Drones are commonly known for their early military uses. Recently, many companies have begun to adapt drones from military to their own business ideas. The growing usage of drones in our economy can be seen through companies through such examples as Chipotle to delivering burritos or Amazon to delivering packages. While their ability to be used in delivery of products for commercial companies is important, they also have potential for tremendous impact on other realms of the economy such as the field of agriculture. In this paper, I am going to do discuss the economic impact of drones on a micro level with agriculture and drones’ macro impact in accordance to the jobs that stem from their integration. Because of drones, we could see a huge
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Typical drones can range in cost from very basic and economical ($150) to very expensive and elaborate ($150,000). Farmers and ranchers’ drones usually have systems that are designed specifically for agricultural purposes and generally range from about $1,500 to $25,000 depending on the specific requirements of the buyer. Agricultural users also have the option of hiring a professional drone service that owns the drones and operates them on their behalf. This fee sometimes ranges from around three to five dollars per acre to a couple hundred dollars each time depending on the services performed (amount of photos being taken, integration of apps and maps, etc.) for images designed for use in agriculture. Comparative costs, however, for small acreage can increase …show more content…
The savings in the cost of purchasing an airplane or hiring an airplane to examine your crops compared to buying or even hiring a professional drone service is enormous. Pilots who fly the planes are receiving less and less work because of the integration of drones. This, in effect, could put a strain on a small, subset of the job market--the plane manufacturers, the pilots, the mechanics, etc. Because of drones growing importance in the agriculture industry, as well as many other important industries that I have not touched on, it is believed that there is going to be an increased job demand in the drone industry as well as a possible surge in the U.S. agricultural contribution to the overall economy. One way to examine this relationship is to look at the elasticity of demand. As the price of the drones goes down, the demand for the drones will go up. When looking at this curve in relation to jobs, the same factors still apply. Eventually, more professional drone service companies will come into the market, driving the price of the services offered down. When the price gets driven down, the increased desire from farmers and ranchers to utilize this technology will go up because it will be more affordable to
Typical drones can range in cost from very basic and economical ($150) to very expensive and elaborate ($150,000). Farmers and ranchers’ drones usually have systems that are designed specifically for agricultural purposes and generally range from about $1,500 to $25,000 depending on the specific requirements of the buyer. Agricultural users also have the option of hiring a professional drone service that owns the drones and operates them on their behalf. This fee sometimes ranges from around three to five dollars per acre to a couple hundred dollars each time depending on the services performed (amount of photos being taken, integration of apps and maps, etc.) for images designed for use in agriculture. Comparative costs, however, for small acreage can increase …show more content…
The savings in the cost of purchasing an airplane or hiring an airplane to examine your crops compared to buying or even hiring a professional drone service is enormous. Pilots who fly the planes are receiving less and less work because of the integration of drones. This, in effect, could put a strain on a small, subset of the job market--the plane manufacturers, the pilots, the mechanics, etc. Because of drones growing importance in the agriculture industry, as well as many other important industries that I have not touched on, it is believed that there is going to be an increased job demand in the drone industry as well as a possible surge in the U.S. agricultural contribution to the overall economy. One way to examine this relationship is to look at the elasticity of demand. As the price of the drones goes down, the demand for the drones will go up. When looking at this curve in relation to jobs, the same factors still apply. Eventually, more professional drone service companies will come into the market, driving the price of the services offered down. When the price gets driven down, the increased desire from farmers and ranchers to utilize this technology will go up because it will be more affordable to