Innovation and entrepreneurship in irrigated agriculture in the central U.S. Kate Gibson & Nick Brozović 6 February 2018
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1 Innovation and entrepreneurship in irrigated agriculture in the central U.S. Kate Gibson & Nick Brozović 6 February 2018
2 Commodity agriculture in the High Plains Large-scale operations (800 ha) Sprinkler/center-pivot irrigation Groundwater and surface water irrigation Nebraska: most irrigated area in U.S. (3.4 million ha) High Plains Aquifer Covers 450,000 km 2 100,000 groundwater wells in Nebraska alone High Plains Aquifer Nebraska
3 Commodity agriculture in the High Plains Major crops are maize and soybean Maize yields of 13 t/ha with records approaching 20 t/ha Soybean yields of 4 t/ha Top livestock producing states Grain produced for cattle feed
4 Who are the players? Public sector Private sector Federal government Local government State government Universities and extension services Farmers Agronomists and consultants Irrigation dealers Marketers Equipment manufacturers Ag. technology companies Others
5 Business context Low commodity prices On-farm debt Intergenerational wealth transfer Explosion of agricultural technology and investment Increasing interest in conservation
6 Regulatory context Agriculture Water Resources/Irrigation Federal Quality and quantity State Local
7 The role of data Increasing availability and collection of data Regulatory requirements and equipment technology Technology plays a key role in achieving goals Managing farm inputs to increase profits Managing farm inputs to conserve natural resources
8 Social networks & technology adoption Numerous entities involved in technology adoption Private sector Grassroots farmer groups (peer-to-peer) Agricultural technology companies (peer-to-peer) Environmental NGOs Public Local natural resources districts Federal natural resources districts
9 Farmers Business Network Subscription-based, members only platform Users share seed, fertilizer, and pesticide data Data storage and analysis Building a marketplace product
10 Data to benchmark production Data benchmarking as a tool to impact decision making Social incentive Benchmarking for regulatory purposes and private benefit Field to Market Water for Food
11 Field-to-Market Framework for sustainability measurement Corporation partnership Benchmarking performance for sustainability
12 Nebraska farm database 150,000 field-years of agricultural production data Crop type, irrigation amount, fertilizer amount, tillage, irrigation scheduling method Collected by Natural Resources Districts and University of Nebraska researchers
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18 Barriers to technology adoption Increasing availability of technology but often low adoption in commodity agriculture Government efforts Cost-share Why?
19 Business models Pain point Cost What s the value proposition and return on investment? Time? (installation, maintenance) What to do with the data? Risk
20 Soil moisture probes Soil moisture management known to improve yields Numerous companies in the space Low adoption rates - why?
21 Soil moisture sensor business models Sensoterra technology only Key activities: Provide low-cost, working sensors; low-power system; wireless data collection Value proposition: Low-cost sensor, free data, varying size/soil depths, push data notifications Customer relationship: Self-service and automated services Channels: Online platforms, straight from company Revenue streams: Soil moisture sensor, sensor connectivity subscription, product warranty
22 Soil moisture sensor business models AquaSpy technology and customer support Key activities: Provide working sensors, help producers use sensors and data, collecting data from fields Value proposition: Collect field moisture data and use it to make informed irrigation decisions; receive recommendations from data analysis experts Customer relationship: Personal assistance, user community Channels: Local irrigation and implement dealers Revenue streams: Manufacture and distribute soil moisture probes, yield efficiency score, subscription to AgSpy
23 Soil moisture sensor business models CropMetrics technology and extensive customer support Key activities: Provide sensors, assist with sensor installation and data analysis, collect data from fields, provide variable rate irrigation technology Value proposition: All-in-one source for soil moisture and irrigation management, data management, pivot control Customer relationship: Personal assistance, local agronomy support (irrigation scheduling, data management) Channels: Local dealers, agronomists/crop consultants Revenue streams: Distribute soil moisture probes, variable rate irrigation optimization, Virtual Optimizer, Virtual Agronomist
24 Summary Investment in agricultural technology is expanding Adoption rates are still low Disconnect between technology and producer needs Potential for peer-to-peer learning to drive increased profits and improved resource management
25 Thank you! Nick Brozović, Kate Gibson,
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