UnderstandingPrecisionAdoptionthroughTwoDecadesoftheCropLife PurdueSurvey
BruceErickson,EducationandDistanceOutreachDirector,AgronomyDepartment,PurdueUniversity
JamesLowenberg-DeBoer,ElizabethCreakProfessorofAgri-TechAppliedEconomics,HarperAdamsUniversity
1
Precision Dealer Survey Specs• Conducted yearly 1997 to 2009, then every other year. • Topics:
• Precision technologies used by the retailers in their business• Precision products and services offered to customers• Retailers’ estimation of farmer use of precision practices• Profitability, technology investment, constraints to adoption• Added more data questions in 2017
• Use U.S. CropLife magazine contact list• Respondents include cooperatives, independents, multi-location
regional companies
2
• HighlightspublishedinJuneCropLife magazinetheyearofsurvey
• Fullreportspostedonline:http://agribusiness.purdue.edu/precision-ag-survey
Retailer Use of Precision Technology in 2017• GPS Guidance and
sprayer section control is standard practice
• Satellite and aerial imagery used by about half for internal purposes.
4
GPS guidance systems with automatic control (autosteer) for fert/chem application 78%
Auto sprayer boom section or nozzle control 73%
GPS guidance systems with manual control (light bar) for fertilizer/chemical application 55%
Satellite/aerial imagery for internal dealership purposes 52%
Smart scouting using an app on a mobile device to record field situations and locations 44%
Field mapping with GIS to document work for billing/insurance/legal purposes 43%
UAV or drone for internal dealership purposes 34%
GPS to manage vehicle logistics, tracking locations of vehicles, and guiding vehicles tothe next site 34%
Telematics to exchange information among applicators or to/from office locations 24%
Soil electrical conductivity (EC) mapping 22%
Sprayer turn compensation 22%
Other soil sensors for mapping, mounted on a pickup, applicator or tractor (example:pH sensor) 9%
Chlorophyll/greenness sensors mounted on a pickup, applicator or tractor (CropSpec,GreenSeeker, OptRx, etc.) 9%
Retailers Adopted GPS Guidance Rapidly for Internal Business Use (% of Retailers)• Lightbars
rapidly adopted starting in late 1990s
• Autosteerrapidly adopted starting in about 2004
• Both are easy to use and have short run benefits
24%
42% 44%
56%61%
64%67% 68%
73%
79%
66% 65% 63%
55%
5% 6%
20%27%
37%
53% 63% 61%
83%78%
4% 2% 3% 5%4% 4%
6% 5%8%
11%16%
20%
37%34%
2% 3% 1% 3% 3%7%
15%20%
9%
39%
53%
74% 73%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
GPSguidanceGPSguidancewithmanualcontrol/lightbarGPSguidancewithautocontrol/autosteerGPSforlogisticsTelemetry- field-homeofficeGPS-enabledsprayerboom/nozzlecontrol
Retailers Slower to Adopt Sensing Technologies• Return for sensing
technologies more complicated—no return until data is turned into a decision
• Percent of retailers -Note % scale compared to previous slide
6
12%
19% 20%
24% 18%20%
20% 19%
27%
35%32%
41%43%
16%18%
22%20%
28%30%
30%
39%
51% 52%
6%8%
11%
6%9%
13%
13% 12%14%
22%16%
24%
4%7%
6%
9%
3% 3%
7%
0%
10%
20%
30%
40%
50%
60%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Fieldmapping(GIS)forlegal/billing/insur.
Satellite/aerialimageryforinternaluse
Soilelectricalconductivitymapping
UAVs
Chlorophyll/greennesssensors
Othervehicle-mountedsoilsensorsformapping
Ag Retailers Slower to Offer Data Gathering Technologies to Customers (% of Retailers)
• Data collection technologies are foundation of data-driven farming
• Intensive soil sampling services have become almost standard practice.
