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Some in the comments remarked that is was a waste of government spending to use a perfectly good F-16 as target practice.
Not so fast, says CNN's defense blog, Security Clearance:
...this wasn't a jet pulled out of service just to be shot down. It's been mothballed in the Arizona desert for 15 years. All the planes that will be converted into pilotless fighter targets will come from the Air Force's long-term storage.
The blog does not say how much it costs to convert the aircraft into
Repurposed as a training aircraft, the QF-16 drones give American fighter pilots a previously unattained ability to train the way they fight. With this technology, pilots can engage actual fighter aircraft that have the look, capabilities, and behavior of enemy aircraft.
Boeing says it has retrofitted six of the F-16s into drones. We'll follow this program as it develops.