Conventional management vs. precision viticulture: A comparison of different levels of mechanization and their impact on vineyard profitability

Purpose: Viticulture is one of the most input-intensive agricultural sectors, in which the adoption of precision technologies could contribute significantly to reduce environmental impacts and operating costs. Previous studies have primarily focused on technical aspects, often examining individual farm operations or specific technologies using hypothetical data, rather than assessing economic impacts. To fill this research gap, this study evaluates the profitability of adopting varying levels of precision technologies in an Italian vineyard, focusing on two key farming operations - fertilisation and harvesting - using empirical data. Method: This study adopted a partial budgeting approach comparing three differently managed vineyards: (a) conventional management (conventional spreader and manual harvest); (b) low-innovative management (VRT spreader and self-propelled harvester); (c) high-innovative management (VRT spreader and selective self-propelled harvester). Results: The findings show that high-innovative management achieved the highest profitability value of 10,732.82 € ha− 1 year− 1, which is twice that of conventional management. This is due to both direct cost savings (-66.1%) and increased revenues (+ 33.6%). However, precision technologies are only economically viable for farms larger than 25.81 ha (high-innovative management) and 16.42 ha (low-innovative management). Conclusion: In this context, as the results of this study demonstrate, the provision of public subsidies aimed at reducing the high investment costs could represent a valid instrument to promote the adoption of precision agriculture technologies among winegrowers, thereby reducing the minimum farm size for their adoption. This study enriches the economic literature on precision agriculture technologies, also providing useful insights for winegrowers and policymakers.