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New waves of IT in agriculture

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Pet control. Wildlife management. Water resource systems ... How policies affect adoption ... Spurts of adoption following droughts. ... – PowerPoint PPT presentation

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Title: New waves of IT in agriculture


1
New waves of IT in agriculture
  • David Zilberman
  • Zilber_at_are.berkeley.edu
  • University of California Berkeley

2
Overview
  • New IT
  • Lessons of adoption in ag
  • Trend in ag and implication for IT

3
New Waves of Information Technology
  • CommunicationInternet, video
  • Enhanced computing
  • Remote sensing/ Geopositioning
  • NetworksWeb
  • Wireless
  • MiniaturizationMicro and Nano

4
Expanding Capabilities Meeting Latent Demand
5
Identification and Tracingin regulation and
marketing
  • Who did it ? Identification of source of
    pollution, etc. Transition from non-source to
    source-point pollution control policies.
  • Who made it ? Identity preservation and product
    differentiation. Value capture in retailing and
    biotechnology.

6
Differentiation Discriminatory Treatment in
Production
  • Transition from uniform treatment of
    heterogeneous elements within the system to a
    precision system, where heterogeneity and
    variability are recognized and treated over space
    and time.
  • Enhancement of productivity by
  • Improving quality
  • Increasing yield
  • Reduced cost

7
Aggregation Creating Markets
  • Building a critical mass for differentiated
    products.
  • Match-making
  • Resale
  • Cooperative buying and selling
  • Enhanced price discovery
  • E-marketing is in its infancy and worth 150
    billion annually.

8
Overcoming Barriers of Space and Time in
production management
  • Video conferencing
  • Remote monitoring and treatment of living system
    applications in
  • Veterinary medicine
  • Pet control
  • Wildlife management
  • Water resource systems

9
Elements of Agricultural and Environmental IT
Packages
  • Package Multicomponent
  • Requires multidisciplinary cooperation in
  • Information science
  • Natural science
  • Decision science
  • Engineering

Monitoring
Diagnosis
Prescription
Application
10
Determinants of Technology Specification
  • Technological feasibility
  • Cost
  • Demand
  • High quality premium -- investment in
    sophisticated quality control system
  • Low value of saved inputs / minimal gain in
    output -- reduces incentives for precision

11
You can guess the use, impact, and value of a new
technology ahead of time but you cannot know
it.
12
Research on adoption aims to understand
Who adopts and when How to market new
technologiesHow policies affect adoption
13
  • On the Adoption and Impact of Information
    Technologies in Agriculture, Resources, and the
    Environment

14
Adoption-Dynamics ProcessS-Shaped Function of
Time
15
Adoption within Diverse Populations
  • Early adopters have most to gain from technology,
    tend to be younger and more educated.
  • Adoption is triggered by crises, higher prices,
    or regulation.
  • Credit constrains adoption.

16
Lessons of Low-Volume Irrigation Drip,
Microsprinkler
  • Diffused very slowly over 20 years, currently
    covers less than 10 of farmland.
  • High adoption rates on high-value crops, fruits,
    and vegetables, and in landscaping.
  • Gardeners are farmers too.
  • Spurts of adoption following droughts.
  • Adoption is higher in locations with high prices
    of water, sandy soil, and steep landlocations
    where the technology is most profitable.
  • Drainage problems trigger adoption.

17
Lessons of CIMIS
  • Benefits in the early 1990s were estimated to be
    15 times the cost.
  • Agricultural water savings, 10 to 40
  • Yield effect, up to 10.
  • Led to adoption of advanced management.
  • Unintended major uses were also in
  • Urban water use
  • Pest control
  • Legal procedures
  • Spawned a private network of weather stations
    with software management strategies.

18
Computers in Agriculture
  • Slow adoption rates only 25 in 1990, today
    close to 75.
  • Early adopter characteristics
  • larger, with multicrop integrated operations
  • younger, more educated,
  • Adoption enhanced recently by
  • Lower cost, user friendliness
  • network externalities
  • fun factors
  • Most adopters used word processing, billing, and
    business applications much less use of
    managerial application.

19
Technology leaders
  • Small number of leaders push frontier
  • DRIP,Computers,varieties,crops
  • Innovation is tough
  • Mostly in high value crops
  • Automation
  • Saves labor,chemical water
  • Increase quality
  • Reduce risks-physical financial
  • Cheap inputs reduce incentives to innovation
  • Regulations enhance adoption-
  • Timing matters

20
Agricultural Practices in the Information Era
  • Software and remote sensing ease compliance to
    pesticide-use registration requirements.
  • Electronic water markets.
  • Web and e-purchasing of inputs.
  • Cooperative electronic purchasing.
  • Electronic consulting.
  • E-marketing of flowers and other high-value
    output.
  • And thats only the beginning.

21
Precision farming potential in irrigation of
cotton
Realizing the potential requires perfect
information application
22
Factors affecting gains from precision
  • Ability to monitor the variables that count
  • Correct reading of information- 5 misdiagnosis
    may lead to losses
  • Timeliness
  • Effective and diverse response options-
    e.g.heterogeneous field conditions may benefit
    from diverse genetic choices (Biotech and
    Precision may go hand in hand)
  • Ability to replace or reduce polluting inputs

23
Processes affecting agriculture
  • Population growth
  • Environmentalism
  • Consumerism
  • Globalization
  • Privatization
  • New technologies-
  • Biotech
  • IT

24
Gains from quality
High quality
Price of peaches
1.00
Low quality
.30
Time
Midseason
Quality measured by sugar content flavor and size
can triple prices. Seasonality matters
25
Willingness to pay for green and clean
  • 10 of consumers will pay 25 for pesticides
    free crops
  • Prime markets(Japan) reward minimal chemical and
    biological manipulation of foods
  • Yard care industry grosses 40 Billion annually
    nation wide
  • Golf courses gross 6 Billions in California
    annually
  • Stigma effect of contamination reduce price of a
    unit of housing by 50K
  • During next decades
  • Several Billions are planned to be spent animal
    waste
  • Tens of Billions on water quality

26
Complementarity of IT and new Biotechnologies
  • New biology will increase varietal choice
  • Need capacity for changing variety and treatment
    within fields
  • Need documentation of treatment,state of plants
    and immediate response to changes

27
Think Locally act Globally
  • Ag and environmental IT will provide export
    opportunities- most ag and resource problems are
    outside the US
  • With or without Kyoto CO2 emission reduction and
    sequestration will be rewarded- monitoring will
    be required
  • Transition from water extraction to improve water
    efficiency- source of new global demand
  • Development increases demand for environmental
    amenities- It will allow to provide them cheaply
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