Loan Program Act of 202 This bill establishes a loan program within the Farm Service Agency to assist agricultural producers in purchasing precision agriculture equipment, such as geospatial mapping, data management and analytics software, and network connectivity products and solutions. Precision agriculture refers to managing, tracking, or reducing crop or livestock production inputs, including seed, feed, fertilizer, chemicals, water, and time, at a heightened level of spatial and temporal granularity to improve efficiencies, reduce waste, and maintain environmental quality.
Sponsors: Rep. Feenstra, Randy [R-IA-4]
Target Audience
Population: Agricultural producers globally who could benefit from precision agriculture equipment
Estimated Size: 2000000
- The program targets agricultural producers who would benefit from the financial capacity to invest in precision agriculture tools.
- Precision agriculture is an increasing trend globally, aimed at optimizing resources within agriculture through technology.
- Farmers across different scales, from large agribusiness to small family farms, fall under this target demographic, as precision agriculture can be applied to various agriculture segments.
- Globally there are approximately 570 million farms according to FAO data, most of which can potentially benefit from precision agriculture tools.
Reasoning
- The policy targets agricultural producers who could benefit from advancing technology in their farming practices. Within the US, there are around 2 million farms, with a diverse range of operations, including small family farms and large agri-businesses. Precision agriculture is not universally adopted, and those with limited access to capital can significantly benefit from the loans provided by this policy.
- The budget is limited, meaning not every farm will be able to access loans in the first year. Depending on the size and operational nature of the farm, the impact of precision agriculture technology will vary. For instance, larger farms might experience higher immediate benefits from improved efficiency, whereas smaller farms may gain competitiveness in the longer run after adopting these technologies.
- The simulated interviews cover a diverse range of demographics from large-scale farm owners to urban-based individuals working in agriculturally-related sectors, who might not directly benefit from the policy.
Simulated Interviews
Large Scale Corn Farmer (Iowa)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- I believe in technology, and this program sounds promising. It's definitely expensive to switch to precision tools without external help.
- With the loan, we can upgrade our old equipment, which should help manage our resources better and potentially increase yield.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Vineyard Owner (California)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Access to precision technology would help us significantly in managing water usage, especially given the drought conditions.
- I'm hopeful the program prioritizes those of us committed to sustainability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Cattle Rancher (Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- We need to reduce costs and this could be a way to better manage feed and cattle health.
- Precision agriculture tools could give us an edge in managing our ranch more efficiently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Urban Farmer (New York)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Even though our urban setup limits scale, the technology could streamline our operations.
- Using data analysis, we could better serve our community and manage resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Agricultural Technology Developer (Florida)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- This is great for the industry. More demand for tech means our company grows too.
- Even indirectly, it's beneficial as it pushes innovation forward.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retired Farmer (Kansas)
Age: 62 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 11/20
Statement of Opinion:
- I'm glad the next generation has better tools. We struggled without such technologies.
- It's nice to see governmental support for farming innovations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Soybean Farmer (Illinois)
Age: 40 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 13/20
Statement of Opinion:
- This could help us meet high standards expected abroad.
- Financial assistance to upgrade equipment might make us more competitive globally.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 6 |
Organic Vegetable Farmer (Oregon)
Age: 36 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- Precision tools tailored for organic farming could be a game-changer.
- Access to data on soil and crop health would be most beneficial.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Corn and Soybean Farmer (Nebraska)
Age: 48 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 14/20
Statement of Opinion:
- The cost of implementing these technologies is a hurdle right now.
- Loans will help us minimize waste and optimize outputs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Agricultural Policy Analyst (Georgia)
Age: 29 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- Policy is crucial for advancing precision farming widely.
- It will particularly benefit those unable to otherwise afford this tech.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $2000000000 (Low: $1500000000, High: $2500000000)
Year 2: $2100000000 (Low: $1575000000, High: $2625000000)
Year 3: $2205000000 (Low: $1653750000, High: $2756250000)
Year 5: $2425500000 (Low: $1829125000, High: $3031875000)
Year 10: $2922925000 (Low: $2192193750, High: $3653656250)
Year 100: $7089946875 (Low: $5317460156, High: $8862433594)
Key Considerations
- The cost of precision agriculture technology is decreasing over time, potentially reducing future costs of similar programs.
- The loan repayment structure and interest rates will affect the net cost to the government.
- Adoption rates among farmers will be crucial in determining the program’s overall impact and cost-effectiveness.