Agriculture

Lab2Land

The agriculture industry has radically transformed over the past 50 years. Advances in machinery have expanded the scale, speed, and productivity of farm equipment, leading to more efficient cultivation of land. Seed, irrigation, and fertilizers also have vastly improved, helping farmers increase yields. Now, agriculture is in the early days of yet another revolution, at the heart of which lie data and connectivity. Artificial intelligence, analytics, connected sensors, and other emerging technologies could further increase yields, improve the efficiency of water and other inputs, and build sustainability and resilience across crop cultivation and animal husbandry.

Without a solid connectivity infrastructure, however, none of this is possible. If connectivity is implemented successfully in agriculture, the industry could take on $500 billion in additional value to the global gross domestic product by 2030, according to our research. This would amount to a 7 to 9 percent improvement from its expected total and would alleviate much of the present pressure on farmers. It is one of just seven sectors that, fueled by advanced connectivity, will contribute $2 trillion to $3 trillion in additional value to global GDP over the next decade.

Demand for food is growing at the same time the supply side faces constraints in land and farming inputs. The world’s population is on track to reach 9.7 billion by 2050,1 requiring a corresponding 70 percent increase in calories available for consumption, even as the cost of the inputs needed to generate those calories is rising.2 By 2030, the water supply will fall 40 percent short of meeting global water needs,3 and rising energy, labor, and nutrient costs are already pressuring profit margins. About one-quarter of arable land is degraded and needs significant restoration before it can again sustain crops at scale.4 And then there are increasing environmental pressures, such as climate change and the economic impact of catastrophic weather events, and social pressures, including the push for more ethical and sustainable farm practices, such as higher standards for farm-animal welfare and reduced use of chemicals and water.

To address these forces poised to further roil the industry, agriculture must embrace a digital transformation enabled by connectivity. Yet agriculture remains less digitized compared with many other industries globally. Past advances were mostly mechanical, in the form of more powerful and efficient machinery, and genetic, in the form of more productive seed and fertilizers. Now much more sophisticated, digital tools are needed to deliver the next productivity leap. Some already exist to help farmers more efficiently and sustainably use resources, while more advanced ones are in development. These new technologies can upgrade decision making, allowing better risk and variability management to optimize yields and improve economics. Deployed in animal husbandry, they can enhance the well-being of livestock, addressing the growing concerns over animal welfare.

But the industry confronts two significant obstacles. Some regions lack the necessary connectivity infrastructure, making development of it paramount. In regions that already have a connectivity infrastructure, farms have been slow to deploy digital tools because their impact has not been sufficiently proven.

The COVID-19 crisis has further intensified other challenges agriculture faces in five areas: efficiency, resilience, digitization, agility, and sustainability. Lower sales volumes have pressured margins, exacerbating the need for farmers to contain costs further. Gridlocked global supply chains have highlighted the importance of having more local providers, which could increase the resilience of smaller farms. In this global pandemic, heavy reliance on manual labour has further affected farms whose workforces face mobility restrictions. Additionally, significant environmental benefits from decreased travel and consumption during the crisis have driven a desire for more local, sustainable sourcing, requiring producers to adjust long-standing practices. In short, the crisis has accentuated the necessity of more widespread digitization and automation, while suddenly shifting demand and sales channels have underscored the value of agile adaptation.

The challenge the industry is facing is thus twofold: infrastructure must be developed to enable the use of connectivity in farming, and where connectivity already exists, strong business cases must be made in order for solutions to be adopted. The good news is that connectivity coverage is increasing almost everywhere. By 2030, we expect advanced connectivity infrastructure of some type to cover roughly 80 percent of the world’s rural areas; the notable exception is Africa, where only a quarter of its area will be covered. The key, then, is to develop more—and more effective—digital tools for the industry and to foster widespread adoption of them.

As connectivity increasingly takes hold, these tools will enable new capabilities in agriculture:

Massive Internet of Things. Low-power networks and cheaper sensors will set the stage for the IoT to scale up, enabling such use cases as precision irrigation of field crops, monitoring of large herds of livestock, and tracking of the use and performance of remote buildings and large fleets of machinery.
Mission-critical services. Ultralow latency and improved stability of connections will foster confidence to run applications that demand absolute reliability and responsiveness, such as operating autonomous machinery and drones.
Near-global coverage. If LEO satellites attain their potential, they will enable even the most remote rural areas of the world to use extensive digitization, which will enhance global farming productivity.

By the end of the decade, enhanced connectivity in agriculture could add more than $500 billion to global gross domestic product, a critical productivity improvement of 7 to 9 percent for the industry.5 Much of that value, however, will require investments in connectivity that today are largely absent from agriculture. Other industries already use technologies like LPWAN, cloud computing, and cheaper, better sensors requiring minimal hardware, which can significantly reduce the necessary investment. We have analyzed five

use cases—crop monitoring, livestock monitoring, building and equipment management, drone farming, and autonomous farming machinery—where enhanced connectivity is already in the early stages of being used and is most likely to deliver the higher yields, lower costs, and greater resilience and sustainability that the industry needs to thrive in the 21st century

How is Lab2Land going to address this and be a part of this revolution?

Connectivity offers a variety of ways to improve the observation and care of crops. Integrating weather data, irrigation, nutrient, and other systems could improve resource use and boost yields by more accurately identifying and predicting deficiencies. For instance, sensors deployed to monitor soil conditions could communicate via LPWAN, directing sprinklers to adjust water and nutrient application. Sensors could also deliver imagery from remote corners of fields to assist farmers in making more informed and timely decisions and getting early warnings of problems like disease or pests.

Smart monitoring could also help farmers optimize the harvesting window. Monitoring crops for quality characteristics — say, sugar content and fruit color—could help farmers maximize the revenue from their crops.

Most IoT networks today cannot support imagery transfer between devices, let alone autonomous imagery analysis, nor can they support high enough device numbers and density to monitor large fields accurately. Narrowband Internet of Things (NB-IoT) and 5G promise to solve these bandwidth and connection-density issues. The use of more and smoother connections between soil, farm equipment, and farm managers could unlock $130 billion to $175 billion in value by 2030.

L2L – Dronacharya

Agriculture has been using drones for some two decades, with farmers around the world relying on pioneers like Yamaha’s RMAX remote-controlled helicopter to help with crop spraying. Now the next generation of drones is starting to impact the sector, with the ability to survey crops and herds over vast areas quickly and efficiently or as a relay system for ferrying real-time data to other connected equipment and installations. Drones also could use computer vision to analyze field conditions and deliver precise interventions like fertilizers, nutrients, and pesticides where crops most need them. Or they could plant seed in remote locations, lowering equipment and workforce costs. By reducing costs and improving yields, the use of drones could generate between $85 billion and $115 billion in value.

Hence Lab2Land AgriTech Solutions will offer an additional, indirect benefit, the value of which is not included in the estimates given in these use cases. The global farming industry is highly fragmented, with most labor done by individual farm owners. Particularly in Asia and Africa, few farms employ outside workers. On such farms, the adoption of connectivity solutions should free significant time for farmers, which they can use to farm additional land for pay or to pursue work outside the industry.

We find the value of deploying advanced connectivity on these farms to achieve such labor efficiencies represents almost $120 billion, bringing the total value of enhanced connectivity from direct and indirect outcomes to more than $620 billion by 2030. The extent to which this value will be captured, however, relies largely on advanced connectivity coverage, which is expected to be fairly low, around 25 percent, in Africa and poorer parts of Asia and Latin America. Achieving the critical mass of adopters needed to make a business case for deploying advanced connectivity also will be more difficult in those regions, where farming is more fragmented than in North America and Europe.