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

Liquid Fertilizer Storage tanks
State of the IndustryComplex Fertilizer Market Brings Mixed Feelings
January 5, 2016
Declining fertilizer prices and plentiful supplies should be good news for growers facing low crop prices. But they and their Read More
Asmus Farm Supply crop protection products in storage
State of the Industry2016 Crop Protection Outlook: The Guessing Game
January 4, 2016
One would naturally assume that retail sales of crop protection products in a contracted market would themselves be contracted, but Read More
Seed corn bags in storage
Special ReportsThe Outlook For Seed In 2016
January 3, 2016
Among all crop input categories going into 2016, the seed category has as many questions regarding which direction it will Read More
Wilbur-Ellis’ new fertilizer blending facility, located in Mott, ND, was designed by A.J. Sackett & Sons.
State of the IndustryBuying Intentions Survey: Retailers Taking A Prudent Approach In 2016
January 2, 2016
The CropLife® magazine Buying Intentions Survey made its debut last year to gauge current industry trends against the retailer’s plans Read More
Trending Articles
Eric SfiligojPity The Monsanto Haters
May 23, 2016
An old saying goes thus: “Be careful what you wish for. You just might get it.” Given current events, there Read More
Monsanto Luling Plant
Crop InputsReport: Bayer Eyeing Monsanto For Possible Mega-Merger
May 16, 2016
Bayer AG is exploring a potential bid for U.S. competitor Monsanto Co. in a deal that would create the world’s Read More
Aerial Drone
Precision AgA Deeper Dive Into The Future Of Precision Ag
May 9, 2016
For about two decades now, through the good and the bad times, the ups and the downs inherent in agriculture, Read More
Palmer amaranth in soybean stubble
HerbicidesWSSA: Billions In Potential Economic Losses From Uncontrolled Weeds
May 4, 2016
What losses would corn and soybean growers experience if they were forced to eliminate herbicides and other control techniques from Read More
Eric SfiligojReasons For Hope In Commodity Prices
May 2, 2016
For many months now, the doomsayers have ruled the day in agriculture. Too much supply with too little demand would Read More
Eric SfiligojMissing The Family Ties In Agriculture
April 25, 2016
By its nature, the agriculture market is cyclical. Up and down cycles come and go with a regular pattern. For Read More
Latest News
ManagementWashington Visit and Bayer/Monsanto Deal Update
May 26, 2016
Editors Paul Schrimpf and Eric Sfiligoj discusses a recent trip to DC and the latest news on the proposed pairing Read More
Fertilizer closeup in hand
Industry NewsVerdesian: Striking A Balance Between Yield & ROI
May 26, 2016
Finely tuned nutrient management plans are helping farmers throughout the U.S. improve nutrient use efficiency, increase return on investment (ROI) Read More
Crop InputsLand O’Lakes Announces Minnesota Water Quality Pa…
May 25, 2016
Governor Mark Dayton and Land O’Lakes, Inc. President and CEO Chris Policinski today announced a new public-private partnership to protect Read More
Soybean Plant closeup
Industry NewsMonsanto Rejects Bayer Bid; Open To More Talks
May 25, 2016
Monsanto Co, the world’s largest seed company, turned down Bayer AG’s $62 billion acquisition bid as “incomplete and financially inadequate” Read More
Corn close up
Crop InputsArysta LifeScience Establishes Global Headquarters In R…
May 25, 2016
Arysta LifeScience has announced plans to relocate its global headquarters from West Palm Beach, FL, to Cary, NC, over the Read More
fertilizer blending and storage, Top 100
BlendersCHS Dakota Expansion Features AGCO’s GSI InterSys…
May 25, 2016
The continued growth of precision agriculture has increased farmer use of customized fertilizer blends best-suited for their soil conditions. Several Read More
ManagementAgriculture 3.5: A Bumpy Road Ahead
May 24, 2016
You may have read my article a few years ago on Agriculture 3.0, which is a term I coined to Read More
Topcon’s X30 display with CropSpec sensors
EquipmentGPS Autosteer Systems: Product Updates From Precision A…
May 24, 2016
Throughout 2015 GPS Steering solutions continued to evolve from what was once an after-market add on, to today’s cab where Read More
Trimble TMX-2050 In-Cab Display
Eric SfiligojThe Precision Ag Revolution Continues
May 24, 2016
It’s funny how much “the first time” tends to mean to someone as they get older. I sometimes can’t recall Read More
Eric Wintemute, AMVAC
Precision AgAMVAC Ups The Ante With New Precision Ag Technology
May 24, 2016
A potentially industry-changing at-plant soil treatment system from American Vanguard Corp., or AMVAC, is coming soon to large growers in Read More
Dry and Liquid Plant
CropLife 100CropLife 100 Map
May 24, 2016
The new CropLife 100 map shows the locations of each of the headquarters of the 2015 CropLife 100 retailers. The interactive Read More
Southern States Cooperative
Corn Field
Industry NewsTiger-Sul Names Veteran Account Manager To Lead Central…
May 23, 2016
With the continuing growth of the sulphur bentonite and precision crop nutrient industry, global agriculture firm H.J. Baker has announced that Read More
Bayer sign
Industry NewsReuters: Bayer Defies Critics With $62 Billion Monsanto…
May 23, 2016
German drugs and crop chemicals group Bayer has offered to buy U.S. seeds company Monsanto for $62 billion in cash, Read More
Eric SfiligojPity The Monsanto Haters
May 23, 2016
An old saying goes thus: “Be careful what you wish for. You just might get it.” Given current events, there Read More
Industry NewsCompass Minerals Hires Industry Veteran To Lead Plant N…
May 19, 2016
Compass Minerals has hired plant nutrition industry veteran Vatren Jurin to steer the company’s portfolio expansion into specialty liquid micronutrient Read More
ASMARK Retailers LIVE! Tour 2016 Group shot The Andersons
CropLife 100The Andersons Rejects Unsolicited Proposal From HC2
May 19, 2016
The Andersons, Inc. has announced that its Board of Directors has rejected two non-binding, highly conditional, unsolicited proposals from HC2 Read More
glyphosate
Crop InputsWHO: Glyphosate ‘Unlikely’ To Cause Cancer
May 16, 2016
Via Reuters.com reporter Kate Kelland: The weed-killing pesticide glyphosate, made by Monsanto and widely used in agriculture and by gardeners, Read More