The publication "Economics of Drone Ownership for Agricultural Spray Applications" introduces cost-estimating tools designed for both farmers and custom operators interested in investing in drones for spray applications. These tools enable producers to calculate their own drone application costs based on their specific circumstances, helping them make informed decisions about whether drone ownership or contracting out spray services is more cost-effective.

A detailed analysis of the costs associated with owning and operating drones for agricultural spray applications is provided, with a focus on the Agras T40 model. The study evaluates both ownership and operating costs per acre for farmers and custom operators, considering key factors like depreciation, interest, maintenance, labor, and battery costs.

The findings suggest that for farmers spraying 1,000 acres annually, the total cost per acre for drone applications is approximately $12.27. This is in contrast to custom hire rates, which are typically around $16 per acre. Based on these calculations, owning a drone could be cost-effective for farms spraying at least 980 acres annually. For custom operators spraying 4,000 acres annually, the cost per acre is around $7.39.

Key expenses include drone maintenance, fuel, labor, and, notably, battery costs. Batteries are a critical component in drone operations, and their replacement costs contribute significantly to the overall expense. The study emphasizes that ownership costs—such as depreciation, interest, and battery replacement—constitute the largest part of the total cost per acre. This highlights that the feasibility of drone ownership largely depends on the scale of operations and the number of acres sprayed annually.

Overall, the study provides valuable insights into how drones can offer significant savings for large-scale farming operations, but it also underscores the importance of considering all associated costs when evaluating this technology.

The publication was developed by the MU Agricultural Business and Policy Extension in collaboration with the Lee Greenley Research Farm. For questions, please contact Dr. Adauto Rocha or Andrew Kientzy.