The International Monetary Fund, citing a Pew Research Center analysis of a United Nations’ report, predicts the world’s population will reach 9.7 billion by 2050. Why is this important? Because a growing population requires food for every person’s survival, and today’s farmers and agribusinesses are scrambling to figure out how to produce more food more efficiently, so they can ensure food security.

That’s where smart farming technologies come into play.

Smart farming brings sensors, connectivity, automation, AI, and data platforms into everyday farming to improve yields, reduce inputs, boost resilience, and combat climate change. Today, we’ll explore the smart farming tech landscape, including:

• How to implement smart farming systems.
• How to evaluate the ROI of smart farming.
• How to offset the costs.
• How to mitigate the challenges that come with modern technology.

And we’ll discuss how Acumatica’s ERP Software for Agriculture can help farm owners and operators, agribusiness leaders, and IT decision-makers optimize their business processes as they look to modernize and ready their agricultural operations for future requirements.

What Counts as “Smart Farming”?

Smart farming uses innovative, data-driven technologies to update farm management and agricultural systems so they can sustain, increase, and improve food production.

Examples of smart farming technologies include:

• Internet of Things (IoT) Devices: Using embedded sensors that connect with software systems to collect and analyze data—monitoring livestock, crops, farm equipment, moisture, nutrients, canopy stress, etc.
• Light Detecting and Ranging (LiDAR): Using pulsed laser light to create a model of an object or site via drones/sensors—optimizing irrigation, preventing soil erosion, monitoring crop health, etc.
• Robotics: Using robots to automate tasks previously performed by people (e.g., self-driving tractors and unmanned aerial vehicles (UAVs) to spread seed or prune).

Another example of smart farming technology is a cloud-based ERP solution, like Acumatica and its artificial intelligence (AI) and machine learning (ML) capabilities. ERP solutions allow agriculture professionals to analyze the data they gather from their smart farming technologies all in one place, so they can unify their data, utilize multi-dimensional reporting, and rely on role-based security to make data-driven decisions.

How to Implement Smart Farming Systems Without Derailing Operations

Implementing smart farming systems can be a complex process that requires dedication, time, manpower, and a realistic budget. (The U.S. Department of Agriculture (USDA) provides financial assistance and loan programs for this purpose.) It also requires assistance from smart farming technology experts who understand the systems and what it takes to get them up and running, including:

• Problem framing.
• Data audits.
• Pilot designs with success metrics.
• Interoperability checks.
• Connectivity planning.
• Change management.
• Training plans.

Connectivity

Wireless sensor networks and IoT architecture are central to any smart farming technology decision. Connectivity and data sharing—with the appropriate security features and protocols in place—are adoption enablers. Secure, centralized farm management software removes the risk of having critical data stored in multiple systems where it could become compromised, inaccessible when needed, or lost. It also ensures that that data is always available, often in real time, so you can keep your finger on the pulse of your agriculture operations. With those issues solved by ERP, you can focus on the more important pieces of implementing smart farming technology: determining map coverage, choosing protocols that fit your acres and terrain, planning what sensors you need where, and so on.

Interoperability and Integration

Farming operations need technologies that are compatible with existing machinery and software and that can integrate with (or replace if needed) their inventory (e.g., seeds, fertilizers, equipment) and financial systems. In an agriculture ERP system, look for open APIs, which enable these integrations—preventing data silos and allowing information to flow seamlessly, giving users quick, time-saving access to critical information.

Skills and Change Management

To ensure that the adoption of smart farming technologies succeeds, a skills and change management plan may to be put in place. This plan should include identifying champions (team members who will lead the charge and keep the implementation going), scheduling short training loops, defining standard operating procedures for data capture, and building basic digital literacy. Human capital and digital skills are the enabling factors for smart farming and will help make the transition a success.

Smart Farming ROI

The benefits of investing in smart farming technologies should always be weighed against the cost. Compared to the potential return on investment (ROI), how high should the budget for hardware, software, connectivity requirements, and training be? Using a project-cost and cash flow tracking tool, like Acumatica’s Project Accounting, can provide a good picture of your possible ROI—an important consideration for any farm or agribusiness looking to implement digital technologies.

Key Challenges and How to Mitigate Them

Potentially high ROIs suggest implementing smart farming technologies is a wise, business-enhancing decision that comes with impressive benefits, including:

• Increased visibility into agribusiness operational health and performance.
• Improved control over crop quality and yield (with the same amount or even reduced inputs, such as water and fertilizer).
• Reduced production and labor costs.
• Enhanced livestock longevity.
• Improved environmental outcomes (e.g., less use of chemicals, reduction in water usage, and more) and climate resiliency.

While business complexity, change resistance, and skills gaps may be challenges to technology implementations, they can be mitigated (or entirely avoided) with some smart planning steps.

Phased rollouts will allow you to progress step by step, giving you time to fix any hiccups as you go.

Communicating with employees in advance—letting them know that new technologies are coming, why the implementation is happening, and what tangible benefits they can expect—prepares them for the change and alleviates possible resistance. Vigorous training programs also eliminate skill gaps.

Starting small with pilot technology tied to clear metrics, ensuring system interoperability and connectivity, and using a comprehensive, cloud-based ERP solution, like Acumatica, to unify all your tech under one umbrella are the keys to mitigating growth challenges and setting up your business for a successful digital future.

To learn more about Acumatica’s comprehensive cloud ERP solution and ERP Software for Agriculture, contact our experts today.

What Other Acumatica Agriculture Customers Are Saying

Kelly Products, Inc., unified 13 business entities with Acumatica’s all-in-one platform.

“One of the key benefits is being able to link companies. We can make an update once and it translates the update for all our companies rather than having one person manually enter the update into many systems.” – Corey Wynn, Information Technology Manager (Former), Kelly Products, Inc.

American Meadows opened a new path for providing personalized meadowscaping solutions for every customer at scale.

“Acumatica has given us a robust ecommerce solution to keep us on the cutting edge. We have the flexibility and data access that we need to scale our business as we grow, and to identify and resolve potential problems to our customer’s satisfaction quickly.” – Ethan Platt, President & Co-Owner, American Meadows

Happy Valley gained the ability to simultaneously track the unique lifecycles, post-harvest care, and regulatory requirements for 50 individual cannabis cultivars.

“Being able to analyze every aspect of our production process and create efficiencies and drive efficiency through that data has helped us immensely. Because it’s a living plant, every time we grow a strain, it can yield differently. It can test differently, and it can grow differently. All of those things were impossible to track. [With Acumatica, we can enter any number of variables into the platform, and] that allows us to make decisions that are going to help drive our business.” – Sean Corrigan, VP of Operations, Happy Valley

Cornell Cooperative Extension found full financial transparency, closed staffing gaps thanks to Acumatica’s award-winning usability, and gained nonprofit tools to help them respond quickly to changing community needs.

“Acumatica is magic. We haven’t found anything we can’t do with Acumatica.” – Donna James, Statewide Finance Specialist, Cornell Cooperative Extension.

Redmond Inc saved millions in inventory costs and gained an unconstrained platform for growth.

“With Acumatica as the heart of the business, there isn’t a challenge or technical problem we can’t overcome.” – Aaron Gabrielson, CTO, Redmond inc.