Farming Technology: Investing In The Future Of Agriculture

Investing in farming technology is an increasingly attractive prospect for investors. With a growing global population and finite resources, the world needs to produce more food with less land. This has led to a wave of new technologies being applied to the farm and across the supply chain, from data capturing devices and sensors to robotics and automation. These innovations stand to revolutionize the food and agriculture industry, and investors are keen to get in on the action.

There are several ways to invest in farming technology. One option is to invest in public equities, such as publicly-traded agribusinesses like Monsanto and Syngenta, which are investing heavily in new innovations. Another route is through venture capital funds, which provide access to a basket of early-stage, private agritech companies. Direct private market investing is also an option for accredited investors, who can now use online equity investment platforms to invest directly in private companies in the venture space.

Cloud computing for farm management

Cloud computing has emerged as a transformative force in the agricultural sector, offering unprecedented opportunities for efficiency, scalability, and innovation. This technology allows farmers to store and process data over the internet, enabling them to make data-driven decisions and optimise their operations.

At its core, cloud computing is an information technology paradigm that allows users to access shared pools of configurable system resources over the internet. In the context of agriculture, cloud computing has various applications, including precision farming, resource management, supply chain optimisation, and disease and pest control.

Precision farming, for instance, enables farmers to access detailed insights about their crops and soil conditions. By analysing data collected through sensors and aerial images, farmers can tailor their practices to the specific needs of each plot, thereby enhancing efficiency and crop yields. Cloud platforms can also analyse weather patterns and soil moisture levels to recommend precise irrigation and fertilisation schedules, reducing wastage and environmental impact.

Additionally, cloud computing streamlines the agricultural supply chain by providing real-time data on crop stages, market demand, and logistics. This transparency helps reduce losses, improve product quality, and ensure timely delivery to markets. Furthermore, cloud-based systems facilitate early detection of diseases and pest infestations, allowing for timely interventions that prevent widespread damage and safeguard yields and investments.

The advantages of cloud computing in agriculture are significant. It reduces the need for expensive hardware and software, offering scalable solutions accessible to small and medium-sized farmers. It also enhances data integration from multiple sources, improving the accuracy of predictions and recommendations. Moreover, cloud computing contributes to more sustainable agricultural practices by optimising resource use, aligning with global efforts to combat climate change and preserve natural resources.

However, the adoption of cloud computing in agriculture also faces challenges, including data security and privacy concerns, the need for reliable internet connectivity in rural areas, and the requirement for technical skills among farmers and agricultural workers. Nonetheless, the integration of cloud computing with emerging technologies such as artificial intelligence, the Internet of Things, and blockchain holds immense promise for revolutionising the agricultural sector.

Precision agriculture

Benefits of Precision Agriculture

• It can help farmers make informed decisions about planting, managing, and harvesting.
• It can help manage local fertilization and irrigation quantities.
• It can steer machinery, locate and manage pests, diseases, or droughts, and protect the soil from leaching or drying out, thereby saving costs, reducing wasted crops and fuel, and managing the workload.
• It can help farmers monitor and manage their crops more effectively, allowing them to respond to potential problems (such as pests or diseases) more quickly and effectively.
• It can help farmers optimize their irrigation practices, which can save water and energy.
• It can provide farmers with a wealth of information to build up a record of their farm, improve decision-making, foster greater traceability, enhance marketing of farm products, improve lease arrangements, and improve the inherent quality of farm products.
• It can reduce the pressure of agriculture on the environment by increasing the efficiency of machinery and putting it to use.
• It can produce large quantities of varied sensing data, which can be adapted and reused for archaeology and heritage work, enhancing the understanding of archaeology in contemporary agricultural landscapes.
• It can save water and energy, especially in high-value fruit and vegetable crops.
• It can reduce environmental degradation and increase fuel efficiency, resulting in lower carbon footprints.

Technologies Used in Precision Agriculture

Some of the technologies used in precision agriculture include:

• Global Positioning System (GPS) for precision ag: GPS is used to provide precise location information for mapping and navigation purposes. Farmers can use GPS receivers mounted on their vehicles or equipment to collect data on the location, shape, and size of their fields, as well as the location of specific features within the fields.
• Geographic Information System (GIS): GIS is used to create, store, and analyze spatial data related to farming operations, such as field boundaries, topography, soil types, crop types, and other features.
• Grid Sampling for targeted farming: Grid sampling is a technique for segmenting fields into units to calculate the proper application rates for crop inputs.
• Variable-Rate Technology (VRT): VRT consists of farm field equipment with the ability to precisely control the rate of application of crop inputs.
• Yield Monitors for Precision Agriculture: A yield monitor is a device that is used in precision agriculture to measure and record crop yields as they are harvested.
• Remote Sensors for precise data capture: Remote sensors are used to indicate very common farming issues such as weed density, disease prevalence, and nutrient deficiency.
• Auto-Guidance Systems for Precision Agriculture: Auto-guidance systems use GPS and other sensors to help farmers navigate their vehicles and equipment with a high degree of accuracy.
• Proximate Sensors for precise crop and soil data capture: Proximate sensors are used to measure soil and crop properties as the tractor passes over the field.
• Computer Hardware and Software: Computer support is required to analyze the data gathered by other components of precision farming technology and to make it accessible in formats such as maps, graphs, charts, or reports.

