Revisiting Agriculture 3.0

Some of you may remember an article I authored a year or so ago entitled “Get Ready For Agriculture 3.0.” I have been writing various articles in this industry for nearly 20 years, and I can unequivocally say that article elicited more comments (both positive and negative) than anything I have ever written. Change is always emotional, and the transition from the agriculture we all knew for most of our careers and the phase that started over the past decade or so (which I have dubbed Agriculture 3.0) is more emotional than most.

In trying to understand why this is such a difficult transition, I’ve become convinced the answer is technology convergence. Before I explain how this applies to agriculture, let me define the concept.

Remember back in the day (about 10 years ago) how we used to have a simple cell phone and a computer in our office? If you were “out there,” you also had a Palm Pilot or some other PDA to store your contacts. None of these tools talked to one another or really integrated much in any way. If you wanted to call somebody, you got out your PDA, looked up the number and keyed it in on your cell phone. You could export your contacts periodically from your computer to your Palm Pilot by connecting a cable.

Fast forward to today. Our smartphone allows us to get a name, surf the Web and make a call. It is synched instantly and wirelessly with our iPad and desktop via the cloud. The technology has converged, and now these three tools are connected with one another.

The challenge, which I found out in spades this week when I tried to view a Word document on my new iPad, is that Apple (iPad, iPhone), Google (Android) and Microsoft (Windows, Surface) are locked in an epic battle to see whose proprietary platform will rule the universe (with little interest in seamlessly connecting with their rivals).

There are lots of subplots and intrigue in this battle. It’s ironic, for example, to see the Apple folks who complained bitterly for years about how Microsoft was trying to leverage its huge “installed base” of Windows users to block others now vigorously pursue the “App Store” in an attempt to do precisely the same thing. It’s sad, too, to see companies like Research In Motion — that developed the highly successful Blackberry — see its fortunes decline dramatically when it was unable to offer the complete bundle and interoperability that customers demand.

Convergence In Agriculture

So what does this have to do with Agriculture 3.0? Well, the exact same technology convergence is happening in agriculture! So what technologies are “converging” in Agri­culture 3.0? In my view, the formerly distinct areas of crop nutrition, crop protection, precision agriculture and seeds are actively converging (Figure 1.)

While there has been slow convergence in agriculture going on for a while, the explosion of the seed treatment business is accelerating the trend dramatically. If a company takes a proprietary seed, coats it with a proprietary crop nutrition and crop protection package and applies it using proprietary application equipment which can leverage its database on the performance of its hybrids at various planting depths or in various soil types, what business is it in?

The answer, of course, is that this company is in all these businesses simultaneously, in exactly the same way that Apple or Microsoft are in the phone, tablet, PC and software businesses (and the desire to control the platform is just as strong).

What are some of the “hot spots” in this convergence play?

  • Seed Treatment — where all four disciplines can be brought to bear.
  • Precision Decisions — any area I refer to as Dynamic Decision Making (DDM), which involves integrating disparate sources of data simultaneously to optimize agronomic performance.
  • Micronutrition — understanding at a molecular level what drives nutrient availability and delivering appropriate solutions.
  • Cloud Computing — the ability to seamlessly integrate and store data in a single secure, remote location that provides for data security and optimal decision-making.
  • Microfarming — the ability to leverage highly accurate GPS tools to reduce precision agriculture to a strip within a field where optimum nutrition and plant health solutions are applied.

Finally, here are a few logical questions for thought based on this transition:

  • Will proprietary or “open source” systems predominate in agriculture?
  • Any guesses on who the aggie “Microsoft” or “Apple” are?
  • Which companies will become agriculture’s version of “Blackberry,” with great technology and arguably superior solutions in a narrow niche who get passed by because they cannot offer the integrated solutions the customers seek?
  • What role will the increasing powerful ag channel players play given their strategic position as the trusted advisor to many of the customers?
  • What kind of acquisitions will the larger players need to make to “complete their portfolio?”
  • How do earlier stage technology companies need to position themselves to be relevant and valuable in this emerging paradigm?

