AGCO leads the way for precision farming

The agriculture industry is at a hinge point. Not since the advent of mechanised farming in the 1800s have we faced such a sea change in one of the world’s oldest and most vital practices. As the world population grows, the industry is more challenged than ever to meet increasing demand for food, fuel and fibre. Farms must increase production of food, fuel and fibre a staggering 60 percent by 2030 in order to meet this need, on the same amount of farmland that exists today. They can’t do it alone and they can’t do it using traditional farming practices. Welcome to the future of farming.

In the last 10 years, a new subset of the agricultural industry called ‘precision farming’ has seen accelerated growth, garnering increasing attention in the global economy. Precision farming is the practice of using telemetry, sensors, data, satellite positioning and other technologies to more precisely treat farmland and manage farm operations, using fewer resources at reduced production costs. The result is higher yields of crop output per acre. Analysts expect the global precision farming industry to grow 13 percent in the next seven years to over $6.34bn. Many players in the agricultural industry ecosystem are working hard to contribute on several fronts: seed and biochemical companies, agronomists, and technology and farm equipment manufacturers.

We are still in the early stages of precision farming as a subset of the overall agricultural industry, entering the rapid acceleration phase for technology adoption. There are myriad solutions for farmers, creating numerous separate hardware, data formats and learning curves. This results in an often-overwhelming number of choices for farmers to make about precision farming product and service providers, and an even more overwhelming amount of data to contend with. The breadth and complexity of farm data generated can be a gold mine of information and insight – for those who have the time and resources to make sense of it – but it can be difficult to sort through it effectively. That’s right – even farmers are hitting the big data wall. Industry players are delving into that world of data, attempting to simplify and help farmers use it for science-based improvement of their operations.

Shifting the paradigm
AGCO, the world’s largest pure-play agricultural equipment manufacturer, is taking a fresh approach to the big data challenge, blurring the lines between technology and equipment in a way that puts farmers, and the daunting task of feeding the world, first. Traditionally, AGCO and other agricultural equipment companies have focused on iron: tractors, engines, planters, applicators and harvesting equipment. To be sure, machines are critical to the farming operation, and this space is still growing – especially in emerging markets that are just adopting mechanisation. AGCO is moving beyond that focus to address data and technology and their intersection with machinery.

With the proliferation of so many interested, diverse businesses in the precision agricultural mix, all pushing their own data and technology solutions to solve global farming challenges, AGCO has determined that a new model is in order. “Rather than forcing farmers into corners where they can use only a single brand of products and services in order to see maximum benefits of their farming tools, we’ve decided to help rather than hinder their ability to bring everything together”, says Eric Hansotia, AGCO Senior Vice President of Global Harvesting, Crop Care, Advanced Technology Solutions, and Dealer Technical Support.

AGCO is positioning itself as a facilitator with a truly customer-centric approach, helping farmers connect their operation, spanning brands, machines, fields, geography and throughout each phase of the crop cycle. In 2013, AGCO launched its global precision farming and machine management strategy, Fuse Technologies. It represents AGCO’s current and future precision tools and a commitment within the company and dealer network, to help farmers increase uptime and optimise, coordinate, and seamlessly connect their operations.

At the centre of the Fuse strategy is AGCO’s AgCommand telemetry system, which, in conjunction with operation-specific tools such as application rate and section control, GPS guidance, advanced sensors, yield monitors, grain bin dryer controls, and mobile apps for seamless management on and off the farm, gives farmers maximum control and visibility into their operation. This means they can spot trouble sooner, reduce downtime and run a more efficient operation. AGCO dealers can take this optimisation support to the next level for their customers, offering customised service packages for everything from overall operation consultation, off-season inspections and preventive maintenance to real-time monitoring, diagnostics and on-site parts support.

