The agricultural sector is no stranger to challenges, and in recent years this is truer than ever. The pandemic has brought with it a raft of obstacles, not to mention the ongoing climate reckoning and the implications of Brexit and ending of EU (European Union) subsidies. Costs for inputs like fertiliser and fuel are increasing, and yet labour capacity and costs are ever more challenging: profits are being squeezed from many different directions. In order to drive and maintain performance, agricultural businesses need to start thinking about how to reduce overheads and become more efficient, as well as more sustainable. 

According to reports by Department of Environment Food and Rural Affairs (Defra) the agriculture industry contributes a huge 10% of UK greenhouse gas emissions, compared to a GDP contribution of just 0.6%. Based upon this alone, it is clear the industry is ripe for change and vulnerable to government intervention. With the possible introduction of government subsidies for farmers doing public good it will be crucial for farms to be able to evidence where they have reached emissions targets and maximised efficiency alongside other targets. 

On top of this, the sector is seeing a boom in innovative technology and tools, which present a real opportunity to farmers and agribusiness. To capitalise on these advancements, many organisations will need to seriously review internal processes and systems, and in many cases embark upon a significant modernisation effort. With so much on offer, it can be tough for leaders to pinpoint the best and most appreciate technology solutions to fit their organisations and understand how the tech can be applied to achieve tangible results.  

When it comes to hot topics, data and sustainability have both become somewhat of buzzwords. And for farmers, the sustainability of their operations will be linked to subsidies, with the Sustainable Farming Incentives. So, could the two ideas be combined? Can utilising data unlock possibilities that will drive sustainability for agriculture?

First, businesses must understand the value of their data. Most farmers have been collecting data for decades, whether or not they are aware of it! This data is not just valuable internally but is also commercially valuable for other businesses. Gathering and consolidating data sources and developing a data warehouse is a sensible first step, but it is important to consider how the data will be used, and therefore how it should be stored. For many organisations, this existing data is not always in the best shape, and so assessing the data quality is vital. This is a problem for organisations across most sectors – a recent survey from Gartner estimates that businesses are losing around 15 million dollars a year due to poor quality of data. 

There is a need for data analysts and tools to help drive future farming, and those who can seize this opportunity will be in a strong position to reap the benefits from any potential subsidy schemes and capitalise on the efficiency gains to be made. So, once data is all in one place and has been knocked into shape, how can it actually be used, and importantly, where could using data really start to make a difference for the sector? 

The outlook for profits in 2022 is not a positive one, with increases in costs set to impact many in the sector. Farmers everywhere are being expected to do more with less: the increase in global population (predicted to reach 10 billion by 2050) coupled with decrease in arable land means that efficiency of production is absolutely key. As such, every input and output, however small, is critical to a profitable operation, and the more data businesses can access, the better. 

Utilising data that is already available, farmers will be able to automate interventions and significantly reduce the need for human involvement. Tools that can analyse combined data sets, for example soil conditions, air temperature, and soil temperature are then able to identify the required levels of irrigation or pest control, etc. These inputs can be triggered automatically and have a major effect in streamlining these processes and removing manual tasks.  

By having real-time data at the touch of a button, businesses can track progress, yields and profits throughout the growing and farming process. This will allow live-time decision making, and even allow farmers to make the ‘stop-farming’ decision and abandon crops or geographical areas the moment the margins drop below a certain threshold, or they stop being viable endeavours. This will switch the focus to the profits rather than the produce and allow clearer decisions to be made and minimise losses. 

And when it comes to yields, the focus should not just be on the inputs to the farming process. Post-harvest losses globally are significant – recent research suggests that reducing global postharvest grain losses by 75% could result in gains equivalent to approximately three times the cropland area of France. 

And it is not just arable farming where data driven decisions will make the difference. Being able to closely monitor and improve the health of livestock will mean fewer methane-producing animals will be required to meet the global protein needs and leveraging data analysis tools could allow for better management of fisk stocks and limit overfishing. These are all high priorities from a climate perspective as well: combining data sources from the industry, business, government, environmental and other data sources will be critical to farms moving towards Net Zero by 2050. This target is looming fast, and it will require a combined effort by the entire sector. Pooling data resources is an inevitable and critical requirement in moving the industry towards a more efficient and environmentally sustainable model. 

Efficiency is the gold standard that businesses in all industries are chasing, but for agriculture, the potential wins associated with more efficient processes go way beyond profit margins, and customer satisfaction. For the agricultural sector, we can draw a direct correlation between efficiency and sustainability. The more efficient an organisations’ processes, the more they can reduce losses, reduce inputs, and minimise negative impacts on the environment. Put simply, the more efficient you are, the more sustainable your operation.