10/25/2017. How Technological Advances are Impacting Risks on the Farm. Along with New Technology Come New Risks
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1 How Technological Advances are Impacting Risks on the Farm Presented By: Cheryl L. Koch CPCU, CIC, ARM, AAI, AAM, AIM, AIS, ARP, API, AINS, ACSR, AFIS Agency Management Resource Group #IRMI2017 Along with New Technology Come New Risks We will look at: Drones Precision Farming Autonomous Vehicles and Robotics Mechanization THE DRONES ARE COMING And coverage is up in the air! 1
2 WHAT IS A DRONE? An aircraft operated without the possibility of direct human intervention from within or on the aircraft. FAA Definition By any other name Unmanned aerial vehicle (UAV) Unmanned aircraft system (UAS) Unmanned vehicle system (UVS) Unmanned Remotely operated Robotic FAA REGULATIONS As of March 21, 2017, FAA data indicates there are more than 37,000 CERTIFIED drone operators and 44,000 REGISTERED commercial drones in operation FEDERAL DRONE REGISTRY ( Operational limitations Less than 55 lbs. Maximum altitude of 400 feet VLOS Not over persons, in structures or inside vehicles Daylight operations only Remote Pilot in Command Certification and Responsibilities Aircraft Requirements Model Aircraft Exemption This Photo by Unknown Author is licensed under CC BY NC ND 2
3 COMMON USES IN AGRICULTURE Monitor land and crops Soil conditions and water issues Crop health and yield Monitor livestock Chemical application (pesticides, herbicides, fertilizer, etc.) Monitor buildings, fencing, equipment and other farm property OTHER USES Public service / government use Law enforcement Search and rescue Disaster recovery Firefighting Inspection of property Safety and security Traffic And OTHER USES Construction Energy Real estate Communications Entertainment Photography News and traffic Retail delivery Research INSURANCE 3
4 LEGAL AND REGULATORY ISSUES Have the ability to house high powered cameras, infrared sensors, facial recognition technology and license plate readers Privacy is a huge concern Safety is important, but airworthiness is not required Insurance likely will not be mandatory at least for now LEGAL AND REGULATORY ISSUES Drone Aircraft Privacy and Transparency Act (2013) Trespass Nuisance Invasion of privacy / harassment Data collection / inadvertent eavesdropping LEGAL AND REGULATORY ISSUES Commercial operation of UAS requires an exemption based on How and where used What type of UAS Pilot certification Exterior lighting Size and exterior markings Onboard operator manuals (what?) Other rules 4
5 CURRENT EXEMPTIONS Television and film production Field measurement, inspection and crop scouting Aerial evaluation of buildings and property Inspection of oil / petrochemical facilities and fields Construction site monitoring LEGAL AND REGULATORY ISSUES The states will no doubt get in on the act Use by law enforcement Use in surveillance CALIFORNIA DRONE ACT OF 2017 KANSAS Kansas Senate Bill319 was passed into law in This amended a few sections of Kansas law. Sec. 3. K.S.A a02 is hereby amended to read as follows: 60 31a02. As used in the protection from stalking act: (a) Stalking means an intentional harassment of another person that places the other person in reasonable fear for that person s safety. (b) Harassment means a knowing and intentional course of conduct directed at a specific person that seriously alarms, annoys, torments or terrorizes the person, and that serves no legitimate purpose. Harassment shall include any course of conduct carried out through the use of an unmanned aerial system over or near any dwelling, occupied vehicle or other place where one may reasonably expect to be safe from uninvited intrusion or surveillance. (c) Course of conduct means conduct consisting of two or more separate acts over a period of time, however short, evidencing a continuity of purpose which would cause a reasonable person to suffer substantial emotional distress. Constitutionally protected activity is not included within the meaning of course of conduct. 5
6 (d) Unmanned aerial system means a powered, aerial vehicle that: (1)Does not carry a human operator; (2)Uses aerodynamic forces to provide vehicle lift; (3)May fly autonomously or be piloted remotely; (4)May be expendable or recoverable; and (5)May carry a lethal or nonlethal payload. LOSS EXPOSURES Damage to the UAS from collision with ground or other aircraft Injury to passengers of manned aircraft due to interference by UAS Injury to people or property on the ground caused by UAS Damage to property on which operations are being performed INSURING UAS CGL Coverage A (BI and PD) Aircraft exclusion may OR may not apply Coverage B (PI and AI) No aircraft exclusion New endorsements CG Exclusion Coverage A & B CG Exclusion Coverage A CG Exclusion Coverage B CG Limited Coverage for Designated Unmanned Aircraft CG Limited Coverage for Designated Unmanned Aircraft (Coverage A only) CG Limited Coverage for Designated Unmanned Aircraft (Coverage B only) 6
7 INSURING UAS Commercial property ( business personal property ) Aviation hull coverage Aviation liability coverage Special UAS policy Physical damage, legal liability, products liability About 25 insurers currently offering INSURANCE CHALLENGES Aircraft / Aviation Personal Injury Data Breach / Cyberliability Property Insurance Workers Compensation Equipment Breakdown Directors and Officers / Management Liability War, Terrorism, Hijacking PRECISION FARMING (Some of it uses drones!) 7
8 What is Precision Farming? A farm management concept based on observing, measuring and responding to inter and intrafield variability in crops Can take large fields (or a number of large fields) and manage them as though there were a group of smaller fields AKA: Satellite Farming or Site Specific Crop Management (SSCM) PRECISION AG TECHNOLOGIES GPS Guidance and AutoSteer Section Control on Sprayers Row Control on Planters/Seeders Yield Monitoring Remote Sensing In field Sensing LiDAR (Light Detection and Ranging) Variable Rate Applications Telematics Robotics Data Management HOW IT HELPS Allows the farmer to subdivide a large field into smaller management zones Using smaller zones reduces waste while increasing production Less application of fertilizers and other nutrients Less (and more focused) application of pesticides, herbicides, etc. More dense plantings better utilization of available crop land Better water application and management of available irrigation 8
9 HOW AND WHY IT HAS GROWN Been around for 20+ years Enabled by: Crop yield monitors on GPS equipped combines Variable rate technology (VRT) such as seeders and sprayers An array of real time vehicle mountable sensors that measure everything from chlorophyll levels to plant water status Multi and hyperspectral aerial and satellite images from which products such as NDVI maps can be produced HOW AND WHY IT HAS GROWN WHY USE PRECISION AG? Reduce stress make managing a farm s output easier. Reduces potential for human error. Higher degree of knowledge of what s going on in the field. Assist in protecting the environment better application of products, less waste, higher efficiency Maximize profits less waste, less labor, higher profit per acre Better ability to meet increasing demands and shrinking agricultural footprint The world population has DOUBLED in the last 47 years! 9
10 AN EXAMPLE Automatic Section Control (ASC) for Ag Sprayers Eliminates overlap when applied in the field Can turn sprayer nozzles ON and OFF in areas that have been previously sprayed, or at the ends of rows and other areas marked for non application Comes with currently manufactured equipment or as an after market application AUTONOMOUS, ROBOTICS AND MECHANIZATION AUTONOMOUS VEHICLES, ROBOTICS AND MECHANIZATION ADVANTAGES Speed of work Can work in any kind of condition Temperature doesn t bother the Bot Doesn t get bored easily Work is accurate Don t require breaks Costs are coming down 10
11 DISADVANTAGES Technology not fully evolved Costs to high, but coming down Sensors will need to be improved Reliability will need to be proven Human presence still required 11
12 So, are your clients using these new technologies? 12
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