In coming months, we will be examining the impact of these technology convergence on the four areas outlined above as well as try and handicap the race to answer the questions above. While it is unclear how all this will play out, what is absolutely certain is that the strategic insight required of any senior manager in the ag sector has never been higher.

Leave a Reply

One comment on “Revisiting Agriculture 3.0

  1. […] Some writers are using the term ‘Agriculture 3.0’ (which refers to a future agriculture), to represent different versions of industrial agriculture (agriculture 2.0). Its use is already falling into the same problem that ‘sustainability’ fell into (see blog post). The term ‘Agriculture 3.0′ was launched (for me anyway) by Steffen Schneider from the Institute for Mindful Agriculture at a conference I attended in Wisconsin. Unfortunately, one of my favourite websites (Ashoka changemakers, which I write about further down) speaks about agriculture 3.0 from an industrial ag perspective, which to me, is misuse of the term. It happens here too. […]

State of the Industry Stories

Fertilizer Tender close-up
MicronutrientsHow Micronutrients Fit Into 2017 Fertility Plans
January 10, 2017
Where do micronutrients stand going forward in fertility plans? For one thing, Tim Mundorf, Field Representative with Midwest Laboratories, says Read More
Fertilizer application
State of the IndustryCautious Optimism On Fertilizer In 2017
January 10, 2017
What kind of fertilizer rates are growers and retailers looking at in 2017 and beyond? According to stakeholders CropLife magazine Read More
Asmus Farm Supply crop protection products in storage
State of the IndustryCrop Protection Products Market: Complexity Begets Opportunity
January 10, 2017
While other key market segments in agriculture continue to see tumultuous shifts in sales volumes going forward (large equipment sales are Read More
Pioneer corn seed in storage
Special ReportsState Of The Seed Industry: Better Later Than Never
January 3, 2017
Traditionally, the majority of the nation’s grower-customers made their seed planting decisions in the late fall. Normally, when folks attended Read More
Trending Articles
PrecisionAg Vision Conference
Precision AgPrecisionAg® Vision Conference: Focused on the Future
June 13, 2017
PrecisionAg® is pleased to announce the return of its PrecisionAg Vision Conference, October 10-12, 2017. Based on overwhelmingly positive response Read More
Redbanded-stinkbug-on-soybean-Photo-credit-Thomas-County-Ag
Crop InputsExperts: Mild Winter, Early Planting Will Increase Soybean Insect Threat
June 12, 2017
Higher than average temperatures this past winter affected much of the nation, especially the South and Midwest. The National Centers Read More
Eric SfiligojMonsanto ‘Picks Its Battles’ by Nixing Deere Deal
May 23, 2017
Having been in the trade journalism game since the mid-1980s, I remember several watershed moments during my career. One of Read More
Migrant farm workers
LegislationTrump: Immigration Crackdown Won’t Impact U.S. Agriculture
May 16, 2017
President Donald Trump said he would seek to keep his tough immigration enforcement policies from harming the U.S. farm industry Read More
AGCO Ratliff featured
Eric SfiligojRemembering Robert Ratliff
May 15, 2017
With all the fast-paced happenings in agriculture this spring, with multiple mergers in the works and planting season in full Read More
Case sprayer nozzle closeup
EquipmentSpray Application: A Nozzle Renaissance
May 2, 2017
If you had asked four-decade ag veteran Mark Bartel, President of Wilger Inc., just a few years ago what lay Read More
Latest News
Engenia soybeans
Crop InputsBASF: ‘Closely Monitoring’ Dicamba Situatio…
June 22, 2017
BASF, whose Engenia herbicide is the target of more than 200 drift complaints in Arkansas, emailed the following statement to Read More
ManagementConsolidation Update
June 22, 2017