Challenges of Precision Agriculture

Despite the many benefits of precision agriculture, there are some challenges to its implementation. Some of these include:

• High costs of investment and learning: The purchase cost of precision agriculture infrastructure and services can be high due to the investments needed to use this technology on an individual/farm-based level.
• Extra work: Implementing precision technologies can require extra work, as data collection, analysis, and interpretation can be time-consuming and complex.
• Data privacy concerns: Farmers may be worried that third parties will gain ownership of their private data.
• Lack of standardization: The absence of uniform standards can hamper interoperability between different precision agriculture technologies.
• Data sharing and ownership issues: Concerns regarding farm data sharing and ownership can pose obstacles to the widespread use of AI in agriculture.
• Limited adoption: Despite the benefits of precision agriculture, the adoption rate is still very low, due to factors such as cost, farmer perception, and lack of resources.

Livestock farming technology

Automated Dairy Installations

Automated dairy installations milk cows without human intervention, and the milk sensors help farmers monitor milk quality.

Automated Cleaning Systems

Automated cleaning systems remove waste, enabling cleaner and disease-free environments.

Non-Antibiotic Treatments

Armenta's non-antibiotic treatment uses acoustic pulse technology (APT) for bovine mastitis, a cow disease responsible for over $6 billion in annual losses in the US and Europe.

Automated Feeder Systems

Automated feeder systems provide animals with feeding mixtures tailored to their specific needs and in the right amount.

Robotics, AI, and Big Data

Faromatics employs robotics, AI, and big data to increase animal welfare and farm productivity.

Motion Sensors

High-tech devices with motion sensors are used to keep birds from pillaging crops. After discovering that birds are sensitive to the colour green, a researcher from the University of Rhode Island helped design a laser scarecrow, which projects green laser light. The light is invisible to humans but can shoot 600 feet across a field to startle birds before they destroy crops.

Precision Livestock Farming (PLF)

PLF involves the automated monitoring of animals to improve their production, reproduction, health, welfare, and impact on the environment. PLF tracks large animals, such as cows, "per animal", but smaller animals, such as poultry, "per flock". PLF technologies include cameras, microphones, and other sensors for tracking, as well as accompanying computer software.

Farm management software

• Financial insight: integrated accounting, financial planning, budgeting, and bookkeeping features that are tailored to farms.
• Production optimisation: the ability to view all input and operational data in one place, receive alerts for low or expiring inventory, and map and report on grow locations, animal enclosures, waterways, and critical boundaries.
• Livestock management: record-keeping, farm mapping, tracking, grazing, breeding, health management, sales, and reporting software to manage a livestock business.
• Order management and e-commerce: seamless integration with a crop plan and inventory to simplify orders, track sales, and manage customer communications.
• Task management: tools to manage and assign tasks from anywhere, even offline, helping teams to stay on top of priorities and track their time.

FarmLogic is one example of a farm management software provider. Their system includes a mobile application that allows farmers to access information about their farming activities on a tablet, smartphone, or desktop computer. Features include GPS field mapping, work order management, pest database access, and soil sampling.

Water management technology

Water is a critical input for agricultural production and plays an important role in food security. Water management technology is essential to ensuring sustainable intensification of agriculture and efficient water use. Here are some ways to invest in water management technology in farming:

Irrigation Infrastructure

Investing in irrigation infrastructure is crucial as irrigated agriculture represents 20% of total cultivated land yet contributes 40% of the total food produced worldwide. This includes investments in physical water movement through changes in initial allocations of surface and groundwater resources, primarily from agricultural to urban, environmental, and industrial users.

Advanced Technologies

Soil moisture sensors and satellite evapotranspiration measurements are advanced technologies that can improve efficiency and productivity in water usage for agriculture. These technologies provide accurate data on soil moisture and evapotranspiration rates, enabling farmers to optimize their irrigation practices and reduce water wastage.

Sustainable Water Management Practices

Technological innovations can support sustainable water management practices. For example, drip irrigation systems, such as N-Drip, deliver water directly to plant roots, reducing water usage by up to 50% while improving crop quality. This approach conserves water, increases crop yield, and minimizes environmental contamination from excess fertilizers.

Water-Efficient Farming Methods

Investing in water-efficient farming methods, such as hydroponics and aeroponics, can significantly reduce water usage. Hydroponics involves growing plants in water and nutrient solutions, while aeroponics suspends crop roots in the air and intermittently sprays them with water and nutrients. These methods can be used in indoor vertical farming to increase crop yield per unit area while conserving water.

Water Conservation Projects

Supporting water conservation projects can help address water scarcity issues. For example, the World Bank's projects in Peru, Bangladesh, Nepal, Cameroon, and The Gambia have improved water management practices and increased agricultural productivity in these regions. Similar initiatives can be funded to promote sustainable water use and food security.

Frequently asked questions