Evaluating the Precision Agtech Sector in 2022
October 26, 2022 Although it is a seasoned veteran in terms of longevity — being identified as a “thing” at least since the mid-1990s – the precision agtech category has seemingly been stuck in place for many years, now. In fact, according to the most recent CropLife® magazine/Purdue University Precision Surveys, overall adoption of the category among ag retailers has been hovering around the 50% to 60% mark for several years now. Furthermore, according to the most recent CropLife 100 survey of the nation’s top ag retailers, approximately 90% of all precision ag products/services sales are concentrated among only 10 ag retailers.
Now, in truth, many of the purveyors of this technology are some of the largest companies within the agricultural world. Indeed, according to the 2021 CropLife 100 survey, the five leading ag retailers in precision agriculture revenues were also five of the most successful companies in the nation in terms of overall sales. This included CHS, Wilbur-Ellis, Helena Agri-Enterprises, GROWMARK, and Nutrien Ag Solutions.
Yet, according to preliminary data from the 2022 CropLife 100 survey, the precision agtech sector is still looking for some positive sales growth. According to this year’s survey respondents, their precision agtech sales were $798.5 million in 2022, down $10.5 million from the 2021 figure of $809 million. As if to confirm this market “flatness,” better than 50% of 2022 CropLife 100 survey respondents indicated that their precision agtech sales/services showed “no change” from their 2021 percentages.
In their annual look at the precision ag marketplace, Purdue authors Bruce Erickson and James Lowenburg-Deboer acknowledged this sluggish growth curve for the category. But they did note some significant gains taking place in certain areas of the business.
“Over the years, there has been an ever-changing mix in precision products and services dealers offer to their customers,” wrote Erickson and Lowenburg-Deboer in their survey analysis from CropLife’s July 2022 edition. “Following a decade of very slow growth, a big upswing in many precision offerings occurred in the decade from around 2011 to 2020.” This included grid/zone soil sampling, yield monitor/other data analysis, satellite/aerial imagery, and grid/zone plant tissue sampling.
Drones Demand
Another segment of the precision agtech business that bears watching is drones. Also known as Unmanned Aerial Vehicles (UAVs), the segment burst upon the agricultural scene back in 2015. At that time, numerous start-up companies entered the field, anticipating “big things” for fleets of unmanned aircraft able to “selectively spray or apply” products to crop fields.
However, growth for the sector was significantly slowed as manufacturers and potential customers awaited operating instructions and regulations from the Federal Aviation Administration (FAA). These were finally published in mid-2016, with final operating guidance in place by the end of that year.
Since then, the percentage of drones being used by ag retailers and their grower-customers has steadily increased. In fact, according to the 2022 CropLife/Purdue Precision Survey, the percentage of ag retailers offering drones has grown from 19% in 2015 to just shy of 60% today. It is estimated that this figure will continue upward between now and 2025, projected to reach 64% to 65% by that time.
“Drones offer users a unique experience in application,” said Adam Langer, Chief Pilot at Rantizo, speaking at the 2022 Midwest AG Industries Exposition (MAGIE) this past August. “The capability to apply to almost any spot in the field at any time during the growing season is an invaluable tool for ag retailers and growers to be able to use. And products like ours can now make this happen.”
Wilbur-Ellis recently partnered with Guardian Ag to develop a new drone — a fully electric vertical take-off and landing (eVTOL) aircraft system that it claims can safely and securely deliver precision application of crop protection in a fraction of the time and cost.
And more such systems are on the way. In fact, Wilbur-Ellis recently partnered with Guardian Ag to develop a new drone — a fully electric vertical take-off and landing (eVTOL) aircraft system that it claims can safely and securely deliver precision application of crop protection in a fraction of the time and cost. This autonomous aircraft can carry multi-hundred-pound payloads and address a wide range of application spray volumes and application needs for growers. It features four six-foot propellers and an overall 15-foot aircraft width. In operation, the eVTOL system efficiently covers 40 acres per hour of full-field crop protection to the grower. The unit utilizes industry standard nozzles, pressure, droplet sizes, and application volumes.
“EVTOL systems allow Wilbur-Ellis to give customers more options for precise application to acreage, helping growers make the best decisions about when and how they treat their crops,” says Mark Ripato, President of Wilbur-Ellis Agribusiness. “It’s particularly exciting to expand our already successful aerial business with a technology that is new to the market and one that I feel will make a real difference for our growers’ crop success and give them a positive return-on-the-investment with us.”
According to Wilbur-Ellis, Guardian Ag’s regulatory approval process is well under way. The company expects commercialization and availability to users to occur in 2023.
Autonomous Vehicles Up-and-Coming
Besides the expected increase in drones use, another sector of precision agtech that is expected to significantly grow in the coming years is autonomous vehicles. In fact, according to the 2022 CropLife 100 survey, more than 65% of respondents anticipate this segment of the precision agtech business for them will grow “substantially over the next few years.”
In late August at the 2022 Farm Progress Show, Case IH and Raven Industries introduced the agriculture industry’s first autonomous spreader: The Case IH Trident 5550 applicator with Raven Autonomy. This unit combines driverless technology with an agronomically designed spreading platform for a flexible autonomous solution. The technology stack is powered by guidance and steering, propulsion control, perception, and path planning software developed by Raven.
An example of an autonomous vehicle is this OMNiPower 3200 spreader from Raven Industries. This unit was on display at the recent MAGIE show.
“This is a significant milestone in our accelerated product development efforts between Case IH and Raven, highlighting our intense collaboration and robust product innovation following CNH Industrial’s acquisition of Raven in late 2021,” says Scott Harris, Case IH’s Global Brand President. “This is the first of many integrations that automate the established iron platforms of Case IH as we continue to craft a fully autonomous crop production cycle.”
According to Eric Shuman, General Manager at Raven, the Case IH Trident 5550 applicator with Raven Autonomy allows for one or more driverless machines in the field without an operator present in the cab, providing the flexibility of full control inside or outside the cab through the use of the company’s perception system. This utilizes a series of advanced cameras and radar system, is constantly sensing a 360-degree environment around the machine for obstacles and motion initiation while operating. With artificial intelligence, Raven’s perception controller processes the continuous stream of images, which interprets and detects obstacles. The remote operator can view the cameras through the mobile device at any time.
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