e-farming, what the hell is that?
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Introduction
The integration of Information Technology (IT) into farming industries has lagged in comparison to other sectors of the economy, there has been a slow adoption rate to utilizing the internet and integrating IT into business operations and transactions. However, in recent years farmers have proved they do have the confidence to leave the old ways behind and grab the technology bull by the horns as such. The broadening variety and availability of specialist farming technologies has allowed for increased efficiency in production and sales areas, and increasing adoption of existing technologies such as the internet has allowed for the more efficient management of information and lower transaction costs. For a country as agriculturally focused as New Zealand, the application of IT into business processes not only positively affects the farmers themselves but the economy as a whole.
What is E-farming
"E-farming" can be described as the integration and utilization of information technology in farming related operations. The requirement for e-farming initiatives came about because "farming is an information rich activity" (Swain, 2002). The best way to manage information is through the use of IT, hence the foundation of e-farming.
The incorporation of IT into farming involves the integration of many different technologies, with each positively impacting the efficiency in how farms conduct themselves. This includes adoption of the internet, information systems and management, GPS technologies and automating various activities through the use of IT.
Traditional methods of farming incorporated little to no use of IT and some farms still stand by this today, despite the potential for dramatically increasing operations efficiency. With agriculture arguably being the most traditional industry, it is easy to see how the use of IT in conducting business is lagging in comparison to other industries. However, with the increasing availability of specialist IT equipment coupled with increasing marketing for these products, farmers are becoming more aware of the benefits that can be gained utilizing IT.
History
The history of e-farming is relatively short due to the nature of the industry and work ethic of the people involved. Farming is a traditional trade and therefore operations involved in production have largely remained habitual in nature, as hard working as they may be. The need for information management and sharing however has been recognized for a long time; in 1928, H.M. Dixon believed that "30-50 actual farm records in every country every year furnish a helpful guide to the country agent… This should be the ultimate goal toward which farm management extension should be directed" (Dixon, 1928, p378). Fortunately, in this day and age farmers do have the ability to apply IT into their operations and transactions, however, certain factors have delayed the integration of IT.
One of the main factors that have hindered the implementation of IT strategies in farming has been the general location of farms – rural areas. Access to such technology as the computers and internet is generally lower in rural areas as well as well as wireless network availability, even electricity has proved unreliable in certain areas.
It has only been in more recent years that the adoption of IT has noticeably increased. A 2003 National Agricultural Statistics Service- U.S. Department of Agriculture (NASS-USDA) report showed that 58% of U.S. farm households had access to a computer whereas in 1997 only 38% had access. The same report also stated that internet access of farm households was up from 43% in 2001 to 48% in 2003.
Todays farmer is using IT to his/her advantage, increased up take has resulted in increased profits with decreased work time. Infact its become apparent that the average farmer can get as much done by 9am now as in a full day in the post-war 1940's (Becherer, 1999).
Applications of E-farming
The applications of e-farming go far beyond that of just utilizing a computer to manage information. Many technologies are currently present regarding the application of e-farming. These include the utilization of the internet in conducting business and gathering information, harnessing positioning system technology to manage arable property and applying automation to processing activities.
Information management is a key business benefit of e-farming. The collection and analysis of data and information to produce knowledge aids to competitive advantage. This is shown in the recent 2003 NASS-USDA report stating that the U.S. average for the use of computers for business by farms with sales over $250,000 was 67%, in contrast to 20% for farms with sales less than $10,000 (Doye, 2004, p762). If judging by these results, one would assume e-farming is more present in farms showing signs of success.
With the increasing demand for specialist farming IT information systems, firms have emerged specializing in meeting this need. John Deere is a company that has seen this opportunity and addressed it, with massive success world-wide. John Deere has focused on supplying solutions for both information management and physical operations on farms, these come under John Deeres "technology support package" for farmers and large scale contractors called Agriculture Management Solutions (AMS).
"AMS is designed to provide customers with the ability to collect, interpret, distribute and apply such information on farms, resulting in improved financial returns". This system is a total package for farmers. It links data obtained through GPS positioning technology to FieldDoc which automatically records and documents all data, and this can be imported and analyzed using John Deere's specific desktop computer software JOffice (Hempstead, 2003, p50). It is specialized IS management systems like these that best define the advantages that can be obtained through e-farming.
