farm advisory service as a business partner: a new integrated approach based on progis solutions...
TRANSCRIPT
Farm Advisory Service as a business partner:
a new integrated approach based on Progis
solutions
eFarmer Central European Conference , Budapest, 31 January-1 February 2007
• Current state of FAS
• Technology intensive FAS
• The issue of data ownership
• Business opportunities with FAS
• Partners 1: Agro-Insurance
• Partners 2: Agro-Banks
• Partners 3: Commodity Sellers
• Other beneficiaries
• Cooperation within AGROffice
• PROGIS business offers
• Conclusions
Outline
• Several Strategies
for financing FAS
Current State of FAS
Realization
Public Private
Funding
PublicA – Free state advice service
B – Additional advice service (contracts, voucher schemes)
PrivateC – Cost recovery by state advice service
D – Private advice service
Source: Povellato and Scorzelli, 2006. The Farm Advisory System: A Challenge for the Implementation of Cross Compliance. INEA.
• FAS must be
operational by
January 1st 2007
at the latest (Regulation 1782/2003);
• The participation of farmers is voluntary;
• In 2010 the advisory system may become compulsory (Art. 16);
• Support granted to farmers to use FAS (max. 80 % or up to EUR 1,500 per advisory service (Art. 21);
• Support granted to cover the costs for setting up FAS, both for organisations and farmers (Regulation 1698/2005).
• Documentation is produced with one single input and for different sources;
• Reduction of reporting work, subsidy management automatized;
• Better management due to planning tools;
• A link to the agro-technological database;
• Optimisation of whole production process (e.g. fertilizer and chemicals use, machinery use etc.);
• Better business calculation, easy variants calculation
• Easy production of business plans and access to credits;
• For FAS agent:– Face-to-face communication with a farmer (due to time saving)
– Better access to and sharing of information
Technology intensive FAS
• Farmers – first hand and most reliable information,
– not so open to share their information,
– when are urged to provide information this might be not so close to the reality.
• Trust Centers– collect the information from each single farm,
– filter the information based on requirement of inquiring side,
– share the data and information (anonymously) with the farmers’ “OK”,
The issue of data ownership
• Main activities:– Advice on agro-technology;
– Farm documentation:• Subsidy claims,
• Cross Compliance issues,
• Food Traceability requirements,
• Various reports to national bodies.
• Additional activities:– Possibility to run Logistics for group of farms;
• Transport optimization,
• Land use optimization, etc.
– Possibility to provide commercial services for:• Agro-Insurance companies,
• Agriculture oriented Banks,
• Commodity sellers, etc.
Business opportunities with FAS
Partners 1: Agro-Insurance
• FAS structure as a mean for:– Marketing
– Sales
– Direct interaction with clients
– Ensuring two way communication (top-down and bottom-up)
• IT PLatform as a mean for:– Insurance data verification
– Crating database of Insurance history in a• single farm
• region
• country
– Diversification of risk areas
– Basis for prognoses and strategy development
• Banks become part of FAS structure ;• Trainings for potential clients via FAS;• First hand and reliable information from the field;• FAS agent helps farmers to produce business plans;• Increased number of clients due to the easier access to
micro-credits;• Face-to-face communication with its clients (via the service
provided by FAS agent);• FAS agent may provide a non-direct advertisement;• Co-financing possibilities of the technological enrichment
of FAS.
Partners 2: Agro-Banks
• IT platform / data and FAS structure for qualified use of new products;
• Putting datailed characteristics of the products to the Agro-Technological database of AGROffice software;
• Using FAS structure and agents for indirect promotion of their products;
• Direct feedback from end-users on improvement of products sold;
• Opportunity to integrate the newest technologies in a basis of an IT platform used by farmers;
Partners 3: Commodity Sellers
• Governmental Institutions– Up to date field level information – e.g. statistical data filtered by
trust centers;
– Opportunity to receive digital subsidy claims;
– Tools for regional planning and monitoring
– Workforce for environmental issues
• Traders, Export organisations / Exporters– Food traceability / EUREPGAP compatible
• Food producing and processing companies – Quality increase and verification ability
Other beneficiaries (partners)
• Education and Science:– Permanent support for agricultural expertise database, setup
and update
– Use of the software for educational purposes – free of charge
– Experts develop, test and implement on top expertise (GIS, FOMUMMIS, logstics, rural area management, precision farming, virtual farming etc.)
• IT Companies– Localization of Progis products,
– Permanent technical support to users,
– Distribution of licenses for Progis products
• FAS– Trainings for AGROffice users
– Feedbacks for product improvement
– Distribution channel for AGROffice
Cooperation within AGROffice
• Tools for– rural area management,
– agriculture,
– forestry,
– pipeline management,
– risk management, etc.;
• Logistics– Map production or map preparation (import, vectorisation etc.)
– Application design including i-net web solution
– Integration of time, logistic optimisation and routing
– Hardware – stationary, mobile, GPS, GPRS Communication
– Track visualisation and calculation
– Machine guidance
• Project development (Progis know-how in background);
PROGIS business offers
• FAS (when equipped with appropriate tools) is an attractive business partner for those who sell products or services to farmers;
• FAS may provide timely, reliable and accurate field level information to governmental institutions and other interested bodies for strategic planning and monitoring;
• Agro-Insurance companies, Agricultural Banks and Commodity Sellers may become part of FAS with their investments that will ensure:– Independence of FAS from project based financing;
– More demand driven services for end-users;
– Dynamic development and sustainability.
• Cooperation within AGROffice brings and opportunity to fasten the linkages between science and extension.
Conclusions
Thanks for your attention!
By Arman Manukyan, Marketing Director, PROGIS Software AGEmail: [email protected]