Use of precision agriculture technologies

Although smallholder farmers in LDCs and developing countries are trying to leapfrog the process of

digitalization and literally “skip the line” in adoption of advanced technologies, such a scenario is only visible for now in developed countries. Application of technologies such as blockchain, AI, robotics and drones are most common among farmers in Canada, the United States, EU and some emerging economies including Brazil,

India, China, etc. One of the group of technologies that combine a whole-farm management approach using ICT, satellite positioning (GNSS) data, remote sensing and proximal data gathering for purpose of farming is precision agriculture (PA), which aims to reduce operating costs by preventing farmers from overapplying inputs. Even if input use and operating costs are

increased under PA, yields can grow enough to increase operating profits. The capital expenditures needed to implement PA technologies can raise overhead costs, but can also enable farmers to substitute capital and labour for operating inputs (Schimmelpfennig, 2017).

Figure 3-22 summarizes the adoption rates of various PA and agriculture data management tools in Nebraska, Canada in 2015. Producers covered in the survey had widely adopted many available technologies, including

Figure 3-22 Precision agriculture technology use in Nebraska (Canada), 2015.

Source: Castle, Lubben and Luck, 2015.

0 20 40 60 80 100 Computer with access to high-speed internet

Cell phone with internet access GPS guidance systems Satellite/aerial imagery Chlorophyll/greenness sensors Soil sampling Yield monitor Yield Maps (if yes to yield monitor) Precision maps Autosteer Variable rate technology Automatic section control

soil sampling (98 percent) and computer high-speed Internet access (94 percent). Yield monitors and maps and GPS guidance systems were the next most common practices with high adoption rates of more than

80 percent. Yield monitors and maps may be a prerequisite for any additional PA practices. These are also a first step for building historical data for further analysis.

For PA, guidance systems are crucial for improving field efficiency and reducing driver fatigue. Guidance systems facilitate the use of auto-steer and automatic section controls, which were also widely adopted among survey respondents. Variable rate (VR) technology is also widely adopted at 68 percent among survey respondents (Castle, Lubben and Luck, 2015.). The study also shows that producers use various farm software during farm operation and for analysing and production and management decision-making. Figure 3-22 provides insight on the uses of software. Software use for yield mapping was most common, followed by use of VR nutrient and fertilizer application as well as VR seeding.

Furthermore, there is significant software use for soil sampling and record tracking.

PA is most advanced among arable farmers, particularly with large farms and field sizes in the main grain

growing areas of Europe, the United States and Australia, and where a business model to maximize profitability is the main driver. Adoption of PA and its use have increased over the years at a global level. Perhaps not all the technologies are applicable for smallholder farms, but decreasing costs of digital technologies and increasing knowledge and awareness among farmers means that those technologies that are applicable are being applied more often. To date, this trend of adoption among

smallholder farms is occurring among smallholders located in developed and developing countries.

PA has become part of standard operating procedure for many US farming operations. While the efficiencies and per-hectare savings offered have been confirmed by research and growers alike, there remain barriers to operating the sometimes not-so-user-friendly technologies. Figure 3-23 shows the use of precision technologies over time in the EU. Precision services and manual control guidance systems have been the most used and there has been rapid adoption of auto-steer guidance systems. Remote sensing services have increased as well as soil electrical conductivity mapping and GNSS for logistics.

Detailed statistics concerning how business is organized at the EU level are scarce, and little information is shared by multinational dealers both because of confidentiality and because of the large heterogeneity of cases found in Europe (European Parliament, 2014). Holland et al. (2013), in their US dealerships survey, found that more than 80 percent also provided custom services. These figures are likely to be indicative for Europe. Major consolidation across the retail and wholesale industries (see Section 3.3.2), and trends in solutions management for the grower add enormous complexity to the agricultural market. However, these interactions will enable the distribution channel to identify solutions to fit their individual business model and provide a higher return on invested capital. Retailers, agencies and farmer dealers will continue to be the touch point for the grower. As a result, the industry’s fertilizer, seed and crop protection segments may change dramatically.

Precision services offered

GPS guidance with manual control/lightbar GPS guidance with auto control/autosteer Field mapping (GIS) for legal/billing/insurance Satellite/aerial imagery for internal use Soil electrical conductivity mapping GPS for logistics

80%

70%

60%

50%

40%

30%

20%

10%

0%

2004 2005 2006 2007 2008 2009 2011 2013

Figure 3-23 Use of precision technology over time on farms at EU level, 2004-2013.

Source: European Parliament, 2014.

2004 2005 2006 2007 2008 2009 2011 2013 2016 60%

50%

40%

30%

20%

10%

0%

Soil sampling with GPS Field mapping with GIS Variable seeding with GPS Satellite imagery

Figure 3-24 Precision agriculture services offered over time in EU, 2004-2016

Source: European Parliament, 2014.

However, based on data available, contract services in EU-28 have increased rather rapidly but they are a function of the available funds of farmers; that is, these services are likely to be reduced in years of poor returns.

Soil sampling with GNSS and field mapping are the two most popular services, but yield monitor data analysis and satellite imagery use has increased in the last few years and show an even greater rise forecast to 2016.

The adoption of additional precision services over time (Figure 3-24) shows a steady increase with an expected rapid increase towards 2016.

Figures 3-23 and 3-24 illustrate that PA could play a substantial role in meeting the increasing demand for food, feed and raw materials in EU-28, while ensuring sustainable use of natural resources and the environment.

Nevertheless, there are challenges to adoption of PA in the EU in terms of the sizes and diversity of farm

structures. An assessment of the potential actions to support adoption of PA by medium and smaller sized farmers is identified as an important enabling step.

3.1.8 CONCLUSION

Education and income levels are strong determinants, not only of whether or not people use the Internet, but also of how they use it. Internet users with higher levels of education use more advanced services, such as e-commerce and online financial and government services, to a higher degree than Internet users with lower levels of education and income levels, who use the Internet predominantly for communication and entertainment purposes. The connectivity gap continues to close: in the coming years, it is expected that a billion people will start using mobile Internet, making over 60 percent of the world population connected. Despite the fact that almost every second person in the world is

using the Internet, this number is significantly lower in LDCs, being only one in seven people. This is number is emphasized among youth. Those from higher income countries tend to use the Internet for a broader range of activities compared with youth from LDCs and developing countries. This gap is even deeper in LDCs, where in most of the countries, the proportion of male Internet users is higher than female Internet users.

Access to the Internet is a critical component of new technologies, but universal Internet access remains an issue.

Mobile phone users are using their devices for different activities, mostly differentiated based on age, gender and personal preferences. The most common activities are phone calls, sending text messages and e-mails, making videos and social networking, but the pattern of mobile usage varies based on age and gender, and also differs across urban and rural regions. Mobile agricultural apps show significant potential for modernization of the agricultural sector, in both developed and developing countries, and as mobile phones are the most affordable and accessible ICT tools, they will be the game-changers in the agriculture and food sector, supported by the existing social platforms and VoIP networks. The main obstacles to contact with rural communities and farmers is the high Internet cost and limited smartphone ownership, causing limitations to information flow among farmers and restricting the available support.

With the ability to make better decisions about their crops and farms, farmers mostly in developed and some developing countries use PA approaches to increase yields, protect the environment and improve their livelihoods.

Regarding the main constraints to adoption of advanced digital technologies, the lack of standards and limitations on the exchange of data between systems prevents adoption of machinery and instrumentation from different brands and companies. In addition, there is a lack of independent advisory/consultancy services, as there is a lack of validated agronomic models to help make decisions on the investments required.

3.2 Digital skills among rural