• After many years over 50% offer satellite imagery
• 2020 numbers are their projections
7
33%
45%
38%36%
44%
52%47%45%45%
40%
53%52% 52%57%
67%
82%85%
29%
38%37%34%
41%
50%42%33%
39%
35%
47% 44%47%
49%
57%
78%83%
24%29% 23%
18%24%
30%28%29% 27%26%
34% 39%36%
42%
51% 57%
67%
15%20%
15%11%
16%23% 22%24%
23%19% 24%
29%29%
27%
41%
48%
12% 13%15%
19%15%
26%
23%
25%
33%
48%
59%
71%
24% 23%
28%36% 39%
14% 13%
19%
34%
45%
32%
59%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
GridorzonesoilsamplingFieldmapping(withGIS)YieldmonitorandotherdataanalysisYieldmonitorsales/supportSatellite/aerialimageryGuidance/autosteersales&supportSoilECmappingUAVordroneimagery
Soil Sampling←More dealers sample in grids
than zones
←If zones, soil mapping units or yield maps most common method for delineation
←If grids, 2.5 acres most common size
8
54%
67%
47%
0% 20% 40% 60% 80% 100%
Traditional,wholefieldapproach
Gridpattern
Managementzones
41%
32%
14%
13%
0% 20% 40% 60% 80% 100%
SoilMappingUnit
YieldMap
ElectricalConductivity
Other
1%
8%
64%
27%
0% 20% 40% 60% 80% 100%
<1acre
1acre- 2.49Acre
2.5acre
2.51acre- 5acre
%ofRespondents
Dealer Offerings of Variable Rate Technologies• % of Retailers• VRT is the action side
of data technologies for data-driven farming
• Most dealers offer VRT services.
• Farmer up take of VRT has been slower
• 2020 are projections
9
81% 84%
20%
32%32%29%
50%45%
41%43%
47%43%
56%56% 54% 54%
69%
9%15% 14%
16%20%
26%23%22%
25%25%
33% 39%42% 42%
64%
33% 37%34%33%
36%33%
44%44% 45% 45%
59%
67%70%
10%12%12% 14%16% 13%
23%23%
22% 22%
27%
17%
42%
3% 3% 4% 3% 2%6% 5% 6%
9% 6%
15%18%
23% 24%
50%
56%
66%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
VRTfertilizerapplication
VRTFertilizer,singlenutrient
VRTFertilizer,multiplenutrient
VRTlimeapplication
VRTpesticideapplication
VRTseedingprescriptions
Farmer Adoption Estimated by Retailers in their Market• % acres in the
retailer’s market area, not % farmers
• GPS guidance becoming standard
• For yield monitor data always a question of use
• 2020 are projections
10
14% 16%20%
22%26%
32% 33%
43%
3% 4% 6%
7% 9% 9%
13%15%
18% 19%
33%
6%
22%
12% 13% 15%19% 21%
17% 18%22%
27%30%
34%37%
41%
45%
62%
3% 4%2%
9%17%
3%4%
3%10%
4% 6%
11%15% 21%
30%
34%
52%
60%
72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Yieldmonitorw/GPS
Satelliteoraerialimagery
UAVordroneimagery
Gridorzonesoilsampling
SoilECmapping
Chlorophyll/greennesssensorsforNmanagement
Guidance/autosteer
Farmer VRT Adoption Estimated by Retailers• % acres, not %
farmers, in the retailer’s market area
• Substantially higher estimates than USDA and other sources
• Farmer interest in VRT seeding remarkable
• 2020 are projections11
38%
54%
8%
7%
9% 11%13% 15% 15%
19% 22%
27% 26% 27% 31%
5%
6% 7% 8%10% 10%
13%16% 18%
22% 24%
32%
8% 9%11%
15%16%
18% 16%22%
24%
33% 33%31%
41% 40%51%
2% 3%
4%5% 6%8% 7%
10%9%
10%13% 13% 14%
3%
13%
2% 2% 4%3% 3% 4% 5%
7%9% 10%
13%
30%
0%
10%
20%
30%
40%
50%
60%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
VRTnutrientapplication
VRTsinglenutrientapplication
VRTmultiplenutrientapplication
VRTlimeapplication
VRTpesticideapplication
VRTseedingprescription
Nutrient Management and Hybrid/Variety Selection Dominate Decisions Based on Farm Data• 58% of retailers
manage and/or archive yield, soil test and other data for farmers.
• 17% pool that data within their customer base.
