Dynamics of Data in Agriculture Highlights
Dynamics of Data in Agriculture Highlights
Highlights from Stratus Ag Research 2023 Report
Field Data Management Software: The backbone of ag tech adoption - Stratus Ag Research
To download the Stratus Ag Research Dynamics of Data in Agriculture Report Highlights document, check out the above link.
Since 2016, Stratus Ag Research has done an in-depth survey of farmers across North America identifying important trends, delivering keen insights and empowering agribusinesses to inform their strategy and tactical efforts surrounding digital initiatives. Given the length of time they have done the survey work, they deliver an unparalleled level of insights into what is driving and has driven farmer utilization and adoption of digital and precision tools.
I was able to preview some of the 2023 results and wanted to share a few of my favorite take aways from the research.
The data I reviewed was specifically from the United States survey. The survey was completed by 841 commercial crop farmers in the United States. Farm operations needed to have planted a minimum of 1,000 total crop acres in 2023, with a specific threshold of 100 specialty crop acres for those in California. The average farm size for survey participants was 2,680 total crop acres.
Below are five takeaways from my preview of the 2023 Survey Data.
Index of Key Takeaways
Retail Influence, or Lack Thereof?
Which Software Dominates the Market?
What is Hindering Adoption According to Farmers?
What are the most important features to farmers in Farm Management Software?
Perception of Emerging Trends: Precision Spraying, AI and Autonomous Equipment
Final Thoughts
Other Reading from Stratus Ag Research and Upstream Ag Insights
1. Retail Influence or Lack Thereof?
When it comes to informing farmers crop protection, and most crop input decisions, retails are the most influential group of individuals.
Survey data from Stratus Ag Research in 2022 (USA survey) illustrated that when it comes to crop protection decisions, almost 92% of farmers say they consulted with their main retailer to inform their crop protection purchase decisions:
However, when it comes to farmers having their crop input retailer work with them to analyze, interpret, and make recommendations based on their farm’s agronomic data— only 19% of software users said yes. A declining trend from 2021 when it was 25%.
The other aspect of this is that Stratus results suggest farmers need and want more support surrounding software.
Farmers need support. Even among the most frequently used field data management software platforms, fewer than 15% of farmers indicated they know a lot about the software.
There are still major gaps in support for farm software users and farmers say they see services such as troubleshooting, software updates, training on new features, and equipment integration as useful, but they are not receiving adequate assistance.
Couple these two insights together from the survey data and it illustrates the opportunity for retails to bridge that gap in support of farmers. Especially considering another takeaway— farmers DO NOT see the retail as their preferred organization to work with surrounding software:
Ample opportunity for retails to evolve their business.
2. Which Software Dominates the Market?
Within the survey data there are thousands of ways to slice and dice the numbers up to understand which products have a strong hold where and in what specific feature and functionality, but they also offer a macro view where we can get a good idea of which softwares are dominating the United States market for farmers:
Unsurprisingly, John Deere Operations Centre and Climate FieldView dominate usage, followed by AFS Connect (CNH), Ag Leader and Trimble Ag Software— all in-cab, equipment driven software.
The most prominent, non-equipment related software besides Climate FieldView? Bushel Farm.
3. What is Hindering Adoption According to Farmers?
It’s no surprise farmers, like all of us, want easy to use software. It’s interesting though to dig into what is holding up adoption:
The top five are notable:
Status Quo bias — Status quo bias is defined as the preference for maintaining one’s current situation and opposing actions that may change the state of affairs. There are a number of ways to mitigate status quo bias, but specific to farmers it is important to illustrate the shortcomings and what they are missing out on because of their current method rather than simply highlighting the benefits of a new method, which is a typical approach.
Cost and ROI — In the February 11th Edition of Upstream Ag Professional I highlighted that many farms simply do not have a level of cash flow required to invest in new technology:
If we use the 2 million farms number and look at what the survey defines as “large farms,” we see that only about 140,000 farms in the United States (7% of 2 million) have $500,000 or more in revenue.
