Shweta Sinha and Isriya N. Bunyasiri
The purpose of this paper is to explore factors that affect the smallholder’s interest in investing in precision agriculture (PA) technology, focusing on variable rate technology (VRT). Results have shown that factors that significantly influence the likelihood of VRT investment are perceived usefulness and worthiness of VRT, confidence to use VRT, concerns on environmentally friendly production, use of agricultural mobile application and farm size. In addition, the intention rate to invest falls dramatically if the amount of government subsidy declined. Higher amount of government subsidy is needed to induce the VRT adoption for small-scale farmers. This study suggests policy implications such as increasing the awareness of VRT usefulness and worthiness and environmentally friendly production, promoting the use of mobile application, and providing training and capacity building to use VRT.