Assessing Investment in Precision Farming for Reducing Pesticide Use in French Viticulture

The paper develops a mathematical programming model for assessing the impact of Environmental Policy instruments on French winegrowing farm’s adoption of pesticides-saving technologies. We model choices with regards to investment in precision farming and plant protection practices, in a multi-periodic framework with sequential decision, integrating uncertainty on fungal disease pressure and imperfect information on equipment performance. We focus on recursive models maximizing a Utility function. These models are applied on a representative sample of 534 winegrowers from the French Farm Accountancy Data Network (FADN). As expected, both ecotaxes and green subsidies make precision farming equipment more profitable, but the investment rate remains however low and concentrated on basic systems. One explanation is grower’s financial constraint in a context of market crisis and farm indebtedness. Shortcomings and further development of the models are discussed.