For context, a $500,000 revenue farm that grows average corn yields (~180 bu/ac) would only be farming around 620 acres.
Even at the $500,000 cut-off point, it’s questionable whether farms consistently generate enough to invest in new technologies, such as precision spraying or planting equipment.
A cash-strapped farmer is unlikely to invest in new technologies or sustainable solutions.
Cost and ROI are still a very real hinderance to utilization.
Related to #2, with some nuance, adoption will occur in conjunction with the equipment upgrade cycles. As an aside, this also illustrates why companies like AGCO and John Deere emphasize retrofit capabilities in their other agtech segments.
Lack Information — This reinforces the commentary in the first takeaway highlighted — many organizations can do a better job of increasing the knowledge density, training options and focus of their staff on enabling farmers to use software.
Now, I understand the apprehension and the need for all efforts to tie back to a return for the organization, but the question in my mind that should be answered by every ag company is this:
In 10 years, do we see software becoming more prominently used by farmers?
And then orchestrate a view of what that means for their business.
If you answer “no” to that question, then do not invest anymore time. If you answer yes to that question and you think there are negative repercussions for your business, it becomes obvious that there is a need to better integrate training, systems, business models and build out an enhanced focus to how you support farmers in using your software, or partner with someone else to do so.
Another slide of data reinforces the points above in that non-users want help:
4. What are the most important features to farmers in Farm Management Software?
The feature list of most farm management software is immense. What do farmers deem to be the most valuable?
Yield Mapping
Mobile Accessibility
In-cab software access
Variable Rate Capabilities (Prescription creation)
5. Perception of Emerging Trends: Precision Spraying, AI and Autonomous Equipment
Precision spraying, Artificial Intelligence and Autonomous Equipment are three of the most commonly referenced “new” things in agriculture. How are farmers perceiving them?
For me, artificial intelligence is more of an enabling technology, both of Precision Spraying and Autonomy, but also software so I don’t want to read too much into that aspect because I think a more general AI perception influences the answer, rather than a specific understanding of why it will, or will not benefit their farm operation.
It is notable that autonomous equipment has a lot of apprehension— feeling a loss of control, a lack of trust, and missing out on the freedom to drive a tractor all contribute. This data illustrates the opportunity for equipment companies to continue to frame autonomy in a way that alleviates trust concerns and establish a way for farmers to always feel “in control” (eg: maintain the cab, enable remote usage), which in my conversations with equipment companies is constantly top of mind for them already.
Notably, Precision Spraying has a lot of openness— only 7% of farmers said they are “very apprehensive.” Over 50% of farmers have some level of enthusiasm about the technology and for those on the fence, my suspicion is they need more exposure to the technology to nudge them in a more optimistic direction, which will happen over time. I think for crop protection manufacturers and retailers, this is very illustrative that farmers are bullish on precision spraying capabilities and there is a need to lean in.
Final Thoughts
Stratus Ag Research has constantly delivered high value and actionable insights through their survey work and the 2023 Dynamics of Data in Agriculture is no different.
I barely scratched the surface of the data and insights that are available within the report and encourage you to download the Dynamics in Data Highlights Report from Stratus or to reach out directly to Krista Maclean (kristamaclean@stratusresearch.com).
The full report provides an in-depth analysis of how farmers use software on their farms today and how that might change in the future. The study answers questions such as:
To what extent are farmers using field data management software?
What software brands are farmers using?
Which software features are farmers using, which ones are most important in the operation and management of their farm and how satisfied are they with each feature they are using today?
How interested are farmers in features they are not using?
What factors are driving decisions as to which software brand to use?
What are the strengths and weaknesses of each field data management software
brand?
What role do third parties play in the use of software on the farm?
How satisfied are farmers with the software brand they are using?
How likely are they to recommend the brand they are using to other farmers?
How effective is your advertising?
How effective are your direct contact activities?