Agriculture in 2024 and Beyond
In Agriculture, The Only Constant is Change...We have all heard that statement, and being involved in the farming industry, no one reading this will likely disagree. During discussions with peers and customers during the last few months, the real question becomes are we ready for the speed that change is coming and are we nimble enough to evolve and adapt at an ever-increasing pace? To answer that question, I thought it might be interesting to take an abbreviated look at where we are and where we are headed.
Thirty years ago, when I got into the dealership world, yield monitors were cutting edge technology. Operators could see on the fly what yields were as the combine harvested crop. Very quickly the technology changed and with the addition of a GPS receiver, yield monitoring became yield mapping. This tool, combined with grid soil sampling, became a solid foundation for variable rate fertilizer application and seeding, which are a factor in the increased yields and ROI we are currently experiencing. GPS utilization opened the doors for additional gains in productivity and efficiency. Site Verification, AutoTracTM, Section Control, Implement Guidance - all are technologies that rely on knowing exactly where machines are in a field to function. And then to tie this all together, telematics was introduced into the mix, connecting entire fleets. This connectivity allowed for data transfer and sharing both in-field between machines and to Operations Center, remote support and diagnostics, and the ability to update software and features, all without having to touch the machine. For the most part, the above-mentioned technologies: documentation, machine control and telematics, have become standard features embedded into the machines John Deere currently produces. All of this has happened in essentially one generation and the speed of change is increasing.
Fast forward to today. Technology is ingrained into nearly every facet of our operations and is enabling agriculture to produce more while increasing efficiencies and doing it in a more sustainable manner. It is no secret John Deere is currently introducing new technology and doing it at an unprecedented rate. It is also no secret that to get these technologies into grower’s operations as quickly and efficiently as possible John Deere is changing how these technologies are being delivered to customers. No longer does a grower have to purchase new machines to experience the benefits current technology offers. Precision Upgrade Kits (PUK) have been available for some time on planters (think ExactEmergeTM upgrades for planters). With the new strategy, growers can purchase current technologies through the advent of Precision Upgrades and install them on machines they currently own and operate. PUKs not only include traditional efficiency improving technologies, but also the new AI enabled Sense and Act offerings such as See & Spray, where sensors detect a weed, the controller identifies it as such and controls an individual nozzle to spray it.
Another exciting opportunity with John Deere Precision upgrades is the pricing strategy. The new strategy for AI enabled technologies is a subscription-based pricing model. With this pricing structure, growers purchase the enabling hardware and simply pay a per acre per pass charge to utilize the technology. This allows for a lower upfront cost to realize the benefits new technology offers. It also allows a grower to only pay for the acres the technology is utilized on, thus reducing incurred expense. Additionally, since software is the enabler, there is an opportunity for the product to perform better with every software update that is delivered over the air to our connected fleet. So, in summary, growers get the benefits of lower upfront cost, only pay for the acres they utilize the technology on, and the product will get better over time.
Where are we headed? Only time will time tell, but in my mind the technologies mentioned above, and more, are simply building blocks to be utilized as we head towards full autonomy in situations where it makes sense. Breaking down the progression from what we consider legacy technology and machine control through the advanced AI-enabled Sense and Act technologies that we are currently developing and deploying, takes autonomy from a scary proposition to an exciting opportunity.
Back to my initial question at the beginning of this article: Are we ready for the speed that change is coming and are we nimble enough to evolve and adapt at an ever-increasing pace? My experience indicates that as an industry we are and as a John Deere Dealer in Southeast Iowa, Sinclair Tractor is ready to support the technology that is already here and will continue to evolve our support capabilities as the technology tsunami known as Precision Ag becomes more ingrained and mainstreamed into farming operations of all sizes.
If you would like to know more, please reach out. Sinclair Tractor is excited by technology and wants to be your partner in achieving success.