A drone can cover a corn or soybean field in minutes, identify crop stress from the air and put detailed imagery in your hands. But before buying one for crop scouting, you need to answer a more basic question: Will the technology make the farm more money than it costs?
For Sophie Lee, assistant professor and Extension specialist in farm viability at Rutgers University, the answer comes down to the economics of the operation — particularly acreage, scouting costs and the value of the farmer’s time.
Speaking during an Iowa Learning Farms webinar Wednesday, Lee walked through when owning a drone for crop scouting makes financial sense and when hiring someone else to do the work may be more economical.
“The goal is not to own a drone,” Lee says. “The goal is to get the scouting information you need in the most economical way for your operation.”
That means farmers need to look beyond the drone itself and calculate the full cost of collecting and using scouting information.
The Real Cost Of A Drone
One of the easiest mistakes is comparing the price of a recreational drone with the cost of a complete crop-scouting system.
The example Lee shared is a “heavy duty” capable drone, using RTK positioning for precise mapping and a multispectral camera that can detect differences in crop vigor that may not be visible to the naked eye.
The “right” system also requires FAA licensing, image-processing software, batteries and chargers. Insurance may also be a consideration.
In Lee’s example, the drone and equipment cost about $3,500. Once licensing, software and other startup expenses were included, the initial investment approached $4,900.
And buying the equipment does not make every scouting trip a free undertaking.
“Every time you fly, you still have to do maintenance of your drone. You have to pay for your time and potentially other operating costs,” she notes.
Lee recommends separating the expenses into two categories: 1) fixed costs associated with owning the drone system and 2) operating costs associated with each scouting trip. Both need to be included when calculating the cost per acre.
Lee used 300 acres as a baseline example. Her assumptions include:
- 13 drone visits during the season
- 3 hours per scouting round
- $20 per hour for labor
- $1 per acre for maintenance
- 7% interest rate on the investment
The three-hour estimate accounts for more than flight time. Setup, battery changes, wind and other real-world conditions take time as well.
Under those assumptions, the annual cost of owning and operating the drone comes to roughly $2,800. Spread across 300 acres, that is approximately $9.17 per acre per season, Lee estimates.
That figure is not a one-size-fits-all. Change the acreage, number of flights, labor value, equipment cost or software expenses, and the economics change.
But it gives growers a starting point for comparing drone ownership with paying for scouting services.
The Number Of Acres Matter
Acreage is one of the biggest factors in the calculation because much of the drone investment is fixed, Lee notes.
The drone, software and licensing costs do not necessarily change much whether a grower scouts 150 acres or 400 acres. As acreage increases, those fixed costs can be spread across more acres.
Lee’s analysis shows that at 150 acres, many farms would struggle to justify the purchase within five years, even when custom scouting rates are relatively high.
At 300 to 400 acres, more combinations of scouting rates and visit frequency produce more reasonable break-even.
That makes one question especially important before buying: How many acres will you actually scout with the drone each year?
It is not simply how many acres the farm has or how many acres the manufacturer says the drone can cover, Lee adds. The relevant number is how many acres will actually be flown, processed and used for your management decisions.
Don’t Make Your Time Worth Zero
Another cost that can easily disappear from the calculation is the operator’s labor.
Lee notes there is a substantial learning curve with drone scouting. “You have to learn how to fly the drone, how to process the images, and troubleshoot problems, and figure out how to actually use the information it gives you,” she says.
There are also software subscriptions, licensing requirements, maintenance and potentially insurance costs. Software platforms can change pricing, features or support, creating additional time and training costs.
Most importantly, your time has value.
“Just because you don’t write yourself a check for three hours of work, that does not mean those three hours are free,” Lee says.
“During the growing season, your time may be one of the most valuable resources you have on your farm.”
A drone may reduce the need to walk every field, but it does not eliminate the work of scouting, she adds. Some of that work shifts into flight planning, data processing and interpretation.
When Does Ownership Truly Make Sense?
The key comparison for many growers is not whether they can afford to buy a drone. It is whether owning one costs less than paying someone else to provide the scouting that they can then act upon.
In Lee’s baseline example, custom scouting that costs less than about $9 per acre per season is difficult for drone ownership to beat economically.
At a $10-per-acre custom scouting rate with relatively few visits, Lee’s analysis shows a drone potentially breaking even in about four years. At $15 per acre or more, particularly on larger acreages, ownership becomes more competitive and can pay back more quickly.
But every additional flight adds operating costs.
A grower making only a handful of scouting trips faces a different calculation from one flying every week. More flights mean more labor, maintenance and other operating expenses.
“Don’t only look at the purchase price,” Lee says. “Add the ownership cost with the operating costs together, because those operating costs can add up very quickly.”
The important point, Lee adds, is to calculate the cost of getting the information — not simply the cost of buying the technology. In other words, make sure all the numbers can fly, in addition to the drone.
