Technology is bringing new Opportunities to Small Farms and Urban Agriculture

The following is based on extracts of our podcast with Dave Donnan, Partner and Global Food & Beverage Lead at A.T. Kearney.

Technology is going to have a big impact on the localisation of food and there are several different aspects to consider.

As a couple of quick points from the consumer side; companies can send emails, text or social posts that can notify customers of the arrival of fresh produce; technology allows for faster promotion and merchandising of products. Secondly, technology allows consumers to quickly access video or images of the produce their buying, to prove its authenticity; for example, how their beef was raised or where their carrots were grown.

The other side of this technology is back at the farm. So if we look at Agri-Tech (including farm technology) right now, small-scale farmers are able to take advantage of technologies that will help them to dramatically improve the yield and quality of their products, and lower the cost.

One such technology is drones that can quickly survey and photograph every square meter of a field, better allowing farmers to understand where growth is good, sunlight is ample, where water supply problems exist etc. Farmers can then use sensor technology or other ways of measuring the complexion of soil (including moisture and nutrients levels) and start to get into precision farming.

Precision farming refers to the practice of applying fertilizers, waters, pesticides etc. to exactly the point where it is needed and in the right quantity, as opposed to the traditional practice of spraying the entire farm.

Precision farming refers to the practice of applying fertilizers, waters, pesticides etc. to exactly the point where it is needed and in the right quantity, as opposed to the traditional practice of spraying the entire farm. This delivers a precise application of crop nutrients and crop protection, while being able to measure (using drones or even satellite technology) the results of those changes.

This can be coupled with something that is happening in all industries; big data and data analytics.

If farmers start taking the information about their farm and uploading this to the cloud, and every small-scale farmer in the area or state does the same, this can be combined with data on seeds and weather etc. to start to draw informed conclusions on what to plant, how to irrigate and what to do with the crops in order to maximise yield, taste and many other critical factors.

And this is all available to small farmers, not just the big players. Technology has become so accessible and affordable that farmers are able to take what is essentially consumer technology and apply them to their farm.

One farmer in South Dakota said that he could not afford the self-driving big combine harvesters or tractors, so he went with his son to buy a drone and some other technology from their local electronics store, and with some ingenuity they were able to jerry-rig a combine with an iPhone to be a self-driving combine. They were able to use GPS data delivered to the iPhone to steer the tractor, and use a drone to bring them intelligence on what to do next on the farm.

One of the things we’re seeing is that the number of available jobs in farm technology (big data, drone technology, precision agriculture etc.) is growing at a tremendous rate, and more agriculture colleges are producing students able to take up these positions. But it’s a different type of farmer to the farmer of twenty years ago; they’ll be spending more time looking at data and looking at trends, and then making decisions based on that.

Small farmers have a huge opportunity if they can use technology to improve their yield and their cost structure, as they’re able to adapt to produce artisanal or heritage crops a lot faster than larger farms can. A good analogy to use would be 3D printing in manufacturing; the opportunity for a small operation to rapidly deliver a product.

When you take all of the above and apply it to the local food movement — the desire from consumers to have authentic, locally-produced food — it presents, hopefully, a way to solidify the place of small probably family-run farms within the food chain.

One final aspect to think about is what we’re calling ‘Hyperlocalization’, where crops are actually be grown in cities

One final aspect to think about is what we’re calling ‘Hyperlocalization’, where crops are actually be grown in cities — usually referred as urban agriculture or indoor farming. It started as hothouses and greenhouses that have been around for hundreds of years, but now with technology we’re seeing the use of LED lighting systems with a spectrum specifically designed for plants, as well as trickle feed irrigation of water and nutrients within a hydroponic plant system.

This experimentation is leading to warehouses and abandoned buildings being retrofitted with LED lighting and trays, and growing leafy greens and vegetables within blocks of the restaurants and grocery stores that want to buy them. What’s more, with this technology it is possible to grow year-round using technology in this way.

Are you working with interesting technology in agriculture? If you’d like to tell your story and be part of our blog or podcast, please email tom [at] agribusiness.academy.

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In January 2019, Agribusiness Academy is running a 5 week course for Agri-Tech entrepreneurs and investors, designed to help develop and assess business models like Indigo Ag. Find out more and apply here:https://agribusiness.academy/pages/agri-tech-course