• 10% pool that data beyond their customers
• Only 13% of retailers do not help customers with farm data
12
17%
18%
29%
20%
31%
25%
33%
23%
37%
55%
85%
44%
39%
34%
40%
39%
45%
38%
42%
37%
30%
10%
29%
32%
28%
32%
22%
27%
27%
30%
25%
11%
3%
10%
11%
9%
7%
8%
3%
3%
4%
2%
5%
1%
0% 20% 40% 60% 80% 100%
Nitrogendecisions
PandKdecisions
Limingdecisions
Overallhybridorvarietyselection
Variablehybridorvarietyplacementinfield
Overallcropplantingrates
Variableseedingrateprescriptions
Pesticideselection(herbicides,insecticides,or…
Croppingsequence/rotationdecisions
Irrigationdecisions
Other
%ofrespondents
Noanswer Noinfluence Someinfluence Majorinfluenceondecision
Retailer Survey: Cost Savings from Precision Ag
Retailer Survey: Yield Gains from Precision Agriculture
Profitability of Precision Service Offerings• % of Retailers• VRT fertilizer
related services usually profitable
• Sensing services (e.g. UAV, satellite/aerial imagery, soil EC, chlorophyll sensors) less profitable
11%
6%
5%
7%
27%
19%
19%
17%
26%
30%
23%
5%
22%
31%
23%
29%
26%
13%
5%
4%
4%
6%
9%
9%
14%
16%
29%
12%
5%
8%
0%
6%
20%
10%
45%
21%
11%
20%
25%
32%
37%
39%
36%
27%
27%
28%
33%
42%
27%
27%
44%
31%
68%
80%
69%
42%
39%
35%
31%
22%
14%
38%
61%
38%
27%
44%
24%
20%
0% 20% 40% 60% 80% 100%
Fieldmapping(withGIS)
VRTfertilizerorlimepresc
VRTfertilizerappl
VRTlimeappl
VRTpesticideappl
VRTseedingpresc
Yieldmonitorsales/support
Yieldmonitorandotherdataanalysis
Satellite/aerialimagery
UAV
Guidance/autosteersalesandsupport
Gridorzonesoilsampling
SoilECmapping
Chlorophyll/greennesssensors
Precisionplanterequipsales
Telematicsequipsales
Profit/costmapping
%ofrespondentswhooffertheservice
Don'tknow Notbreakingeven Breakingeven Makingaprofit
Informing the Precision Work Force
• Interviewees showed low levels of knowledge in many critical areas
16
Dealer Barriers to Adoption• General
downward trend• Biggest drops in
cost of equipment and demonstrating value
17
72%
51%47%
49%
37%
35%
43%45%
37%40%
35%
28%
40%
61%57%
51%
55%
43%
48%51%
43%
38% 36%
44%
36% 41%
63%
44%46% 42%
36%
42%41%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2004 2008 2009 2011 2013 2015 2017
%ofR
espo
nden
tsth
atAgreeorS
tron
glyAg
ree
Thecostoftheequipmentrequiredtoprovideprecisionserviceslimitsourprecisionofferings
Thecostoftheemployeeswhocanprovideprecisionservicesistoohighforprecisionagtobeprofitable
Thefeeswecanchargeforprecisionservicesarenothighenoughtomakeprecisionservicesprofitable
Ourcompetitorspriceprecisionagriculturalservicesatlevelsthatarenotprofitableforus
Demonstratingthevalueofprecisionservicestoourgrowersisachallenge
Dealer Barriers to Adoption
• Uptick in difficulty to find employees
18
47%49%
44%
50%47%
62%
22%19%
23%19% 18% 20%
24%
46%
37%
28%
38%
29%31% 31%
65%62%
54% 54%
45%
56%
50%
29%33%
30%
32%27% 29%
28%
35%
45%49%
41%35%
41% 41%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2004 2008 2009 2011 2013 2015 2017
%ofR
espo
nden
tsth
atAgreeorS
tron
glyAg
ree
Itisdifficulttofindemployeeswhocandeliverprecisionagriculturalservices
Lackofmanufacturersupportforprecisionserviceslimitsourabilitytoprovidesuchservices
Creatingaprecisionprogramthataddssignificantlymorevalueforthegrowerthanatraditionalagronomicprogramisdifficultforus
Theequipmentneededtoprovideprecisionserviceschangesquickly,increasingmycosts
Theequipmentrequiredtodeliverprecisionservicesistoocomplexformanyofmyemployeestouse
Incompatibilitiesacrosstypesofprecisionequipmentandtechnology(differentdataformats,inabilitytoshareinformation)limitmyabilitytoofferprecisionservices
CropLife-Purdue Survey Summary:
• GPS guidance technologies have been adopted rapidly by retailers
• Information-intensive technologies more complicated, adoption is slower
• Many ag retailers offering farm data management & archiving• Few ag retailers offer farm data analysis• Creating a profitable data driven ag input supply business is
challenge for retailers
19