AGENDA Global Transformation Precision Agriculture and its Challenges Overcoming the Challenges The Right Data Data Science Unprecedented Opportunity
GLOBAL TRANSFORMATION
PRECISION AGRICULTURE IS HAPPENING Percentage of farmers who intend to adopt some form of precision agriculture over the next 5 years. VR Seeding (using prescription maps) Yield Mapping VR Fertilizer (using prescription maps) GPS Mapping of field drainage Field Scouting using GPS Soil Sampling using GPS Satellite imagery/aerial photos GPS Mapping of field topography Weed Mapping VR Fungicides (using prescription maps) VR Herbicides (using prescription maps) VR using diagnostic sensors Controlled traffic farming Electrical conductivity mapping of fields 33,0% 31,0% 31,0% 30,0% 26,0% 24,0% 24,0% 21,0% 20,0% 18,0% 14,0% 10,0% 6,0% 6,0% Adapted from Blacksheep Strategy 2014 FarmShift Precision Farming II
BIG MARKET POTENTIAL ~ 600 Million acres in 5 key global regions 78M 126M 232M 135M 58M
THE CHALLENGE THE LAST MILE Top five barriers to implementing precision farming practices. Cost Time Complex Technology ROI Service and Support Farmers Edge provides plug-and-play solutions that overcome the last mile. Adapted from Blacksheep Strategy 2014 FarmShift Precision Farming II
CORE PILLARS VISION THE PRECISION AGRICULTURE PLATFORM The Right Data Decisions with Impact Ease of Use Global Reach All Whole Farm Field Centric Fundamental Agronomy Data Science Recommendations Passive Minimal Intervention Walk the Last Mile Low Cost Highly Scalable Execute in data sparse environments INTEGRATED: SOFTWARE, HARDWARE, SERVICES
FARMERS EDGE STRATEGY
BUSINESS MODEL TODAY Whole Farm Complete, Full-Service Solutions Recurring Revenue Model $ Per Acre Pricing Contract Term of 4 Years
INITIAL INVESTMENT IN DIGITIZING THE FARM Creation of field borders Full historical imagery analysis Field zone mapping Full soil sampling Crop input recommendations Installation of CanPlugs and weather stations Agronomist consultation FarmCommand training
ONGOING VALUE TO THE FARMER Crop health assessment Prescription map Precision harvest map Precision profit map Field-centric data management Field-centric data analytics
THE RIGHT DATA DATA ACQUISITION DATA MANAGEMENT DATA SCIENCE
DATA SCIENCE Turn vast amounts of the right data into decisions with impact. Agricultural Science Mathematical Applications Computer Science Statistics
INTEGRATED PROPRIETARY DATA SET
SITE-SPECIFIC WEATHER DATA A weather station located as close to the field as possible ensures that the most site-specific data and therefore the most accurate data is being used for decision support. Basing important decisions on data that has been acquired from further away increases the margin of error, thus compromising the reliability of decision support tools.
IMAGERY Satellite based RapidEye partnership, 3 rd year Farmers Edge is largest global agriculture customer. N. America, Brazil, Russia, Australia. Multispectral sensor with five bands Red, Blue, Green, Near- Infrared and Red Edge. 5 m pixel size across all five bands. An area of interest (AOI) can be targeted several times during the crop season for a comprehensive time series. Drones and new forms of imagery capture Continually researching and testing with thought leaders Collaborating with our farmers on pilots and test projects
FARMERS EDGE SOIL LABORATORIES CONSISTENCY AND QUALITY OF TESTING Largest internal lab in the precision agriculture space, and highest volume agricultural soil testing lab in Canada. Processed 100k soil samples over the 2015 crop year representing ~2,100,000 acres. Will directly process over 20 million acres by the year 2020 New facility in 2016 with staffing enhancements and equipment upgrades will increase soil processing capacity 2-fold. New Near Infrared technology allows for soil texture analysis on every sample processed. Technology and workflow process can be exported to other labs to support global expansion.
TELEMATICS CANPLUG PLATFORM
CANPLUG Brand independent, real-time, remote data capture, supporting the majority of key agricultural equipment (seeders, sprayers, combines). Data transfer over cellular network. Fast installation and setup. Two-way data transfer, supporting data capture and over the air (OTA) updates. Data can be filtered on device to reduce bandwidth costs, configurable in real-time. CANPLUG-X Proprietary mesh network technology. Designed for deployments in environments with little to no cellular networking capabilities. Leverages existing CANPLUG base platform for economy of scale in manufacturing.
GLOBAL REACH BY 2021 35+ Million acres 13,000+ weather stations 34,000+ real-time connected machines Millions of acres of soil data Trillions of proprietary database entries for data science and machine learning
DATA SCIENCE Turn vast amounts of the right data into decisions with impact. Agricultural Science Mathematical Applications Computer Science Statistics
DATA SCIENCE Key Differentiators 1. Data Availability Terabytes of field-centric data. Satellite imagery Soil samples Observed yield/as-applied data Weather information Fleet monitoring New information collected daily. Proprietary, connected data. 2. Agricultural science + Computer science Agriculture and remote sensing scientists provide; Context Starting points and base lines Search heuristics Software engineers provide; Scalable architecture Machine learning
DATA SCIENCE Our data science team extracts knowledge from data sets, generating; Support for our existing decision making and processes. Is our current zoning practice optimal? Are farmers realizing maximum profit from our recommendations? Actionable insights for the farmer from predictive analytics. Is equipment failure imminent? Am I in danger of a pest outbreak? What will my return be on an extra 10 lbs of urea? Should I desiccate my peas to avoid an impending weather event?
DATA SCIENCE Our data science team will extract knowledge from our data sets, generating; Actionable insights for third parties from predictive analytics. What is the true replacement cycle of tractors and combines? What is my farmland investment really worth based on productivity risk factors? How should we position ourselves in the corn futures market? When should I sell my grain and at what price?
FARMERS EDGE POSITIONED TO WIN The only fully integrated platform operating today. Our lead is building. Strong network effect with positive customer references, 100% retention. Years ahead of others, integrated plug-and-play system. Global proprietary field-centric data set rapidly growing. Protected by proprietary IP and practices.
PARTNERING FOR SUCCESS We believe in collaboration, partnerships and integration with those that farmers trust If your company is interested in learning how you can work together to grow technologies and value for farmers, please stop by the booth and schedule a private meeting
THANK YOU