This paper discusses two kinds of analysis that can be used. There are no magic solutions and it is important that farmers realize what may be the right decision for one farm may not be the right decision for another farm. Farmers need to seek the most appropriate technology for their operation, not necessarily the newest technology. Steps Prior to Evaluation Before discussing the analysis techniques, there are two steps that must be completed to evaluate any technology. First, farmers must know their goals.
Economists often assume profit maximization is the only goal.
However, there are additional considerations. Most choices hinge on making money but there are other goals that may enter into the decision. Different technologies use different resource mixes and this mix of resources can determine whether or not a technology is appropriate. For example, some farmers adopt different technologies because they save labor. If the labor that is freed up has a higher use, then such technologies will usually be appropriate.