The inclusion of the internet as an IT stradegy in farming is also proving a valuable management tool. The use of the internet in farming is adding a new dimension to how farming products are sold. In a study of U.S.farm households in 2003, 48% of farms had access to the internet and from these 24% used the internet as a management tool with 98% reporting information gathering as the dominant use (Doye, 2004, p763) A number of farm equipment dealers use a "click and mortar" or completely virtual approach in conducting business. "MachineFinder-dot-com" is a company sponsored site whereby famers can sell and buy farm machinery world-wide, with there being over 15,000 registered members (Becherer, 1999).
Another example of how the application of the internet benefits farmers can be seen in the VantagePoint network, acting as "a kind of silo in cyberspace" (Becherer, 1999). It is a service that allows farmers to collect, store and reference a full array of data about their farming operation, acting as an internet based data-warehouse. VantagePoint functions as a server and acts as an interface to organize and present data, with members also being able to view aggregated data from neighboring locations. This illustrates the act of transforming information to knowledge. Verified knowledge of the industry helps farmers make better informed decisions and aids to increasing competitive advantage.
Essentially farming occurs in a global market, and the internet provides a means of interaction within the market. In 1999 it was stated that "roughly one fourth of farm receipts today come from overseas sales" (Becherer, 1999), and this has greatly come as a result of the increasing adoption of the internet in facilitating transactions.
Positioning system technology is becoming more popular among more hi-tech and commercial farming operations. The most widely used position sensor that is used in practice is satellite based Global Positioning System (GPS) technology (Stombaugh, Shearer, 2000, p6). Farms specializing in growing crops are most benefited my the use of such technology, and even using basic GPS equipment can obtain position information to within 100 meters of an actual position. Using Differential GPS (DGPS), farmers can obtain positioning information to reach a position accuracy of about 1 meter, however, this comes with a subscription fee. For even more accurate information required for speacilised farming applications, Real-Time Kinematic (RTK) GPS can get to with 1cm of the actual position (Stombaugh, Shearer, 2000, p6). The advantages of having a positioning system being a farmer is the ability to locate and observe farm assets without having to be out in the field. Thus as a result, farmers can obtain information more efficiently and make decisions based on easily accessible findings.
An example of the application of satellite positioning systems in farming can be seen in John Deere's implementation of the "StarFire" system. It uses GPS technology linked with electronics to provide steering assistance to mobile machinery such as crawler tractors and combine harvesters (Hempstead, 2003, p50). This enhances timeliness, productivity and efficiency as well as "improving the accuracy of key operations such as spraying and fertilizer spreading" (Hempstead, 2003, p50).
Advantages and Potential Disadvantages
The advantages of electronic farming go far beyond just "making things easier". More so, e-farming adds value to assets and makes operation and transaction activities more constructive.
Information management through the use of IT (PC's, Internet and specialized information management systems) makes farmers more informed and provides knowledge which can be utilized in making imperative business decisions.
IT implemented in operations such as the use of positioning technology incorporated with electronic machinery lessens the requirement for human employment. This decreases costs as well as cuts out the "operator fatigue" syndrome, not leading to decreasing productivity as the working day progresses (Hempstead, 2003, p50).
The advantages of using the internet can also prove a positive feature of e-farming. Not only for collecting relevant business information, the internet can provide a hub for farmers to sell and purchase goods and machinery. This decreases transaction costs by cutting out supply chain components and can offer farmers access to a broader market than what they might normally expect at the local farmers stockyard sale.
Largely, e-farming presents only advantages in terms of strengthening a farming operations competitive advantage. However there is one general obstacle proving to be disadvantageous in relation to applying e-farming initiatives – user resistance. A proportion of farmers can arguably be seen as having more traditional and idealistic work ethics, i.e., having a "hard days work" approach to conducting operations. Consequently, farmers have a poor technology knowledge base and are resistant to change. As a result, farmers "move with the times" using other non IT related methods such as using hybrid seeds and genetically improved cropping strategies – not requiring any new management skills. In a study by Hoag, Ascough, and Frasier, it was found that "difficulty to learn was a significant obstacle to computer adoption" in relation to farmers (Doye, 2004). This leads to farmers requiring new skills and in turn high learning costs are incurred.
