Precision Farming is an old traditional farming in the modern way, which involves optimizing agricultural production by improving the precision of the existing agronomic management activities by implementing them at a subfield scale. Such an experimental implementation has been done in Karnataka as the project on precision farming in selected field crops. Hence, to analyze the economic benefits of precision farming in comparison with conventional farming the present study was undertaken. The study was conducted at Raichur district, Karnataka. The data were collected by personal interview method by the pretested schedule. The study results indicated that though the cost of cultivation was marginally higher (1.47 %) in precision farming than non-precision farming, the yield obtained under management practices of precision farming (38.03 q/ha) were much higher than (26.48 q/ha) conventional farming situations. Hence there was a net gain of ` 35,898.82/ha under the adoption of precision farming. Returns per rupee spent was 2.03. Considering its benefits there is a need to encourage and popularize this technology with the support of line departments, SAU’s and other extension agencies.