For a long time, agriculture hasn’t been a business attractive to investors, due to many reasons: the long production cycle, large losses during cultivation, collection and storage of the crop. The main was the impossibility of automation of the biological processes and the lack of progress in increasing productivity and innovation.
The use of IT in agriculture was limited to the use of computers and software mainly for financial management and tracking of commercial transactions. Nevertheless, not so long ago, farmers began to use digital technologies to monitor crops, livestock and various elements of the agricultural process.
Technologies evolved when the IT companies learned the way to control the whole cycle of plant growing or livestock production with the help of smart devices. These gadgets can transmit and process the current parameters of each object and its environment (equipment and sensors, measuring the parameters of soil, plants, microclimate, animal characteristics, etc.).
Also read: IoA – Internet of Things for Animals
By combining objects into a single network, exchanging and managing data based on IoT, it became possible to automate the maximum number of agricultural processes by creating a virtual (digital) model of the entire production cycle. The interconnected chain links the production cost, with mathematical precision, schedules the work, takes emergency measures to prevent losses in the event fixed threat, calculates possible yields and production profits.
Internet of Things is a kind of combination of fundamental discoveries in the field of data analysis (Data Science, artificial intelligence, machine learning), innovative achievements in the development of sensors and self-controlled (unmanned) equipment, which made it possible to collect data and control all objects at a level previously unattainable.
Moreover, the connected network solutions, management systems, platforms and applications, which deduce methods of growing plants and animals to a new level.
Agriculture is becoming a sector with a very intense data flow. Information comes from various devices located in the field, on the farm, from sensors, agrotechnics, meteorological stations, drones, satellites, external systems, partner platforms and suppliers.
General data from various participants in the production chain collected in one place allows to: obtain information of new quality, find patterns, create value for all involved participants, apply modern scientific data processing techniques and, on their basis, make the right decisions that minimize risks, improving business producers and customer experience.
Farmers, agronomists and consultants are given access to mobile or online applications that, after uploading particular field data (coordinates, area, crop type, past yields) can provide accurate recommendations and a sequence of actions.
These know-hows are considering many historical and current factors, both on their site and in the external environment, combining data from engineering, sensors, drones, satellites, and other external applications.
Now the application helps to determine the best time for planting seeds, fertilizing, moisturizing or harvesting, calculating the time of loading and delivery of the goods to the buyer; Monitor the temperature in the storage and transportation area to avoid spoilage and deliver fresh products; forecast the yield and income, and receive advice on improving the processing of plants in comparison with past indicators.
One of the brightest examples of how IoT can help the business growth is OVAL – an IoT App. Generally it’s a Mobile App to connect Phone with the sensors. Once connected with Gateway user can monitor changes in motion, light, temperature, moisture and proximity and get notified if a sensor is disturbed. The data can be received by text, push notification, email or even a pre-programmed phone call.
As per the main arguments in favour of the investment attractiveness of “smart agriculture” are the following:
-Investments in agrotech make up less than 0.5% of total agriculture ($ 7.7 trillion), and less than 3.5% of all world venture investments ($ 128.5 billion) – which is extremely low for the sector that accounts for 10% of World GDP.
-For comparison, investments in health care make up about 12% of global GDP, and as much (12%) as venture investments, which is almost 3 times more than investment in AgTech.
The modern agrotechnologies differ from existing technical solutions by the speed with which they can scale and enter global markets and the disruptive character of business, so new start-ups can replace established businesses by offering more competitive services (at price, quality, ease of use).
All in all, even if a small fraction of the total venture investment in the industry is successful, the result that innovative technology can bring will be able to increase the yield of the farm to a level not comparable to the growth that has been achieved in the history of agriculture since the first days of mechanization. Would you like us to assist you? Get in touch or Drop us a message firstname.lastname@example.org and get your ultimate consultation absolutely free.