E-farming in New Zealand
New Zealand is an agriculturally focused country, and the farming sector has only increased in value over time. As a percentage of the country's Gross Domestic Product (GDP), the agriculture sector has increased from being about 14% in 1986-1987 to 16.6% percent in 1999-2000 and has continued to increase (Lambie, 2005). Aiding to the rise and success of the sector has been the implementation of e-farming.
The Honorary Paul Swain, whose parliamentary responsibilities for New Zealand include being the associate minister of information technology, stated that New Zealand is one of the global leaders for the implementation of e-farming applications.
In terms of New Zealand farmers using the internet as an e-farming strategy, the opportunities are all there. Companies like Fonterra and Alliance have been providing historical trend information and "day to day farm production information" to farmers on-line for a considerable time (Swain, 2002).
Because the agriculture sector in such an important part of New Zealand's economy, the government has been supplying tens of millions of dollars in providing broadband internet services to rural regions and surrounding schools (Swain, 2002). This promotes the use of e-farming initiatives and is in turn establishing the farmers of tomorrow to be more technologically savvy than the farmers of today.
The Future of E-farming
The direction e-farming is heading is clear - an escalating increase in adoption resulting in more hi-tech farms. As stated earlier the acceptance and adoption of e-farming initiatives has shown to be increasing as time progresses. Farming households have increasing access to computers and internet access, and the range of e-farming products available is increasing as shown by the initiatives of John Deere.
The increasing amount of IT education is also positively affecting the impact e-farming is having in the farming sector. As new educated farmers emerge with the knowledge and drive to implement IT into their farming operation and transaction methods, e-farming will also develop. In fact, farmers cannot afford to be left behind and lose out on the competitive advantages that can be gained through e-farming. As bigger more commercial farming operations fully utilize e-farming initiatives, the only way more local farming households can compete will be to jump on the bandwagon.
The only factor stalling the current future development of e-farming strategies is the user resistance of a small number of established traditional farms. However, even these groups are feeling the pressure to move with the times as to not be left behind.
The future of e-farming is confidently clear. Farmers must develop the employment of IT initiatives, and proof of that is shown by increasing adoption rates to technology illustrated in studies presented earlier. It will not be too long before the use of IT in conducting business operations and transactions is equally adept as in other industries.
Recommendations
However there were technology strategies that were not discussed and it is this author's recommendation that they be implemented and developed as e-farming initiatives.
The integration of wireless network technology should be applied as a means of coordination of operations within the working area. More notably, employing a Wireless Area Network (WAN) or utilizing the Global Area Network (GAN) to aid voice and data communication among farm employees is recommended.
The integration of WAN technologies would more effectively facilitate the sharing of information among staff, and thus build a more informed employee base. Communication through a WAN can be conducted via the use of Personal Digital Assistant (PDA) mobile devices. Data regarding work activities can be immediately transferred to a shared database and changes in daily processes can be immediately notified to workers in the field.
The reason a WAN would prove immediately useful in some instances is the inability to access other networks as some rural locations are out of range. If the rural area is generally flat then Line of Sight (LOS) wireless technology can be utilized. If the rural area is hilly in nature, then non-Line of Sight (NLOS) wireless technology can be utilized.
References:
All farming is global: Attuned, technologically, environmentally, aware agriculture sector. H W Becherer. Vital Speeches of the Day. New York: Jul 1, 1999.Vol.65, Iss. 18; pg. 568, 3 pgs
John Deere's system. Anonymous. Appropriate Technology. Hemel Hempstead: Mar 2003.Vol.30, Iss. 1; pg. 50
The use of electronic technology in teaching farm record keeping. Damona Doye. American Journal of Agricultural Economics. Malden: Aug 2004.Vol.86, Iss. 3; pg. 762
E-farming – A Platform for Business Success. Hon Paul Swain. http://www.beehive.govt.nz/ViewDocument.aspx?DocumentID=14289. 14/06/2002.
Miracle Down Under: How New Zealand Farmers Prosper without Subsidies of Protection. Thomas Lambie. Center for trade policy studies: Free Trade Bulletin. Washington D.C. February 2005. Iss. 16.
Equipment technologies for precision agriculture .T S Stombaugh, S Shearer. Journal of Soil and Water Conservation. Ankeny: First Quarter 2000.Vol.55, Iss. 1; pg. 6, 6 pgs
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