Predictable Income — An elusive concept for Indian farmers and how Precision Farming is helping change the tune

Farming and economic prosperity are two words that you don’t see together as far as the Indian farmers are concerned. Mired by unpredictability, dated farming practices, and middlemen taking huge cuts, your average Indian farmer is ill-equipped to make a good living, let alone earn their keep.

Agriculture has a significant stake in the country’s economics, adding a sizable 20% in GVA (Gross Value Added) even though most agricultural units are small and marginal land holdings. With close to 55% of the population relying solely on this trade, it is only prudent that policy reforms and tech innovations target this sector to make the lives of millions economically sound.

Luckily, thanks to regulatory changes and COVID’s impact on society, things are looking up. The Agritech sector has received major interest from the investor community in the past few years. Since 2017 there has been a significant investment in the ecosystem, from $91 million to $329 million, with a CAGR of 53% (Source: Tracxn; Bain PE deals database; Bain analysis). The investment growth witnessed within the sector is expected to see a projection of $30B — $35B by the year 2025.

But what does it mean for the farmers? Is there a potential for them to make a substantial living and not just mere sustenance? The answer lies within the sub-branch of Agritech, Precision Farming.

Precision Agriculture

So, what is Precision Farming? In a nutshell, it is a scientific approach to farming that employs high-tech sensors and analysis tools to help improve crop yields, reduce wastage as well as input costs and ultimately improve profitability.

So why is it so important in the world of agriculture?

Most farms in India function on guesswork, and guesswork doesn’t lead to consistency or efficiency. These farmlands are often poorly monitored, and the entire system is based on dated agricultural practices — dated wisdom passed down over generations. A typical Indian farm will have these characteristics:

• Fertilizers are sprayed or administered uniformly across the field without taking into account the variability of soil composition in each section of the farmland
• Seeds are sown without any specific patterns which take into account the appropriate distance and depth needed for a particular crop to grow
• Most farms are irrigated by flooding the plot, which results in wastage and potential damage to the crop
• Tilling of land is done without specificity of the crop in concern
• Decisions are made based on traditional practice and not on science

Precision Farming, on the other hand, is a complete overhaul of this dated farming system. Outfitted with smart sensors and analysis tools, this modern approach enables the farmer to collect data in a geospatial format and track variables like soil, moisture, rain, weather, fertilizer and seed rates, and others, enabling well-informed analysis and decision making. Harnessing the power of IoT devices, drones, GPS, GIS frameworks, AI, ML, and other accouterments has made farming a precise endeavor with guesswork out of the equation.

So how does this help a farmer improve his economic situation? The first step is to reduce farm overheads which can be achieved through Precision Farming via

• Cutting down on wastage/overconsumption of seeds and fertilizers. Thanks to automation and tracking under Precision Farming, the number of seeds or fertilizers used is strictly monitored and regulated. This optimized approach helps reduce overheads
• GPS guided AB lines for tractors can reduce fuel expenses by providing the best possible route to cover the entire farm with little to no overlap

In unison with the above cost-cutting benefits, data-driven decision-making allows farmers to make farming an economically viable pursuit. This can be achieved through

• Yield analysis tracked through the Yield Monitoring System allows the farmer to keep track of yearly data of harvest and factors affecting it like soil type, nutrient deficiencies, seed quality, fertilizer and seed consumption, water usage, etc. This georeferenced data can be revisited, and necessary adjustments can be made in the next cycle to cut costs and wastage while improving yield and quality
• Access to previous harvest data to make a scientific conclusion on what led to the poor yield and lower profit
• Yield forecasts allow the farmer a greater degree of certainty of the expected returns for the current harvest

Though the initial investment is high, the amount saved through controlled input and reduced wastage through Precision Farming makes for an attractive ROI in the long run. Making this shift would not only serve the farmers economically but also the nation as a whole in terms of sustainability and environmental protection.