Precision Farming The $250 Billion Market And Goldman Sachs.

Precision farming and digital agriculture will help the industry achieve this critical goal. Feeding the world’s ever increasing population is big business, but it’s also an imprecise business and as the world’s population grows, improving efficiency to lift crop yields is going to become a priority for farmers. Precision agriculture could lift crop yields 70% by 2050, creating a $240 billion market for farm tech over the same period.These figures are from a new research booklet on the topic of precision farming from Goldman Sachs. The investment bank believes that the precision farming market could offer a tremendous opportunity, for both farmers and investors. The global crop production value in 2015 was $1.2 trillion, but there’s also plenty of waste in the system. Figures show that 40% of farm fields are over fertilized resulting in a yield loss of 15% to 20% from inadequate fertilizer application. Yields could be increased by around 18% by using precision fertilizer technology. Also, precision planting could produce a 13% improvement in yield while a further 13% improvement could be achieved via a fleet of smaller automated tractors. (According to academic research cited by Goldman, soil compaction — a result of large farm equipment — has decreased yields by 15% to 20% over the years). Further, it is estimated that farmers could reduce wastewater by 50% with precision irrigation systems paired with water sensors leading to a 10% improvement in yield.Some of these technologies are already in action and will be developed and refined over the next few years to enhance the product offering.Some farmers are already making use of multi-seed planters, which have just started to enter commercial production. These planters give farmers the ability to combine properties of different seeds in one planting. Farmers have noted that are using two different seed types they can increase yields by around 3% to 8% by matching up the right seeds to the right soil types. Growers note that the optimal hybrid seed mix utilizes two seed types; an offensive and a defensive variety. more