Can Ag Tech achieve in precision agriculture what traditional RD&E hasn’t?
- By: "Farm Tender" News
- Ag Company News
- Jul 23, 2018
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By Darren Hughes
Precision agriculture (PA) has been well researched and shown to increase economic returns. In the northern agricultural region of Western Australia sensing, interpreting and acting upon within field variation is worth between $30-$60/ha (Robertson et al. 2007). Similarly, Robertson (et al. 2008) demonstrated the benefits of variable rate fertiliser management to be worth up to $22/ha. Despite the positive economics returns from PA, farmer adoption continues to remain low.
The Grains Research and Development Corporation (GRDC) surveys Australian grain farmers every two years and collects information on a range of farming practices. The 2016 survey indicates that only 35% of farmers use yield mapping (despite the technology being available for at least 20 years), 7% are using variable rate fertiliser maps (as shown above) and only 5% are using remote sensing. In 2004, it was estimated that only around 3% of Australian grain farmers were using some form of PA technology (Price 2004). If traditional RD&E hasn’t been able to encourage wide spread adoption (>80% adoption is considered full adoption), how will agtech achieve it? Without adoption there is no revenue, without revenue there is no business.
I have previously written about the need for agtech to develop innovative revenue models, in addition to innovative technology. I believe that for agtech start-ups working in PA to be successful they must clearly demonstrate the increase in profit farmers gain by using their technology. A revenue model where risk is shared between the company and farmer, as per the end point royalty system for plant varieties, has potential. This is easier said than done because how can you prove the increase in profit was a direct result of the technology? More work is still required.
There is significant potential for agtech start-ups working in PA both within Australia and globally. Farmers know blanket applications of the same rate of fertiliser is not maximising profit and are looking for solutions. Entrepreneurial, innovative start-ups have the potential to develop new solutions. However, if the development of past PA technologies is any indication, the challenge is going to get farmers to adopt and ultimately pay for these new solutions.
Individual start-ups will fine this very challenging but if work together, we stand a better chance of succeeding.
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