Editors Paul Schrimpf and Eric Sfiligoj discuss progress on manufacturer consolidation, and another big move for Midwest cooperative Central Valley Read More
Palmer pigweed seedhead in cotton
Crop InputsThreat of Dicamba Ban Looms in Arkansas
June 22, 2017
The Arkansas State Plant Board has rejected a proposed ban on the use of dicamba herbicide, but a procedural error Read More
Potash Agrium
Crop InputsAgrium-PotashCorp to become Nutrien upon Merger Complet…
June 21, 2017
Potash Corporation of Saskatchewan Inc. and Agrium Inc. have announced today that once the anticipated merger transaction closes, the new Read More
Crop InputsMidwestern BioAg Hosts TerraNu Fertilizer Plant Opening…
June 20, 2017
Last Friday, Midwestern BioAg was joined by over 80 local farmers, media and staff to celebrate the grand opening of Read More
Soybean Field
Industry NewsAligned Ag Distributors Names New President
June 19, 2017
Aligned Ag Distributors LLC announced this morning the appointment of Mary Tolke to the position of President/CEO, effective July 1. Read More
ManagementPlotting Corn, AGCO/Asmark’s Applicator Training Center…
June 15, 2017
Editors Paul Schrimpf and Eric Sfiligoj talk about their recent visits to Columbus, OH, and Bloomington, IL, along with an Read More
Seed/BiotechDow AgroSciences Announces Launch of Enlist Corn for 20…
June 14, 2017
Enlist corn will be commercially available in the U.S. for the 2018 growing season. Dow AgroSciences announced the launch today Read More
ASMARK AGCO Applicator Training Center
EmployeesAsmark, AGCO Open Training Center for Beginning Applica…
June 13, 2017
AGCO Corp. and the Asmark Institute have opened a new Applicator Training Center, created in a collaboration between the two Read More
Power to Do More Contest Winners
HerbicidesDow AgroSciences Announces Three Winners in Power to Do…
June 13, 2017
Thousands of votes have been cast and three farmers have been awarded the power to do more with a $10,000 Read More
Frogeye leaf spot
FungicidesStrobilurin-resistant Frogeye Leaf Spot Threat Looms wi…
June 13, 2017
Heavy spring rainfall throughout the South and Midwest delayed planting and created the perfect environment for diseases like frogeye leaf Read More
PrecisionAg Vision Conference
Precision AgPrecisionAg® Vision Conference: Focused on the Future
June 13, 2017
PrecisionAg® is pleased to announce the return of its PrecisionAg Vision Conference, October 10-12, 2017. Based on overwhelmingly positive response Read More
CHS St. Paul, MN fertilizer terminal
LegislationICGA Praises President Trump’s Remarks on Waterwa…
June 12, 2017
Illinois Corn Growers Association President Justin Durdan, a farmer from Utica, issued the following statement regarding President Donald Trump’s comments Read More
Wheat Growers
UncategorizedWheat Growers Names Tracy Linbo as Senior Vice Presiden…
June 12, 2017
Wheat Growers has hired Tracy Linbo as Senior Vice President of Agronomy. Linbo joins Wheat Growers after having served 10 Read More
EquipmentAgTech Summit Aiming High for Modern Farming Solutions
June 12, 2017
THRIVE AgTech, in partnership with SVG Partners and Forbes, is hosting the third annual Forbes AgTech Summit June 28-29 in Read More
Central Valley Ag Randolph, NE
Precision AgLand O’Lakes Invests in EFC Systems
June 12, 2017
Land O’Lakes, Inc. has made a minority equity investment in EFC Systems, Inc., an ERP (Enterprise Resource Planning) and precision Read More
BRANDT
Crop InputsBRANDT Products Approved for Use with New Cropping Syst…
June 12, 2017
BRANDT, a leading manufacturer of specialty products for the agriculture and turf markets, has announced that 11 BRANDT formulations have Read More
Redbanded-stinkbug-on-soybean-Photo-credit-Thomas-County-Ag
Crop InputsExperts: Mild Winter, Early Planting Will Increase Soyb…
June 12, 2017
Higher than average temperatures this past winter affected much of the nation, especially the South and Midwest. The National Centers Read More