AGCO’s emphasis on mobile access and total fleet and asset management enables farmers to work more efficiently with the mix of brands and service providers of their choice, while making better use of their data and enjoying the level of privacy they want. In fact, AGCO’s approach to farm data sets it apart from other manufacturers: in order to afford farmers the level of privacy they desire, AGCO funnels data through two separate pipelines. Sensitive task data, such as how a farmer plants and treats his field, flows through a channel separate from machine data such as fleet fuel efficiency and engine performance. This allows farmers to choose what data they share with whom. “Other equipment manufacturers require absolute sharing of all this valuable data, and it doesn’t sit well with many farmers”, says Matt Rushing, AGCO Vice President, Advanced Technology Solutions Product Line. “We have no need for or interest in our customers’ agronomic data. However, if they’d like to share their machine data with their dealers and us, we can help analyse it to provide additional services and support, without accessing their agronomic data.”

Open approach
Another area in which AGCO is disrupting the traditional model is in its focus on developing strategic, long-term partnerships with others both in the agricultural industry (such as seed companies and farm technology manufacturers) as well as outside of it (such as mobile and software developers). AGCO also takes a leading position in industry associations that seek to advance precision farming practices for the greater good of agriculture and food production, such as standardising the data formats that machines and implements create and use. Establishing data connections through AGCO’s API is another key piece of the puzzle, enabling qualified software and service providers to help farmers transfer and use machine and field operation data.

AGCO calls this its “open approach” to precision farming, and it is unique in the industry. AGCO brings together the best suppliers, partners and developers for the benefit of the farmer, rather than undertaking all development in house, and forcing customers to use proprietary systems. The company believes enabling its customers’ ability to connect with their chosen brands and service providers, rather than limiting this, is the best way to help farmers optimise their operations with maximum flexibility, and feed that growing population.

“We took a long, hard look at what farmers need now”, says Rushing. “We took a step back and realised that, to truly advance our industry and our business, and help farmers feed the world, someone needs to bring all of this together. And that’s what we’re doing. We figured out most farmers do not use a single provider for every operation, and we don’t believe a single provider can create the best solutions for every aspect of farming. So our approach is to bring together the very best solutions and providers in each area to optimise what our customers can achieve with our machinery.”

Alongside what it integrates from strategic partners and third-party alliances, AGCO recently entered into a joint venture with software and electronics developer Appareo Systems called Intelligent Agricultural Solutions (IAS). “IAS is unlike anything else in the industry. It’s a self-funding R&D powerhouse for Fuse Technologies and it’s a faster way for us to bring new technology features and solutions to market”, says Hansotia. He says this open approach isn’t just resonating well with customers, it also makes good business sense, citing year over year gains in AGCO’s precision farming sales, even as the agricultural industry overall lags.

Sustainability on and off the farm
AGCO’s approach is underscored by a strong position on sustainability, both on and off the farm. It seeks to help farmers establish higher yield farming practices that produce more food with a lower environmental impact, helping farmers use fewer chemicals, less water and less fuel. Arable land being one of the finite resources used in agriculture, farmers and other stakeholders look at manufacturers such as AGCO to do their part in helping farmers do more with less.

The company also recognises the importance of sustainable business practices, calling sustainability a “business imperative” that “helps us build long-term value by supporting our mission and vision while helping to solve complex global issues”, according to its sustainability statements. The company’s approach to long-term economic, social and environmental sustainability is aligned with its overall vision to provide hi-tech solutions for professional farmers feeding the world. This approach, the company says, “challenges us to look for dynamic solutions to major issues that impact our business”, such as food security, farmer livelihood, and resource efficiency.

AGCO’s strategic corporate sustainability goals relate to each link in the company’s product life cycles, in four focus areas: operations, customers, suppliers and communities. These areas represent AGCO’s sustainability priorities, and they drive direction and focus through innovation, efficiency and long-term sustained growth. This means everything from minimising waste generated from its operations, raising the health and safety performance of its workers and helping customers improve their impact on water use and soil health, to fostering high performance quality, ethics and environmental standards with suppliers and enabling dealers and customers to have a positive impact on the communities in which they operate.

Even as the agricultural equipment industry faces a downturn in 2015 due to low global commodity prices, AGCO says it will continue to invest in the right areas to evolve towards the future of farming and feeding the predicted population of 10 billion people by 2050. The number of players in precision agriculture will increase as the industry reaches to meet those demands, and so will the amount of data that is generated. “It’s our mission to open as many doors as possible, facilitate productivity and reduce complexity”, says Rushing. “That’s how we can come together to help farmers feed the world.”