Revolutionizing Agriculture: The Role of Robotics, AI, and Big Data in Modern Farming

Agriculture has been moving towards more innovative solutions that help farmers to reduce costs and optimize their operating processes. Innovations such as robotics, digitalization, and automation have significantly advanced in the past years and address the increased food demand, labor shortages, and the need for sustainable processes in the sector.

The main goal of digitalization and robotization in agriculture is increasing productivity and profitability by minimizing resource use, also referred to as Precision Agriculture. It also tackles the current problem of labor shortages in agriculture, caused by economic conditions, as utilizing these new production methods makes manpower less needed for certain tasks.

“The presence and use of technology within the Food & Ag segment is already well embedded and continuing to grow and expand. It’s a large segment, and we, at DLL, analyze the types of assets and customers that we are going to focus on; however, it is of ever-growing importance.” said DLL head of New Business Development, James Ferguson. Many agricultural needs are addressed by technology, and intelligent systems such as precision sensors, Artificial Intelligence, and the Internet of Things bring this process to a higher level. “Whether it’s GPS, AI, data, drones, or robotics, it’s a segment that will further become an integral part of our everyday working and personal lives. Our Food and Agriculture business unit wants to stay close to these trends and identify today what could be the opportunity for tomorrow.”

Revolutionizing Ag: The Advancements and Advantages of Robotization and AI

Robotization and AI in agriculture includes software/digital platforms for data-driven crop support, autonomous cultivation, drones, and various types of robots for harvesting and sorting. A robot equipped with AI software can learn from mistakes and thus increase performance. Techniques commonly found in agriculture robotics include crop support software, automatic guided vehicles (AGV), grippers, and vision and sensing techniques.

Farmers around the world face similar challenges like optimizing harvests, difficulties in the area of sustainability, and reducing costs, for which robots and AI can provide part of the solution. Robotization has already appeared in agriculture. It has many advantages like dealing with pests easier and more precisely, harvesting crops at a faster pace and volume than humans do, and taking into account many variables like market demand, that are hard for farmers to monitor simultaneously without the use of technology.

Regarding the cost of acquisition of robotics and AI, the cost of a robot will be between EUR 150,000 and EUR 500,000, depending on the tasks the robot will perform. However, labor costs continue to rise, and harvesting can easily exceed EUR 80,000 per hectare, meaning that a harvesting robot will pay for itself within a few years. We have already seen this in the sorting and packing process as well. Furthermore, robots and AI are often available through subscriptions or fee-per-use, as ‘software as a service‘ (SaaS) is already quite common.

The market for robots and AI represents enormous potential value for these reasons. A recent Rabobank survey found that companies committed to digitalization were more likely to achieve revenue growth over the past three years than those that did not. However, innovation goes beyond acquiring and using technology. Competencies such as analytical skills, creativity, and redesigning business processes will become more important for agricultural companies.

Big Data in Ag: Transforming Farming Operations through Data-Driven Decision Making

Big data refers to the big mass of information gathered through sensors or other recording equipment that, in farming, could range depending on the sector in which a business operates. The main purpose of data collection and analysis is for farmers to make more informed decisions, leading to an increase in productivity and optimization of their inputs. Big data is already gaining popularity in the agricultural sector, with many innovative tools and software being developed to address the need for better management decisions. Nowadays, farmers can use sensors, drones, and other tools to capture real-time data that is then measured and stored, offering the most appropriate recommendations and plans of action. Some of the most recent developments in this field include monitoring of soil moisture, nitrogen application, livestock wellbeing, equipment management, and even carbon footprints. The more and the better data is collected, the better decisions will be made, minimizing resources spent on trial and error.

Big data, combined with other technologies such as Internet of Things devices for data collection or AI, has enormous potential for improving profits and the quality of the goods being produced. Looking into the future, there is also a great possibility for this data to be stored and accessed utilizing blockchain applications. This information can be accessed from any place at any time, meaning that farmers don’t even need to be in the farm office and can make informed decisions through their smartphones for example.

Overcoming Barriers to Adoption: The Future of Smart Agriculture in the Digital Age

The adoption of such technologies has been increasing and the global Smart Agriculture market size is expected to grow to USD 43,37 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 10.2%. However, despite the many benefits it brings to the industry, some factors still restrain farmers from adopting. Some of them are the lack of general knowledge about technology and how it can be used and implemented, as well the perception among farmers that these technologies would limit job opportunities in the field. The truth is, technology is not replacing labor, it creates opportunities to make work interesting and lighter. Farmers tend to perceive AI, IoT, and Big Data as a digital world concept, and their resistance is not caused by conservativism or fearing the unknown, but by a lack of understanding of the practical application of such tools. The main concern still lies in up-front investments, maintenance, and the financial ability of farmers to afford such technologies. The current economical state and volatility of the market slow down the optimal adoption rates.

To address these issues, the industry should work towards bringing the benefits of digital transformation to the forefront, technology providers should offer appropriate training to help farmers with implementation, and most importantly, the right financial circumstances should be ensured.

DLL: Innovative Equipment Financing for the Agriculture and Food Industry

DLL, understanding the importance of innovation as a driving force for businesses, is a leading provider of equipment and technology financing to the Agriculture and Food industries. We are constantly working towards creating innovative solutions and diversifying our portfolio to make this digitalization possible for farmers. Major constraints for adoption continue to be technology costs that we work hard to eliminate and make equipment affordable by financing new and used equipment.

If you have any questions about how DLL can help you finance your food or agriculture business plans, please contact us, or check our website for more information.